Arconic
Market Cap
US$2.6b
Last Updated
2020/10/27 23:57 UTC
Data Sources
Company Financials +
Executive Summary
Arconic Corporation manufactures and sells aluminum sheets, plates, extrusions, and architectural products in the United States, Hungary, Russia, China, France, the United Kingdom, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with reasonable growth potential.
Similar Companies
Share Price & News
How has Arconic's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARNC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.9%
ARNC
1.2%
US Metals and Mining
-1.1%
US Market
1 Year Return
n/a
ARNC
21.7%
US Metals and Mining
15.0%
US Market
Return vs Industry: Insufficient data to determine how ARNC performed against the US Metals and Mining industry.
Return vs Market: Insufficient data to determine how ARNC performed against the US Market.
Shareholder returns
| ARNC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | 1.2% | -1.1% |
| 30 Day | 26.1% | 7.2% | 2.9% |
| 90 Day | 40.7% | 8.4% | 5.7% |
| 1 Year | n/a | 24.5%21.7% | 17.6%15.0% |
| 3 Year | n/a | 16.5%8.6% | 38.9%29.7% |
| 5 Year | n/a | 98.7%80.7% | 78.4%58.4% |
Price Volatility Vs. Market
How volatile is Arconic's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Do Institutions Own Arconic Corporation (NYSE:ARNC) Shares?1 month ago | Simply Wall St
Is Arconic Corporation's (NYSE:ARNC) 13% ROE Better Than Average?2 months ago | Simply Wall St
Are Arconic's (NYSE:ARNC) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
Is Arconic undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARNC ($23.07) is trading below our estimate of fair value ($130.25)
Significantly Below Fair Value: ARNC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARNC is good value based on its PE Ratio (17.1x) compared to the US Metals and Mining industry average (17.4x).
PE vs Market: ARNC is good value based on its PE Ratio (17.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: ARNC is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: ARNC is overvalued based on its PB Ratio (2.2x) compared to the US Metals and Mining industry average (1.6x).
Next Steps
Future Growth
How is Arconic forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
70.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARNC's forecast earnings growth (70.6% per year) is above the savings rate (2.2%).
Earnings vs Market: ARNC's earnings (70.6% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARNC's revenue (14.5% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: ARNC's revenue (14.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARNC's Return on Equity is forecast to be low in 3 years time (14.2%).
Next Steps
Past Performance
How has Arconic performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARNC has a large one-off loss of $101.0M impacting its June 30 2020 financial results.
Growing Profit Margin: ARNC's current net profit margins (2.3%) are higher than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: ARNC's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: ARNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARNC had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-34.9%).
Return on Equity
High ROE: ARNC's Return on Equity (12.7%) is considered low.
Next Steps
Financial Health
How is Arconic's financial position?
Financial Position Analysis
Short Term Liabilities: ARNC's short term assets ($2.0B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: ARNC's short term assets ($2.0B) do not cover its long term liabilities ($3.5B).
Debt to Equity History and Analysis
Debt Level: ARNC's debt to equity ratio (110%) is considered high.
Reducing Debt: Insufficient data to determine if ARNC's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ARNC's debt is not well covered by operating cash flow (12.9%).
Interest Coverage: ARNC's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Arconic current dividend yield, its reliability and sustainability?
0.85%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ARNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ARNC'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 ARNC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ARNC'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 ARNC'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?
0.8yrs
Average management tenure
CEO
Tim Myers (54 yo)
0.50
Tenure
US$3,351,658
Compensation
Mr. Timothy Donald Myers, Tim, serves as the Chief Executive Officer of Arconic Corporation since April 01, 2020 and has been its Director since 2020. He served as an Executive Vice President and Member of ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD3.35M) is below average for companies of similar size in the US market ($USD5.63M).
Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | US$3.35m | 0.51% $ 13.0m | |
| Executive VP & CFO | 0.67yr | no data | 0.083% $ 2.1m | |
| VP of Treasury & Investor Relations | 0.75yr | no data | no data | |
| Executive VP | no data | no data | 0.059% $ 1.5m | |
| Vice President of Strategy & Corporate Development | 0.75yr | no data | no data | |
| Executive VP & Chief Human Resources Officer | no data | no data | 0.090% $ 2.3m | |
| Executive VP & Chief Commercial Officer | no data | no data | 0.16% $ 4.1m | |
| President of Global Rolled Products - North America | 0.75yr | no data | no data | |
| President of Global Rolled Products - Europe & Asia | 0.75yr | no data | no data | |
| VP & Controller | 0.67yr | no data | 0.039% $ 1.0m | |
| President of Building & Construction Systems | 0.75yr | no data | no data |
0.8yrs
Average Tenure
52yo
Average Age
Experienced Management: ARNC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | US$3.35m | 0.51% $ 13.0m | |
| Independent Director | 0.75yr | no data | 0.098% $ 2.5m | |
| Independent Director | 0.75yr | no data | 0.015% $ 371.2k | |
| Director | 0.75yr | no data | 0.065% $ 1.7m | |
| Independent Director | 0.75yr | no data | 0.015% $ 371.2k | |
| Independent Chairman | 0.50yr | no data | 0.026% $ 676.2k | |
| Independent Director | 0.75yr | no data | 0.031% $ 784.4k | |
| Independent Director | 0.75yr | no data | 0.075% $ 1.9m | |
| Independent Director | 0.75yr | no data | 0.015% $ 371.2k | |
| Independent Director | 0.75yr | no data | 0.015% $ 371.2k | |
| Independent Director | 0.75yr | no data | no data |
0.8yrs
Average Tenure
61yo
Average Age
Experienced Board: ARNC's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: ARNC only recently listed within the past 12 months.
Top Shareholders
Company Information
Arconic Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arconic Corporation
- Ticker: ARNC
- Exchange: NYSE
- Founded: 2019
- Industry: Aluminum
- Sector: Materials
- Market Cap: US$2.557b
- Shares outstanding: 109.07m
- Website: https://www.arconic.com
Number of Employees
Location
- Arconic Corporation
- 201 Isabella Street
- Pittsburgh
- Pennsylvania
- 15212-5872
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARNC1 * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 2020 |
| ARNC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2020 |
| 47I | MUN (Boerse Muenchen) | Yes | Common Stock | DE | EUR | Apr 2020 |
| 47I | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Apr 2020 |
| 47I | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2020 |
Biography
Arconic Corporation manufactures and sells aluminum sheets, plates, extrusions, and architectural products in the United States, Hungary, Russia, China, France, the United Kingdom, and internationally. It ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/27 23:57 |
| End of Day Share Price | 2020/10/27 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.