The long-term trend of the EPS is a vital number as it helps understand the future potential of Alcoa Corporation. It is typically displayed as a percentage and called the EPS growth rate, which is -11.61%. EPS growth is a vital measure of execution of the strategy for Alcoa Corporation since it indicates how well the business is allocating resources to benefit shareholders.
Alcoa Corporation is part of the basic materials sector and trades as part of the metals and mining industry. The company CEO is Roy Christopher Harvey. Alcoa Corp is an integrated aluminum company. The company engages in aluminum production from bauxite mining to manufactures finished aluminum goods. It serves finished aluminum goods to a wide-variety of industrial end markets.
Previous Intraday Performance:
The AA shares had a previous change of 2.65% which opened at 31.04 and closed at 31.81. It moved to an intraday high of 32.46 and a low of 30.94.
SeekingAlpha: Alcoa Corporation (AA) Presents at Goldman Sachs Global Metals & Mining Conference (Transcript)
Historical Performance:
Over the last five trading days, AA shares returned -2.33% and in the past 30 trading days it returned -17.59%. Over three months, it changed -27.49%. In one year it has changed -24.33% and within that year its 52-week high was 62.35 and its 52-week low was 30.94. AA stock is 2.81% above its 52 Week Low.
Our calculations result in a 200 day moving average of 44.54 and a 50 day moving average of 36.85. Right now, AA stock is trading -28.58% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.
SeekingAlpha: Alcoa Corporation (AA) Presents at Goldman Sachs Global Metals & Mining Conference (Transcript)
Liquidity:
The company has a market cap of $5.9b with 186.5m shares outstanding and a float of 186.0m shares. Trading volume was 5,353,548 shares and has experienced an average volume of 3,819,894 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.
Earnings:
The last annual reported EPS for Alcoa Corporation was 1.16 which ended on 31st of December 2017, which according to the previous close, that is a PE of 27.42. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.25. The trailing twelve month EPS is 3.96, which comes to a trailing twelve month PE of 8.03.
Below was the last reported quarterly earnings per share:
09-30-2018: 0.63
06-30-2018: 1.52
03-31-2018: 0.77
12-31-2017: 1.04
Base on our calculations, the intrinsic value per share is 54.92, which means it might be undervalued and has a margin of safety of 42.08%
Indicators Also to Watch:
Based on the latest filings, there is 0.20% of insider ownership and 133.70% of institutional ownership. Short-interest was 6,065,399, which was 3.25% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.61. This stock has some short interest, but it might be normal and no need to worry if long the position.
I calculated the beta to be 1.20
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Fundamental Numbers:
Based on last reported financials, the company’s return on equity is -0.22%, return on assets is -0.07%, profit margin is 4.56%, price-to-sales is 0.44 and price-to-book is 1.14.
Company Score Card:
Results are out of six:
3 : Growth Expectations Result
4 : Financial Safety Result
1 : Past Performance Result
3 : Valuation Result
0 : Dividend Safety Result
2 : Overall Result
Related Tags: AA, Alcoa Corporation, Basic Materials, Metals And Mining
