Arconic Corporation (ARNC) Stock Fundamental Analysis
NYSE:ARNC - New York Stock Exchange, Inc. - US03966V1070 - Common Stock - Currency: USD
Overall ARNC gets a fundamental rating of 3 out of 10. We evaluated ARNC against 152 industry peers in the Metals & Mining industry. Both the profitability and financial health of ARNC have multiple concerns. ARNC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARNC had negative earnings in the past year.
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.
With a decent Return On Invested Capital value of 6.84%, ARNC is doing good in the industry, outperforming 72.97% of the companies in the same industry.
ARNC had an Average Return On Invested Capital over the past 3 years of 6.44%. This is below the industry average of 8.61%.
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.
ARNC's Operating Margin has improved in the last couple of years.
ARNC has a Gross Margin (10.75%) which is comparable to the rest of the 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
ARNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ARNC has been reduced compared to 1 year ago.
The debt/assets ratio for ARNC is higher compared to a year ago.
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.
With a Altman-Z score value of 2.02, ARNC is not doing good in the industry: 60.14% of the companies in the same industry are doing better.
The Debt to FCF ratio of ARNC is 9.24, which is on the high side as it means it would take ARNC, 9.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARNC (9.24) is better than 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.
ARNC has a Debt to Equity ratio of 1.08. This is amonst the worse of the industry: ARNC underperforms 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
ARNC has a Current Ratio of 1.62. This is a normal value and indicates that ARNC is financially healthy and should not expect problems in meeting its short term obligations.
ARNC has a worse Current ratio (1.62) than 77.03% of its industry peers.
ARNC has a Quick Ratio of 1.62. This is a bad value and indicates that ARNC is not financially healthy enough and could expect problems in meeting its short term obligations.
ARNC's Quick ratio of 0.80 is on the low side compared to the rest of the industry. ARNC is outperformed by 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%.
Looking at the last year, ARNC shows a decrease in Revenue. The Revenue has decreased by -7.14% in the last 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
ARNC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 58.56% yearly.
ARNC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.43% yearly.
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
The Price/Earnings Ratio is negative for ARNC. In the last year negative earnings were reported.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.65. ARNC is valued rather cheaply when compared to this.
| 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.
83.11% of the companies in the same industry are more expensive than ARNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 7.5 |
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 ARNC's earnings are expected to grow with 58.56% in the coming years.
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%