ALCOA CORP (185.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:185 - US0138721065 - Common Stock
52.31 EUR
-2.28 (-4.18%)
185 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 43 industry peers in the Metals & Mining industry. 185 has a medium profitability rating, but doesn't score so well on its financial health evaluation. 185 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- 185 had positive earnings in the past year.
- 185 had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: 185 reported negative net income in multiple years.
- Of the past 5 years 185 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 185 (7.18%) is better than 67.44% of its industry peers.
- The Return On Equity of 185 (18.06%) is better than 83.72% of its industry peers.
- 185 has a Return On Invested Capital (7.75%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROIC | 7.75% |
ROA(3y)-1.67%
ROA(5y)-0.66%
ROE(3y)-5.52%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 185 has a Profit Margin of 8.91%. This is in the better half of the industry: 185 outperforms 67.44% of its industry peers.
- 185's Profit Margin has declined in the last couple of years.
- 185 has a Operating Margin (10.77%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 185 has declined.
- With a Gross Margin value of 18.41%, 185 is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of 185 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 8.91% | ||
| GM | 18.41% |
OM growth 3Y-24.44%
OM growth 5Y-2.57%
PM growth 3Y-47.72%
PM growth 5YN/A
GM growth 3Y-14.25%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
- 185 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for 185. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.23 indicates that 185 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 185 has a Altman-Z score of 2.23. This is comparable to the rest of the industry: 185 outperforms 41.86% of its industry peers.
- 185 has a debt to FCF ratio of 4.97. This is a neutral value as 185 would need 4.97 years to pay back of all of its debts.
- 185's Debt to FCF ratio of 4.97 is in line compared to the rest of the industry. 185 outperforms 55.81% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that 185 is not too dependend on debt financing.
- 185 has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: 185 underperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.76
WACC10.18%
2.3 Liquidity
- 185 has a Current Ratio of 1.56. This is a normal value and indicates that 185 is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.56, 185 is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
- A Quick Ratio of 0.91 indicates that 185 may have some problems paying its short term obligations.
- The Quick ratio of 185 (0.91) is worse than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- 185 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 656.25%, which is quite impressive.
- 185 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -48.01% yearly.
- Looking at the last year, 185 shows a quite strong growth in Revenue. The Revenue has grown by 16.94% in the last year.
- The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)656.25%
EPS 3Y-48.01%
EPS 5YN/A
EPS Q2Q%-103.51%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y-0.71%
Revenue growth 5Y2.66%
Sales Q2Q%3.13%
3.2 Future
- Based on estimates for the next years, 185 will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.17% on average per year.
- The Revenue is expected to decrease by -0.55% on average over the next years.
EPS Next Y288.16%
EPS Next 2Y108.01%
EPS Next 3Y72.16%
EPS Next 5Y19.17%
Revenue Next Year7.91%
Revenue Next 2Y7.44%
Revenue Next 3Y5.7%
Revenue Next 5Y-0.55%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.21, 185 is valued on the expensive side.
- 74.42% of the companies in the same industry are more expensive than 185, based on the Price/Earnings ratio.
- 185's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 14.74, which indicates a correct valuation of 185.
- 185's Price/Forward Earnings is on the same level as the industry average.
- 185 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 14.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 185 is valued a bit cheaper than the industry average as 67.44% of the companies are valued more expensively.
- 185's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 185 is cheaper than 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.55 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 185's earnings are expected to grow with 72.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y108.01%
EPS Next 3Y72.16%
5. Dividend
5.1 Amount
- 185 has a yearly dividend return of 0.63%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.64, 185 is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, 185's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 9.25% of the earnings are spent on dividend by 185. This is a low number and sustainable payout ratio.
DP9.25%
EPS Next 2Y108.01%
EPS Next 3Y72.16%
ALCOA CORP / 185.DE FAQ
What is the fundamental rating for 185 stock?
ChartMill assigns a fundamental rating of 4 / 10 to 185.DE.
What is the valuation status of ALCOA CORP (185.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to ALCOA CORP (185.DE). This can be considered as Fairly Valued.
What is the profitability of 185 stock?
ALCOA CORP (185.DE) has a profitability rating of 4 / 10.
What is the financial health of ALCOA CORP (185.DE) stock?
The financial health rating of ALCOA CORP (185.DE) is 3 / 10.
What is the expected EPS growth for ALCOA CORP (185.DE) stock?
The Earnings per Share (EPS) of ALCOA CORP (185.DE) is expected to grow by 288.16% in the next year.