Alcoa has moved -2.7% so far today on a volume of 1,044,279, compared to its average of 6,690,633. In contrast, the S&P 500 index moved -0.7%.
Over the last 52 weeks, the stock moved -24.8%, with a high of $98.09 and a low of $33.55. During this time, the stock lagged the S&P 500 index by -4.7%. 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 mid-cap Basic Materials company has 12,200 full time employees and is based in Pittsburgh, PA. Alcoa has returned a 0.9% dividend yield over the last 12 months.
Overview of the Company's an Irregular Stream of Positive Cash Flows with an Upwards Trend:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $13,403 | $10,433 | $9,286 | $12,152 |
| Revenue Growth | n/a | -22.2% | -11.0% | 30.9% |
| Gross Margins | 24.79% | 18.17% | 14.18% | 24.68% |
| Gross Margins Growth | n/a | -26.7% | -21.96% | 74.05% |
| Operating Margins | 16.38% | 7.02% | 4.61% | 16.78% |
| Operating Margins Growth | n/a | -57.14% | -34.33% | 263.99% |
| Earnings Per Share | $1.33 | $-6.07 | $-0.91 | $2.26 |
| EPS Growth | n/a | -556.39% | 85.01% | 348.35% |
| Free Cash Flow (MM) | $49 | $307 | $41 | $530 |
| FCF Growth | n/a | 526.53% | -86.64% | 1192.68% |
| Capital Expenditures (MM) | $-399 | $-379 | $-353 | $-390 |
| Net Debt / EBITDA | 0.25 | 0.71 | 0.92 | -0.0 |
The Market Is Fairly Valuing Alcoa:
Compared to the Basic Materials sector's average of 8.57, Alcoa has a trailing twelve month price to earnings (P/E) ratio of 8.5 and, based on its Eps guidance of 3.23, an expected P/E ratio of 13.5.
The firm's price to earnings growth (PEG) is 0.73, which indicates that the company is undervalued in terms of its expected earnings growth.
Alcoa is undervalued in terms of its assets because its price to book (P/B) ratio is 1.4 compared to its sector average of 1.86. As of the date of publication, the company is trading -26.3% below its Graham number, implying there is a margin of safety for the stock. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 5.14 * 30.355) = $59.25
Alcoa Is the Subject of Mixed Market Indicators:
11 analysts are following Alcoa and have set target prices ranging from $41 to $62 per share. On average, they have given the company a rating of buy. At today's prices, AA is trading -13.13% away from its average analyst target price of $50.27 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 4.2% of the company's shares are tied to short positions. Institutions own 83.4% of Alcoa's shares, while the insider ownership rate stands at 0.89%. The biggest shareholder is Blackrock Inc. with a 13% stake in the company worth approximately $978,623,854.
