Alcoa Fundamentals

AA
 Stock
  

USD 51.98  1.14  2.15%   

Alcoa Corp fundamentals help investors to digest information that contributes to Alcoa Corp's financial success or failures. It also enables traders to predict the movement of Alcoa Stock. The fundamental analysis module provides a way to measure Alcoa Corp's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Alcoa Corp stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Alcoa Corp Direct Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Direct Expenses was at 9.15 Billion. The current year Consolidated Income is expected to grow to about 615 M, whereas Cost of Revenue is forecasted to decline to about 8.7 B.

Alcoa Return On Equity Analysis

Alcoa Corp's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 2019 2020 2021 2022 (projected)
Interest Expense121 M146 M195 M187.54 M
Gross Profit1.9 B1.32 B3 B2.86 B
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current Alcoa Corp Return On Equity

    
  19.32 %  
Most of Alcoa Corp's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Alcoa Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Alcoa Return On Equity Historical Pattern

Today, most investors in Alcoa Corp Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Alcoa Corp's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Alcoa Corp return on equity as a starting point in their analysis.
   Alcoa Corp Return On Equity   
Share
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

Alcoa Shareholders Equity

Shareholders Equity

4.98 Billion

Alcoa Corp Shareholders Equity is projected to decrease significantly based on the last few years of reporting. The past year's Shareholders Equity was at 4.67 Billion
Based on the latest financial disclosure, Alcoa Corp has a Return On Equity of 19.32%. This is much higher than that of the Basic Materials sector and notably higher than that of the Aluminum industry. The return on equity for all United States stocks is notably lower than that of the firm.

Alcoa Corp Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Alcoa Corp's current stock value. Our valuation model uses many indicators to compare Alcoa Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Alcoa Corp competition to find correlations between indicators driving Alcoa Corp's intrinsic value. More Info.
Alcoa Corp is number one stock in beta category among related companies. It is number one stock in total asset category among related companies fabricating about  6,867,364,017  of Total Asset per Beta. Alcoa Corp Total Assets Per Share are projected to drop based on the last few years of reporting. The past year's Total Assets Per Share were at 81.61. The current year Net Current Assets as percentage of Total Assets is expected to grow to 12.95, whereas Total Assets are forecasted to decline to about 14.7 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Alcoa Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alcoa Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alcoa Corp's earnings, one of the primary drivers of an investment's value.

Alcoa Working Capital Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Alcoa Corp's direct or indirect competition against its Working Capital to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Alcoa Corp could also be used in its relative valuation, which is a method of valuing Alcoa Corp by comparing valuation metrics of similar companies.
Alcoa Corp is currently under evaluation in working capital category among related companies.

Alcoa Corp Current Valuation Drivers

We derive many important indicators used in calculating different scores of Alcoa Corp from analyzing Alcoa Corp's financial statements. These drivers represent accounts that assess Alcoa Corp's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Alcoa Corp's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee14.86 K16.21 K(81.52 K)(13.14 K)35.16 K37.94 K
Revenue Per Employee798.08 K957.36 K756.01 K717.88 K996.07 K860.43 K
Average Assets17.18 B16.48 B15.15 B14.02 B14.65 B14.42 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.73 B1.84 B124 M816 M1.92 B2.07 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.73 B1.84 B124 M816 M1.92 B2.07 B
Earnings before Tax871 M982 M(710 M)17 M1.06 B1.14 B
Average Equity5.55 B5.31 B4.68 B3.67 B3.89 B4.49 B
Enterprise Value10.25 B5.76 B4.96 B5.09 B11.42 B10.12 B
Free Cash Flow819 M49 M307 M41 M530 M571.84 M
Invested Capital14.24 B13.9 B12.99 B12.96 B11.71 B11.95 B
Invested Capital Average14.73 B14.15 B13.47 B12.5 B11.93 B12.03 B
Market Capitalization9.97 B4.96 B3.99 B4.29 B11.15 B9.68 B
Tangible Asset Value17.45 B16.13 B14.63 B14.86 B15.03 B14.74 B
Working Capital986 M1.41 B967 M1.76 B1.8 B1.5 B

Alcoa Corp ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Alcoa Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Alcoa Corp's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Alcoa Fundamentals

About Alcoa Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alcoa Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alcoa Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alcoa Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Cost of Revenue9.2 B8.7 B
Revenues12.2 B11.2 B
Revenue to Assets 0.81  0.72 
Revenue Per Employee996.1 K860.4 K
Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania. Alcoa Corp operates under Aluminum classification in the United States and is traded on New York Stock Exchange. It employs 12200 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Alcoa Corp without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Alcoa Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alcoa Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alcoa Corp will appreciate offsetting losses from the drop in the long position's value.

Moving together with Alcoa Corp

0.68ARCHArch Resources Normal TradingPairCorr
The ability to find closely correlated positions to Alcoa Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alcoa Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alcoa Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alcoa Corp to buy it.
The correlation of Alcoa Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alcoa Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alcoa Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alcoa Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Alcoa Corp Piotroski F Score and Alcoa Corp Altman Z Score analysis. Note that the Alcoa Corp information on this page should be used as a complementary analysis to other Alcoa Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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Is Alcoa Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alcoa Corp. If investors know Alcoa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alcoa Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.81
Market Capitalization
9.6 B
Quarterly Revenue Growth YOY
0.29
Return On Assets
0.12
Return On Equity
0.19
The market value of Alcoa Corp is measured differently than its book value, which is the value of Alcoa that is recorded on the company's balance sheet. Investors also form their own opinion of Alcoa Corp's value that differs from its market value or its book value, called intrinsic value, which is Alcoa Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alcoa Corp's market value can be influenced by many factors that don't directly affect Alcoa Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alcoa Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Alcoa Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alcoa Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.