Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally.
Adequate balance sheet and fair value.
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's share price has been volatile over the past 3 months.
7 Day Return
US Metals and Mining
1 Year Return
US Metals and Mining
Return vs Industry: AA underperformed the US Metals and Mining industry which returned -27.7% over the past year.
Return vs Market: AA underperformed the US Market which returned -13.3% over the past year.
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
5 hours ago | Simply Wall StAre Investors Undervaluing Alcoa Corporation (NYSE:AA) By 26%?
3 weeks ago | Simply Wall StWhat Kind Of Shareholders Own Alcoa Corporation (NYSE:AA)?
3 months ago | Simply Wall StAre Investors Undervaluing Alcoa Corporation (NYSE:AA) By 47%?
Is Alcoa undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AA ($6.55) is trading below our estimate of fair value ($8.81)
Significantly Below Fair Value: AA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AA is unprofitable, so we can't compare its PE Ratio to the 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 (0.3x) compared to the US Metals and Mining industry average (1x).
How is Alcoa forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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 (1.7%).
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 (0.9% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: AA's revenue (0.9% 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 (8.4%).
How has Alcoa performed over the past 5 years?
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 15.5% 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 (-22.3%).
Return on Equity
High ROE: AA has a negative Return on Equity (-14.49%), as it is currently unprofitable.
How is Alcoa's financial position?
Financial Position Analysis
Short Term Liabilities: AA's short term assets ($3.5B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: AA's short term assets ($3.5B) do not cover its long term liabilities ($6.2B).
Debt to Equity History and Analysis
Debt Level: AA's debt to equity ratio (30.6%) is considered satisfactory.
Reducing Debt: AA's debt to equity ratio has increased from 2.6% to 30.6% over the past 5 years.
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 26.1% per year.
What is Alcoa's 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 payouts.
High Dividend: Unable to evaluate AA's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Roy Harvey (44yo)
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 ($USD4.74M).
Compensation vs Earnings: Roy's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||3.42yrs||US$4.26m||0.047% $570.0k|
|Executive VP & Chief Operations Officer||0.42yr||US$2.26m||no data|
|Executive VP & General Counsel||3.42yrs||US$2.69m||0.012% $151.2k|
|Executive VP & Chief Commercial Officer||no data||US$2.74m||0.012% $143.3k|
|Vice President of Investor Relations||3.42yrs||no data||no data|
|Chief Ethics & Compliance Officer and Senior VP||3.42yrs||no data||no data|
|Executive VP & Chief Human Resources Officer||0.25yr||no data||no data|
|Executive VP & Chief Innovation Officer||1.42yrs||no data||0.014% $165.9k|
|Senior Vice President of Tax||1.25yrs||no data||no data|
Experienced Management: AA's management team is considered experienced (3.4 years average tenure).
|Independent Director||3.42yrs||US$250.00k||0.0052% $63.8k|
|Independent Chairman of the Board||3.42yrs||US$390.00k||0.0061% $74.8k|
|Independent Director||3.42yrs||US$251.00k||0.0043% $52.9k|
|Independent Director||3.42yrs||US$256.50k||0.0043% $52.9k|
|Independent Director||3.42yrs||US$240.00k||0.0044% $53.1k|
|Independent Director||3.42yrs||US$250.00k||0.011% $131.8k|
|Independent Director||3.42yrs||US$240.00k||0.0060% $72.8k|
|Independent Director||3.42yrs||US$267.50k||0.0043% $52.9k|
|Independent Director||3.42yrs||US$251.00k||0.0043% $52.9k|
Experienced Board: AA's board of directors are considered experienced (3.4 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Alcoa Corporation's company bio, employee growth, exchange listings and data sources
- Name: Alcoa Corporation
- Ticker: AA
- Exchange: NYSE
- Founded: 1888
- Industry: Aluminum
- Sector: Materials
- Market Cap: US$1.218b
- Shares outstanding: 185.92m
- Website: https://www.alcoa.com
Number of Employees
- Alcoa Corporation
- 201 Isabella Street
- Suite 500
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AA||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 2016|
|AA1 *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Oct 2016|
|185||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 2016|
|AAU||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Oct 2016|
|0HCB||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Oct 2016|
|ALCA||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Oct 2016|
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 operates through three segments: Bauxite, Alumina, and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells bauxite to customers who process it into industrial chemical products. The company is also involved in the aluminum smelting, casting, and rolling businesses; and the production of aluminum sheets primarily sold directly to customers in the packaging market for the production of aluminum cans. In addition, it owns hydro and coal generation assets that produce and sell electricity to the wholesale market to traders, large industrial consumers, distribution companies, and other generation companies. The company was formerly known as Alcoa Upstream Corporation and changed its name to Alcoa Corporation in October 2016. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 08:19|
|End of Day Share Price||2020/04/06 00:00|
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.