Alcoa Corporation
Find Ratings ReportsALCOA CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ALCOA CORP has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 16.25% 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 | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 2595.0 | 2663.0 |
EBITDA ($mil) | 92.0 | -6.0 |
EBIT ($mil) | -71.0 | -153.0 |
Net Income ($mil) | -150.0 | -395.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 976.0 | 1418.0 |
Total Assets ($mil) | 14155.0 | 14756.0 |
Total Debt ($mil) | 2002.0 | 1896.0 |
Equity ($mil) | 4251.0 | 5076.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 6.55 | 2.52 |
EBITDA Margin | 3.54 | -0.22 |
Operating Margin | -2.74 | -5.75 |
Sales Turnover | 0.75 | 0.84 |
Return on Assets | -4.59 | -0.83 |
Return on Equity | -15.31 | -2.42 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.45 | 1.75 |
Debt/Capital | 0.32 | 0.27 |
Interest Expense | 28.0 | 26.0 |
Interest Coverage | -2.54 | -5.88 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 178.47 | 176.97 |
Div / share | 0.1 | 0.1 |
EPS | -0.84 | -2.23 |
Book value / share | 23.82 | 28.68 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 6358860.0 | 5917842.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 1.26 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.56. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, ALCOA CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AA NM | Peers 15.23 | AA 58.88 | Peers 9.34 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. AA's P/E is negative making this valuation measure meaningless. |
Premium. 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 significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AA 13.49 | Peers 11.93 | AA NA | Peers 0.43 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. AA is trading at a significant premium to its peers. |
Neutral. 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. Ratio not available. |
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Price/Book |
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Earnings Growth |
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AA 1.26 | Peers 1.56 | AA -280.20 | Peers 0.85 | |||||||||||||||||||||
Discount. 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 discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AA is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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AA 0.51 | Peers 0.92 | AA -15.26 | Peers -2.96 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AA significantly trails its peers on the basis of sales growth. |
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