Arconic Corporation (ARNC) Stock Fundamental Analysis
NYSE:ARNC - New York Stock Exchange, Inc. - US03966V1070 - Common Stock - Currency: USD
Taking everything into account, ARNC scores 3 out of 10 in our fundamental rating. ARNC was compared to 150 industry peers in the Metals & Mining industry. ARNC has a bad profitability rating. Also its financial health evaluation is rather negative. ARNC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ARNC has reported negative net income.
In the past year ARNC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ARNC reported negative net income in multiple years.
Of the past 5 years ARNC 4 years had a positive operating cash flow.
1.2 Ratios
ARNC has negative profitability rations, so we won't be analyzing them here.
The Return On Invested Capital of ARNC (6.84%) is better than 72.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARNC is below the industry average of 8.63%.
The last Return On Invested Capital (6.84%) for ARNC is above the 3 year average (6.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 6.84% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.44%
ROIC(5y)6.5%
1.3 Margins
Looking at the Operating Margin, with a value of 4.41%, ARNC is in line with its industry, outperforming 54.05% of the companies in the same industry.
In the last couple of years the Operating Margin of ARNC has grown nicely.
Looking at the Gross Margin, with a value of 10.75%, ARNC is in line with its industry, outperforming 43.92% of the companies in the same industry.
In the last couple of years the Gross Margin of ARNC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.41% | ||
| PM (TTM) | N/A | ||
| GM | 10.75% |
OM growth 3Y3.22%
OM growth 5Y3.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.23%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARNC is destroying value.
Compared to 1 year ago, ARNC has less shares outstanding
ARNC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.02 indicates that ARNC 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 2.02, ARNC is doing worse than 60.14% of the companies in the same industry.
ARNC has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as ARNC would need 9.24 years to pay back of all of its debts.
ARNC's Debt to FCF ratio of 9.24 is fine compared to the rest of the industry. ARNC outperforms 74.32% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ARNC has dependencies on debt financing.
The Debt to Equity ratio of ARNC (1.08) is worse than 89.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.75
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.62 indicates that ARNC should not have too much problems paying its short term obligations.
The Current ratio of ARNC (1.62) is worse than 77.03% of its industry peers.
A Quick Ratio of 0.80 indicates that ARNC may have some problems paying its short term obligations.
The Quick ratio of ARNC (0.80) is worse than 82.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ARNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -236.96%.
The Revenue has decreased by -7.14% in the past year.
The Revenue has been growing slightly by 5.60% on average over the past years.
EPS 1Y (TTM)-236.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-44.76%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y7.19%
Revenue growth 5Y5.6%
Sales Q2Q%-21.9%
3.2 Future
The Earnings Per Share is expected to grow by 58.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, ARNC will show a decrease in Revenue. The Revenue will decrease by -1.43% on average per year.
EPS Next Y204.68%
EPS Next 2Y89.31%
EPS Next 3Y58.56%
EPS Next 5YN/A
Revenue Next Year-8.02%
Revenue Next 2Y-3.31%
Revenue Next 3Y-1.43%
Revenue Next 5YN/A
3.3 Evolution
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
ARNC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
ARNC is valuated reasonably with a Price/Forward Earnings ratio of 9.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARNC indicates a somewhat cheap valuation: ARNC is cheaper than 73.65% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARNC to the average of the S&P500 Index (22.70), we can say ARNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARNC is valued a bit cheaper than 72.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARNC is valued cheaper than 83.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
ARNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARNC's earnings are expected to grow with 58.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y89.31%
EPS Next 3Y58.56%
5. Dividend
5.1 Amount
ARNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.99
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners45.06%
Ins Owner Change0%
Market Cap3.01B
Analysts45.71
Price Target23.97 (-20.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.56%
Min EPS beat(2)-22.85%
Max EPS beat(2)13.73%
EPS beat(4)1
Avg EPS beat(4)-354.78%
Min EPS beat(4)-1053.9%
Max EPS beat(4)13.73%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)2.39%
Revenue beat(4)2
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)3.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)12.94%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)-8.24%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)-6.45%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.97 | ||
| P/S | 0.37 | ||
| P/FCF | 17.4 | ||
| P/OCF | 7.01 | ||
| P/B | 2.03 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)-2.52
EYN/A
EPS(NY)3.01
Fwd EY10.03%
FCF(TTM)1.72
FCFY5.75%
OCF(TTM)4.28
OCFY14.26%
SpS81.13
BVpS14.79
TBVpS11.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | 6.84% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 7.91% | ||
| OM | 4.41% | ||
| PM (TTM) | N/A | ||
| GM | 10.75% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.44%
ROIC(5y)6.5%
ROICexc(3y)7.09%
ROICexc(5y)6.95%
ROICexgc(3y)7.8%
ROICexgc(5y)7.75%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y8.13%
ROICexcg growth 5Y6.88%
ROICexc growth 3Y9.28%
ROICexc growth 5Y7.91%
OM growth 3Y3.22%
OM growth 5Y3.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.23%
GM growth 5Y-5.88%
F-Score4
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 9.24 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 116.36% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.02 |
F-Score4
WACC9.15%
ROIC/WACC0.75
Cap/Depr(3y)80.35%
Cap/Depr(5y)87.47%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-236.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-44.76%
EPS Next Y204.68%
EPS Next 2Y89.31%
EPS Next 3Y58.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y7.19%
Revenue growth 5Y5.6%
Sales Q2Q%-21.9%
Revenue Next Year-8.02%
Revenue Next 2Y-3.31%
Revenue Next 3Y-1.43%
Revenue Next 5YN/A
EBIT growth 1Y-16.12%
EBIT growth 3Y10.64%
EBIT growth 5Y9.07%
EBIT Next Year124.34%
EBIT Next 3Y41.78%
EBIT Next 5YN/A
FCF growth 1Y145.41%
FCF growth 3Y-28.65%
FCF growth 5YN/A
OCF growth 1Y325.79%
OCF growth 3Y-9.57%
OCF growth 5Y13.18%