ALCOA INC's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. ALCOA INC has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.59% 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||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||5573.0||6239.0|
|Net Income ($mil)||44.0||149.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||1739.0||3290.0|
|Total Assets ($mil)||36587.0||37122.0|
|Total Debt ($mil)||9277.0||8988.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||18.19||21.4|
|Return on Assets||1.47||-6.0|
|Return on Equity||3.7||-17.99|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||1310.02||1177.67|
|Div / share||0.03||0.03|
|Book value / share||9.61||10.53|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.8282992E7||2.0043826E7|
HOLD. ALCOA INC's P/E ratio indicates a premium compared to an average of 28.87 for the Metals & Mining industry and a premium compared to the S&P 500 average of 21.21. Conducting a second comparison, its price-to-book ratio of 1.15 indicates a significant discount versus the S&P 500 average of 2.68 and a discount versus the industry average of 1.38. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|AA 29.76||Peers 28.87||AA 6.33||Peers 7.00|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
AA is trading at a valuation on par with 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 14.68||Peers 35.45||AA 0.12||Peers 0.44|
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 1.15||Peers 1.38||AA 117.53||Peers -99.86|
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.
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 0.61||Peers 2.23||AA 2.38||Peers -7.84|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AA has a sales growth rate that significantly exceeds its peers.
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