NYSE:ARNC

Stock Analysis Report

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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


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

ARNCIndustryMarket
7 Day-2.9%1.2%-1.1%
30 Day26.1%7.2%2.9%
90 Day40.7%8.4%5.7%
1 Yearn/a24.5%21.7%17.6%15.0%
3 Yearn/a16.5%8.6%38.9%29.7%
5 Yearn/a98.7%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

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

NamePositionTenureCompensationOwnership
Timothy Myers
CEO & Director0.50yrUS$3.35m0.51%
$ 13.0m
Erick Asmussen
Executive VP & CFO0.67yrno data0.083%
$ 2.1m
Jason Secore
VP of Treasury & Investor Relations0.75yrno datano data
Diana Toman
Executive VPno datano data0.059%
$ 1.5m
Eric Rasmussen
Vice President of Strategy & Corporate Development0.75yrno datano data
Melissa Miller
Executive VP & Chief Human Resources Officerno datano data0.090%
$ 2.3m
Mark Vrablec
Executive VP & Chief Commercial Officerno datano data0.16%
$ 4.1m
Nandu Srinivasan
President of Global Rolled Products - North America0.75yrno datano data
Rob Woodall
President of Global Rolled Products - Europe & Asia0.75yrno datano data
Mary Zik
VP & Controller0.67yrno data0.039%
$ 1.0m
Diana Perreiah
President of Building & Construction Systems0.75yrno datano 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

NamePositionTenureCompensationOwnership
Timothy Myers
CEO & Director0.50yrUS$3.35m0.51%
$ 13.0m
Ernest O'Neal
Independent Director0.75yrno data0.098%
$ 2.5m
Jeffrey Stafeil
Independent Director0.75yrno data0.015%
$ 371.2k
Elmer Doty
Director0.75yrno data0.065%
$ 1.7m
Carol Eicher
Independent Director0.75yrno data0.015%
$ 371.2k
Frederick Henderson
Independent Chairman0.50yrno data0.026%
$ 676.2k
William Austen
Independent Director0.75yrno data0.031%
$ 784.4k
Christopher Ayers
Independent Director0.75yrno data0.075%
$ 1.9m
Margaret Billson
Independent Director0.75yrno data0.015%
$ 371.2k
Austin Camporin
Independent Director0.75yrno data0.015%
$ 371.2k
Jacques Croisetiere
Independent Director0.75yrno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARNC1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2020
ARNCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2020
47IMUN (Boerse Muenchen)YesCommon StockDEEURApr 2020
47IXTRA (XETRA Trading Platform)YesCommon StockDEEURApr 2020
47IDB (Deutsche Boerse AG)YesCommon StockDEEURApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 23:57
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
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.