ALCOA CORP (185.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:185 - US0138721065 - Common Stock
50.34 EUR
-1.97 (-3.77%)
185 gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 45 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 185 was profitable.
- 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 4 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 68.89% of its industry peers.
- The Return On Equity of 185 (18.06%) is better than 86.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.75%, 185 is in line with its industry, outperforming 57.78% of the companies in the same 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
- With a decent Profit Margin value of 8.91%, 185 is doing good in the industry, outperforming 71.11% of the companies in the same industry.
- In the last couple of years the Profit Margin of 185 has declined.
- The Operating Margin of 185 (10.77%) 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: 60.00% 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 2.16 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 2.16. This is comparable to the rest of the industry: 185 outperforms 42.22% 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.
- The Debt to FCF ratio of 185 (4.97) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.41 indicates that 185 is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.41, 185 is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.75
WACC10.33%
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 68.89% of its industry peers.
- A Quick Ratio of 0.91 indicates that 185 may have some problems paying its short term obligations.
- 185's Quick ratio of 0.91 is on the low side compared to the rest of the industry. 185 is outperformed by 66.67% 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 293.75%, which is quite impressive.
- Measured over the past years, 185 shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.00% on average per year.
EPS 1Y (TTM)293.75%
EPS 3Y-7%
EPS 5YN/A
EPS Q2Q%21.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.06%
3.2 Future
- The Earnings Per Share is expected to decrease by -8.37% on average over the next years.
- Based on estimates for the next years, 185 will show a decrease in Revenue. The Revenue will decrease by -1.16% on average per year.
EPS Next Y16.25%
EPS Next 2Y18.3%
EPS Next 3Y-6.34%
EPS Next 5Y-8.37%
Revenue Next Year7.64%
Revenue Next 2Y4.29%
Revenue Next 3Y3.32%
Revenue Next 5Y-1.16%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.78 indicates a correct valuation of 185.
- 80.00% of the companies in the same industry are more expensive than 185, based on the Price/Earnings ratio.
- 185 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 13.56, 185 is valued correctly.
- Based on the Price/Forward Earnings ratio, 185 is valued a bit cheaper than 80.00% of the companies in the same industry.
- 185's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
- 75.56% of the companies in the same industry are more expensive than 185, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 185 indicates a somewhat cheap valuation: 185 is cheaper than 71.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.73 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
- 185's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A cheap valuation may be justified as 185's earnings are expected to decrease with -6.34% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y18.3%
EPS Next 3Y-6.34%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.63%, 185 is not a good candidate for dividend investing.
- 185's Dividend Yield is comparable with the industry average which is at 1.67.
- 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 2Y18.3%
EPS Next 3Y-6.34%
ALCOA CORP / 185.DE FAQ
What is the fundamental rating for 185 stock?
ChartMill assigns a fundamental rating of 3 / 10 to 185.DE.
What is the valuation status of ALCOA CORP (185.DE) stock?
ChartMill assigns a valuation rating of 5 / 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 16.25% in the next year.