ALCOA INC's gross profit margin for the first quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ALCOA INC has weak liquidity. Currently, the Quick Ratio is 0.67 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.60% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||5819.0||5454.0|
|Net Income ($mil)||195.0||-178.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||1191.0||689.0|
|Total Assets ($mil)||35694.0||35605.0|
|Total Debt ($mil)||8817.0||7747.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||23.65||17.6|
|Return on Assets||1.79||-7.33|
|Return on Equity||5.21||-22.94|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||1222.31||1171.1|
|Div / share||0.03||0.03|
|Book value / share||9.47||9.73|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.512296E7||1.7488092E7|
BUY. ALCOA INC's P/E ratio indicates a premium compared to an average of 24.31 for the Metals & Mining industry and a premium compared to the S&P 500 average of 20.57. For additional comparison, its price-to-book ratio of 1.42 indicates a discount versus the S&P 500 average of 2.84 and a discount versus the industry average of 1.49. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|AA 27.45||Peers 24.31||AA 7.90||Peers 8.69|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
AA is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AA is trading at a valuation on par to its peers.
|AA 11.30||Peers 20.91||AA 0.07||Peers 1.40|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
AA is trading at a significant discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AA trades at a significant discount to its peers.
|AA 1.42||Peers 1.49||AA 120.08||Peers 77.95|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AA is trading at a valuation on par with its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AA is expected to have an earnings growth rate that significantly exceeds its peers.
|AA 0.68||Peers 2.31||AA 7.14||Peers 47.94|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AA is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
AA significantly trails its peers on the basis of sales growth
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