NYSE:AA

Stock Analysis Report

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Executive Summary

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. More Details

Rewards

Earnings are forecast to grow 69.22% per year

Earnings have grown 5.6% per year over the past 5 years

Risk Analysis

No risks detected for AA from our risk checks.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Alcoa's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

AA

-1.3%

US Metals and Mining

-5.3%

US Market


1 Year Return

-40.9%

AA

20.3%

US Metals and Mining

10.4%

US Market

Return vs Industry: AA underperformed the US Metals and Mining industry which returned 20.6% over the past year.

Return vs Market: AA underperformed the US Market which returned 12% over the past year.


Shareholder returns

AAIndustryMarket
7 Day-4.1%-1.3%-5.3%
30 Day11.1%6.2%-2.1%
90 Day-0.6%6.6%1.7%
1 Year-40.9%-40.9%23.1%20.3%12.9%10.4%
3 Year-72.6%-72.6%16.2%8.4%34.3%25.4%
5 Yearn/a109.3%90.1%73.7%54.3%

Price Volatility Vs. Market

How volatile is Alcoa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alcoa undervalued compared to its fair value and its price relative to the market?

0.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AA ($12.92) is trading above our estimate of fair value ($7.3)

Significantly Below Fair Value: AA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AA is unprofitable, so we can't compare its PE Ratio to the US Metals and Mining industry average.

PE vs Market: AA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AA is good value based on its PB Ratio (0.7x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Alcoa forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

69.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: AA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AA's is expected to become profitable in the next 3 years.

Revenue vs Market: AA's revenue (2.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: AA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AA's Return on Equity is forecast to be low in 3 years time (0.4%).


Next Steps

Past Performance

How has Alcoa performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AA is currently unprofitable.

Growing Profit Margin: AA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AA is unprofitable, but has reduced losses over the past 5 years at a rate of 5.6% per year.

Accelerating Growth: Unable to compare AA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-12.7%).


Return on Equity

High ROE: AA has a negative Return on Equity (-7.69%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alcoa's financial position?


Financial Position Analysis

Short Term Liabilities: AA's short term assets ($4.0B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: AA's short term assets ($4.0B) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: AA's debt to equity ratio (47.7%) is considered high.

Reducing Debt: AA's debt to equity ratio has increased from 2.1% to 47.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.9% per year.


Next Steps

Dividend

What is Alcoa current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Roy Harvey (45 yo)

3.92yrs

Tenure

US$12,963,461

Compensation

Mr. Roy C. Harvey has been the Chief Executive Officer of Alcoa Corporation since November 01, 2016 and has been its President since May 9, 2017. Mr. Harvey served as Executive Vice President and President ...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD12.96M) is above average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: Roy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Roy Harvey
President3.92yrsUS$12.96m0.035%
$ 833.5k
William Oplinger
Executive VP & CFO3.92yrsUS$4.26m0.047%
$ 1.1m
John Slaven
Executive VP & Chief Operations Officer0.92yrUS$2.26m0%
$ 0
Jeffrey Heeter
Executive VP & General Counsel3.92yrsUS$2.69m0.012%
$ 294.4k
Timothy Reyes
Executive VP & Chief Commercial Officerno dataUS$2.74m0.012%
$ 279.0k
James Dwyer
Vice President of Investor Relations3.92yrsno datano data
Catherine Garfinkel
Senior VP and Chief Ethics3.92yrsno datano data
Tammi Jones
Executive VP & Chief Human Resources Officer0.75yrno data0.016%
$ 384.5k
Benjamin Kahrs
Executive VP & Chief Innovation Officer1.92yrsno data0.014%
$ 322.9k
Heather Hudak
Senior Vice President of Tax1.75yrsno datano data
Sonya Harden
Executive VP & Chief External Affairs Officer0.75yrno data0.0080%
$ 188.9k
Renato De Bacchi
Senior VP & Treasurer3.92yrsno datano data

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: AA's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roy Harvey
President3.92yrsUS$12.96m0.035%
$ 833.5k
Steven Williams
Independent Director3.92yrsUS$240.00k0.028%
$ 660.4k
Michael Morris
Independent Chairman of the Board3.92yrsUS$390.00k0.018%
$ 429.1k
James Hughes
Independent Director3.92yrsUS$251.00k0.016%
$ 386.4k
Ernesto Zedillo Ponce de Leon
Independent Director3.92yrsUS$267.50k0.018%
$ 433.1k
Kathryn Fuller
Independent Director3.92yrsUS$256.50k0.016%
$ 386.4k
James Nevels
Independent Director3.92yrsUS$240.00k0.017%
$ 404.7k
Timothy Flynn
Independent Director3.92yrsUS$250.00k0.029%
$ 690.8k
Mary Citrino
Independent Director3.92yrsUS$240.00k0.018%
$ 425.0k
Carol Roberts
Independent Director3.92yrsUS$267.50k0.016%
$ 386.4k
Suzanne Sitherwood
Independent Director3.92yrsUS$251.00k0.016%
$ 386.4k
Pasquale Fiore
Independent Director0.42yrno data0.0094%
$ 222.4k

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: AA's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alcoa Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alcoa Corporation
  • Ticker: AA
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: US$2.371b
  • Shares outstanding: 185.92m
  • Website: https://www.alcoa.com

Number of Employees


Location

  • Alcoa Corporation
  • 201 Isabella Street
  • Suite 500
  • Pittsburgh
  • Pennsylvania
  • 15212
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AANYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2016
AA1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2016
185DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016
AAUETLX (Eurotlx)YesCommon StockITEUROct 2016
0HCBLSE (London Stock Exchange)YesCommon StockGBUSDOct 2016
ALCAWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2016

Biography

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 23:47
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.