-0.31 | -3.49%
ALCOA INC's gross profit margin for the first quarter of its fiscal year 2012 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ALCOA INC has weak liquidity. Currently, the Quick Ratio is 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.27% 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.
| Income Statement | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Net Sales ($mil) | 6006.0 | 5958.0 |
| EBITDA ($mil) | 624.0 | 955.0 |
| EBIT ($mil) | 255.0 | 594.0 |
| Net Income ($mil) | 94.0 | 308.0 |
| Balance Sheet | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 1749.0 | 887.0 |
| Total Assets ($mil) | 40703.0 | 40336.0 |
| Total Debt ($mil) | 9743.0 | 9294.0 |
| Equity ($mil) | 14142.0 | 14774.0 |
| Profitability | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Gross Profit Margin | 15.12 | 20.86 |
| EBITDA Margin | 10.39 | 16.03 |
| Operating Margin | 4.25 | 9.97 |
| Sales Turnover | 0.61 | 0.55 |
| Return on Assets | 0.98 | 1.89 |
| Return on Equity | 2.81 | 5.16 |
| Debt | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Current Ratio | 1.25 | 1.26 |
| Debt/Capital | 0.41 | 0.39 |
| Interest Expense | 146.0 | 139.0 |
| Interest Coverage | 1.75 | 4.27 |
| Share Data | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Shares outstanding (mil) | 1066.59 | 1063.47 |
| Div / share | 0.03 | 0.03 |
| EPS | 0.09 | 0.27 |
| Book value / share | 13.26 | 13.89 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2.4603128E7 | 2.7920356E7 |
HOLD. ALCOA INC's P/E ratio indicates a significant premium compared to an average of 12.88 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 15.19. For additional comparison, its price-to-book ratio of 0.65 indicates a discount versus the S&P 500 average of 2.12 and a discount versus the industry average of 2.01. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AA 25.38 | Peers 12.88 | AA 4.19 | Peers 9.05 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AA is trading at a significant premium to its peers. |
Discount. 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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AA 9.10 | Peers 10.13 | AA NA | Peers 0.34 | |||||||||||||||||||||
|
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 |
|
Earnings Growth |
|
|||||||||||||||||||||
| AA 0.65 | Peers 2.01 | AA -51.43 | Peers 38.83 | |||||||||||||||||||||
|
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 significant 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 |
|
Sales Growth |
|
|||||||||||||||||||||
| AA 0.37 | Peers 14.55 | AA 13.19 | Peers 22.03 | |||||||||||||||||||||
|
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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