ALCOA CORP (1AA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AA - US0138721065 - Common Stock
31.8 EUR
+3.72 (+13.23%)
Overall 1AA gets a fundamental rating of 4 out of 10. We evaluated 1AA against 40 industry peers in the Metals & Mining industry. While 1AA is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1AA.
1. Profitability
1.1 Basic Checks
1AA had positive earnings in the past year.
1AA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1AA reported negative net income in multiple years.
In the past 5 years 1AA always reported a positive cash flow from operatings.
1.2 Ratios
1AA has a Return On Assets of 7.18%. This is in the better half of the industry: 1AA outperforms 73.81% of its industry peers.
The Return On Equity of 1AA (18.06%) is better than 88.10% of its industry peers.
The Return On Invested Capital of 1AA (8.26%) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROIC | 8.26% |
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
1AA has a Profit Margin of 8.91%. This is in the better half of the industry: 1AA outperforms 73.81% of its industry peers.
1AA's Profit Margin has declined in the last couple of years.
1AA has a Operating Margin of 10.77%. This is comparable to the rest of the industry: 1AA outperforms 59.52% of its industry peers.
In the last couple of years the Operating Margin of 1AA has declined.
The Gross Margin of 1AA (18.41%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1AA 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
1AA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1AA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1AA has been increased compared to 5 years ago.
1AA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that 1AA is in the distress zone and has some risk of bankruptcy.
1AA has a Altman-Z score (1.79) which is in line with its industry peers.
1AA has a debt to FCF ratio of 4.97. This is a neutral value as 1AA would need 4.97 years to pay back of all of its debts.
1AA's Debt to FCF ratio of 4.97 is fine compared to the rest of the industry. 1AA outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that 1AA is not too dependend on debt financing.
1AA's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. 1AA is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.93
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.56 indicates that 1AA should not have too much problems paying its short term obligations.
1AA's Current ratio of 1.56 is in line compared to the rest of the industry. 1AA outperforms 42.86% of its industry peers.
A Quick Ratio of 0.91 indicates that 1AA may have some problems paying its short term obligations.
1AA has a Quick ratio of 0.91. This is comparable to the rest of the industry: 1AA outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
1AA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 656.25%, which is quite impressive.
The earnings per share for 1AA have been decreasing by -48.01% on average. This is quite bad
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
1AA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.17% yearly.
1AA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.55% yearly.
EPS Next Y211.25%
EPS Next 2Y72.1%
EPS Next 3Y49.47%
EPS Next 5Y19.17%
Revenue Next Year7.44%
Revenue Next 2Y3.95%
Revenue Next 3Y3.67%
Revenue Next 5Y-0.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 10.32, which indicates a very decent valuation of 1AA.
Based on the Price/Earnings ratio, 1AA is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
1AA is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.92 indicates a correct valuation of 1AA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, 1AA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AA indicates a rather cheap valuation: 1AA is cheaper than 80.95% of the companies listed in the same industry.
76.19% of the companies in the same industry are more expensive than 1AA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.33 | ||
| EV/EBITDA | 5.29 |
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 1AA's earnings are expected to grow with 49.47% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y72.1%
EPS Next 3Y49.47%
5. Dividend
5.1 Amount
1AA has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.97, 1AA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 1AA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
9.25% of the earnings are spent on dividend by 1AA. This is a low number and sustainable payout ratio.
DP9.25%
EPS Next 2Y72.1%
EPS Next 3Y49.47%
BIT:1AA (10/21/2025, 7:00:00 PM)
31.8
+3.72 (+13.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners81.04%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap8.23B
Revenue(TTM)12.87B
Net Income(TTM)1.15B
Analysts78.1
Price Target35.14 (10.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP9.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.23%
Min EPS beat(2)21.88%
Max EPS beat(2)90.58%
EPS beat(4)4
Avg EPS beat(4)36.9%
Min EPS beat(4)3.63%
Max EPS beat(4)90.58%
EPS beat(8)7
Avg EPS beat(8)39.11%
EPS beat(12)9
Avg EPS beat(12)21.11%
EPS beat(16)12
Avg EPS beat(16)1.64%
Revenue beat(2)1
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)1.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.81%
Revenue beat(12)2
Avg Revenue beat(12)-2.97%
Revenue beat(16)3
Avg Revenue beat(16)-3.12%
PT rev (1m)17.75%
PT rev (3m)6.49%
EPS NQ rev (1m)66.45%
EPS NQ rev (3m)99.33%
EPS NY rev (1m)-8.58%
EPS NY rev (3m)-15.76%
Revenue NQ rev (1m)4.8%
Revenue NQ rev (3m)5.49%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.74 | ||
| P/FCF | 18.33 | ||
| P/OCF | 8.95 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)3.08
EY9.69%
EPS(NY)2.46
Fwd EY7.74%
FCF(TTM)1.73
FCFY5.46%
OCF(TTM)3.55
OCFY11.17%
SpS43.02
BVpS21.21
TBVpS21.21
PEG (NY)0.05
PEG (5Y)N/A
Graham Number38.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROCE | 11.01% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.37% | ||
| ROICexgc | 9.37% | ||
| OM | 10.77% | ||
| PM (TTM) | 8.91% | ||
| GM | 18.41% | ||
| FCFM | 4.03% |
ROA(3y)-1.67%
ROA(5y)-0.66%
ROE(3y)-5.52%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-23.91%
ROICexgc growth 5Y3.19%
ROICexc growth 3Y-23.93%
ROICexc growth 5Y3.18%
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%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 87.74% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.99% | ||
| Profit Quality | 45.29% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.79 |
F-Score7
WACC8.9%
ROIC/WACC0.93
Cap/Depr(3y)84.05%
Cap/Depr(5y)72.99%
Cap/Sales(3y)4.59%
Cap/Sales(5y)4.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)656.25%
EPS 3Y-48.01%
EPS 5YN/A
EPS Q2Q%-103.51%
EPS Next Y211.25%
EPS Next 2Y72.1%
EPS Next 3Y49.47%
EPS Next 5Y19.17%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y-0.71%
Revenue growth 5Y2.66%
Sales Q2Q%3.13%
Revenue Next Year7.44%
Revenue Next 2Y3.95%
Revenue Next 3Y3.67%
Revenue Next 5Y-0.55%
EBIT growth 1Y377.93%
EBIT growth 3Y-24.98%
EBIT growth 5Y0.02%
EBIT Next Year100.13%
EBIT Next 3Y30.43%
EBIT Next 5Y9.85%
FCF growth 1Y203.18%
FCF growth 3Y-57.05%
FCF growth 5Y-32.82%
OCF growth 1Y9563.64%
OCF growth 3Y-12.23%
OCF growth 5Y-1.94%
ALCOA CORP / 1AA.MI FAQ
What is the ChartMill fundamental rating of ALCOA CORP (1AA.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1AA.MI.
What is the valuation status of ALCOA CORP (1AA.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to ALCOA CORP (1AA.MI). This can be considered as Undervalued.
Can you provide the profitability details for ALCOA CORP?
ALCOA CORP (1AA.MI) has a profitability rating of 5 / 10.
What is the valuation of ALCOA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALCOA CORP (1AA.MI) is 10.32 and the Price/Book (PB) ratio is 1.5.
How sustainable is the dividend of ALCOA CORP (1AA.MI) stock?
The dividend rating of ALCOA CORP (1AA.MI) is 3 / 10 and the dividend payout ratio is 9.25%.