ALCOA INC's gross profit margin for the third quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ALCOA INC has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.57% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||6239.0||5765.0|
|Net Income ($mil)||149.0||24.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||3290.0||1076.0|
|Total Assets ($mil)||37122.0||38229.0|
|Total Debt ($mil)||8988.0||8344.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||21.4||16.77|
|Return on Assets||-6.0||0.77|
|Return on Equity||-17.99||2.28|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1177.67||1069.59|
|Div / share||0.03||0.03|
|Book value / share||10.53||12.02|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.0030108E7||1.6553495E7|
BUY. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.50 indicates a discount versus the S&P 500 average of 2.76 and a discount versus the industry average of 1.58. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ALCOA INC proves to trade at a discount to investment alternatives within the industry.
|AA NM||Peers 22.53||AA 15.15||Peers 9.29|
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.
|AA 15.47||Peers 18.13||AA NA||Peers 0.46|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
AA is trading at a valuation on par with 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.
|AA 1.50||Peers 1.58||AA -944.00||Peers -91.05|
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.
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.
|AA 0.80||Peers 2.28||AA -0.99||Peers 1000.85|
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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