ALCOA CORP (185.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:185 - US0138721065 - Common Stock
54.59 EUR
+0.03 (+0.05%)
Taking everything into account, 185 scores 4 out of 10 in our fundamental rating. 185 was compared to 43 industry peers in the Metals & Mining industry. There are concerns on the financial health of 185 while its profitability can be described as average. 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.
- In the past year 185 had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: 185 reported negative net income in multiple years.
- 185 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 185's Return On Assets of 7.18% is fine compared to the rest of the industry. 185 outperforms 67.44% of its industry peers.
- 185 has a Return On Equity of 18.06%. This is amongst the best in the industry. 185 outperforms 83.72% of its industry peers.
- 185 has a Return On Invested Capital (7.75%) which is in line with its industry peers.
| 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
- Looking at the Profit Margin, with a value of 8.91%, 185 is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
- In the last couple of years the Profit Margin of 185 has declined.
- 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.
- The Gross Margin of 185 (18.41%) is worse than 62.79% of its industry peers.
- 185's Gross Margin has declined in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 185 is destroying value.
- 185 has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 185 has more shares outstanding
- 185 has a worse debt/assets ratio than last year.
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.
- Looking at the Altman-Z score, with a value of 2.23, 185 is in line with its industry, outperforming 41.86% of the companies in the same industry.
- The Debt to FCF ratio of 185 is 4.97, which is a neutral value as it means it would take 185, 4.97 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 185 (4.97) is comparable to the rest of the industry.
- 185 has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.41, 185 is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.76
WACC10.2%
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.
- 185's Current ratio of 1.56 is on the low side compared to the rest of the industry. 185 is outperformed by 72.09% of its industry peers.
- A Quick Ratio of 0.91 indicates that 185 may have some problems paying its short term obligations.
- 185 has a worse Quick ratio (0.91) 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.
- The Revenue has grown by 16.94% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 19.17% on average over the next years. This is quite good.
- 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
- Based on the Price/Earnings ratio of 17.96, the valuation of 185 can be described as rather expensive.
- Based on the Price/Earnings ratio, 185 is valued a bit cheaper than 74.42% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 185 to the average of the S&P500 Index (27.30), we can say 185 is valued slightly cheaper.
- 185 is valuated correctly with a Price/Forward Earnings ratio of 15.38.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 185 is on the same level as its industry peers.
- 185's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 185 indicates a somewhat cheap valuation: 185 is cheaper than 67.44% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 185 indicates a somewhat cheap valuation: 185 is cheaper than 67.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.89 | ||
| 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.
- A more expensive valuation may be justified as 185's earnings are expected to grow with 72.16% in the coming years.
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 1.65, 185 is paying slightly less dividend.
- With a Dividend Yield of 0.63, 185 pays less dividend than the S&P500 average, which is at 1.82.
| 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 2 / 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.