Alcoa Z Score
AA  Stock  USD 51.98 1.14 2.15% 
Alcoa  Z Score 
Alcoa Z Score Analysis
Alcoa Corp's ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..2019  2020  2021  2022 (projected)  
Interest Expense  121 M  146 M  195 M  187.54 M 
Gross Profit  1.9 B  1.32 B  3 B  2.86 B 
Z Score  =  Sum Of   5 Factors 
Current Alcoa Corp Z Score  3.0 
Most of Alcoa Corp's fundamental indicators, such as Z Score, 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 Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Alcoa Corp is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Alcoa Corp's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Alcoa Corp's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Alcoa Corp's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition 
In accordance with the company's disclosures, Alcoa Corp has a Z Score of 3.0. This is 19.52% higher than that of the Basic Materials sector and 18.7% lower than that of the Aluminum industry. The z score for all United States stocks is 65.6% higher than that of the company.
Alcoa Z Score 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 Z Score 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 z score 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.
2017  2018  2019  2020  2021  2022 (projected)  
Net Income Per Employee  14.86 K  16.21 K  (81.52 K)  (13.14 K)  35.16 K  37.94 K  
Revenue Per Employee  798.08 K  957.36 K  756.01 K  717.88 K  996.07 K  860.43 K  
Average Assets  17.18 B  16.48 B  15.15 B  14.02 B  14.65 B  14.42 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  1.73 B  1.84 B  124 M  816 M  1.92 B  2.07 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  1.73 B  1.84 B  124 M  816 M  1.92 B  2.07 B  
Earnings before Tax  871 M  982 M  (710 M)  17 M  1.06 B  1.14 B  
Average Equity  5.55 B  5.31 B  4.68 B  3.67 B  3.89 B  4.49 B  
Enterprise Value  10.25 B  5.76 B  4.96 B  5.09 B  11.42 B  10.12 B  
Free Cash Flow  819 M  49 M  307 M  41 M  530 M  571.84 M  
Invested Capital  14.24 B  13.9 B  12.99 B  12.96 B  11.71 B  11.95 B  
Invested Capital Average  14.73 B  14.15 B  13.47 B  12.5 B  11.93 B  12.03 B  
Market Capitalization  9.97 B  4.96 B  3.99 B  4.29 B  11.15 B  9.68 B  
Tangible Asset Value  17.45 B  16.13 B  14.63 B  14.86 B  15.03 B  14.74 B  
Working Capital  986 M  1.41 B  967 M  1.76 B  1.8 B  1.5 B 
Alcoa Corp ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower socialengagement 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
Return On Equity  19.32 %  
Return On Asset  12.04 %  
Profit Margin  7.19 %  
Operating Margin  26.49 %  
Current Valuation  10.96 B  
Shares Outstanding  187.1 M  
Shares Owned by Insiders  0.88 %  
Shares Owned by Institutions  89.02 %  
Number of Shares Shorted  9.34 M  
Price to Earning  12.20 X  
Price to Book  2.55 X  
Price to Sales  0.74 X  
Revenue  13.39 B  
Gross Profit  3.05 B  
EBITDA  3.55 B  
Net Income  963 M  
Cash and Equivalents  1.64 B  
Cash per Share  9.10 X  
Total Debt  1.81 B  
Debt to Equity  0.25 %  
Current Ratio  1.81 X  
Book Value Per Share  20.73 X  
Cash Flow from Operations  1.57 B  
Short Ratio  1.47 X  
Earnings Per Share  4.32 X  
Price to Earnings To Growth  0.03 X  
Number of Employees  12.2 K  
Beta  2.39  
Market Capitalization  9.87 B  
Total Asset  16.41 B  
Retained Earnings  (569.61 M)  
Working Capital  162 M  
Current Asset  2.57 B  
Current Liabilities  2.4 B  
Z Score  3.0  
Last Dividend Paid  0.4 
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.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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Alcoa Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Alcoa Corp's short interest history, or implied volatility extrapolated from Alcoa Corp options trading.
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
0.68  ARCH  Arch Resources  Normal Trading  PairCorr 
The ability to find closely correlated positions to Alcoa Corp could be a great tool in your taxloss harvesting strategies, allowing investors a quick way to find a similarenough 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 riskadjusted return on your portfolios.Please continue to Alcoa Corp Piotroski F Score and Alcoa Corp Valuation 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.
Complementary Tools for Alcoa Stock analysis
When running Alcoa Corp price analysis, check to measure Alcoa Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alcoa Corp is operating at the current time. Most of Alcoa Corp's value examination focuses on studying past and present price action to predict the probability of Alcoa Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alcoa Corp's price. Additionally, you may evaluate how the addition of Alcoa Corp to your portfolios can decrease your overall portfolio volatility.
Efficient FrontierPlot and analyze your portfolio and positions against riskreturn landscape of the market.  Go  
Portfolio ComparatorCompare the composition, asset allocations and performance of any two portfolios in your account  Go  
Equity AnalysisResearch over 250,000 global equities including funds, stocks and ETFs to find investment opportunities  Go  
Idea BreakdownAnalyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sectorfocused investing themes  Go  
Positions RatingsDetermine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and riskadjusted market performance  Go  
Companies DirectoryEvaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals  Go  
Instant RatingsDetermine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and riskadjusted market performance  Go  
Probability Of BankruptcyGet analysis of equity chance of financial distress in the next 2 years  Go 
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.