Alcoa Corp Profitability Analysis

AA Stock  USD 31.03  0.59  1.94%   
Considering Alcoa Corp's profitability and operating efficiency indicators, Alcoa Corp may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in April. Profitability indicators assess Alcoa Corp's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2014-12-31
Previous Quarter
-168 M
Current Value
-150 M
Quarterly Volatility
287 M
 
Yuan Drop
 
Covid
As of March 19, 2024, Price To Sales Ratio is expected to decline to 0.43. In addition to that, Operating Cash Flow Sales Ratio is expected to decline to 0.01. At present, Alcoa Corp's Interest Income is projected to decrease significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 345.7 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (3.8 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.00950.01
Notably Down
Slightly volatile
For Alcoa Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alcoa Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alcoa Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alcoa Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alcoa Corp over time as well as its relative position and ranking within its peers.
  
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Is Alcoa Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alcoa Corp. If investors know Alcoa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alcoa Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.81
Dividend Share
0.4
Earnings Share
(3.65)
Revenue Per Share
59.275
Quarterly Revenue Growth
(0.03)
The market value of Alcoa Corp is measured differently than its book value, which is the value of Alcoa that is recorded on the company's balance sheet. Investors also form their own opinion of Alcoa Corp's value that differs from its market value or its book value, called intrinsic value, which is Alcoa Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alcoa Corp's market value can be influenced by many factors that don't directly affect Alcoa Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alcoa Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alcoa Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alcoa Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Alcoa Corp Net Income vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Alcoa Corp's current stock value. Our valuation model uses many indicators to compare Alcoa Corp value to that of its competitors to determine the firm's financial worth.
Alcoa Corp is number one stock in gross profit category among related companies. It is number one stock in net income category among related companies . At present, Alcoa Corp's Gross Profit is projected to decrease significantly based on the last few years of reporting.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Alcoa Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alcoa Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alcoa Corp's earnings, one of the primary drivers of an investment's value.

Alcoa Net Income vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Alcoa Corp

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.31 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Alcoa Corp

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(773 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Alcoa Net Income Comparison

Alcoa Corp is currently under evaluation in net income category among related companies.

Alcoa Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Alcoa Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alcoa Corp will eventually generate negative long term returns. The profitability progress is the general direction of Alcoa Corp's change in net profit over the period of time. It can combine multiple indicators of Alcoa Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-3.6 B-3.8 B
Operating Income-355 M-337.2 M
Income Before Tax-584 M-554.8 M
Total Other Income Expense Net-229 M-240.4 M
Net Loss-773 M-811.6 M
Income Tax Expense189 M179.6 M
Net Loss-773 M-734.4 M
Net Loss-117.3 M-123.2 M
Interest Income95.4 M152.9 M
Net Interest Income-107 M-112.3 M
Non Operating Income Net Other135.7 M74.8 M
Change To Netincome278.1 M345.7 M
Net Income Per E B T 1.11  1.39 

Alcoa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Alcoa Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alcoa Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alcoa Corp's important profitability drivers and their relationship over time.

Alcoa Corp Profitability Trends

Alcoa Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Alcoa Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Alcoa Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Alcoa Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Alcoa Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Alcoa Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Alcoa Corp's future profitability.

Use Alcoa Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alcoa Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alcoa Corp will appreciate offsetting losses from the drop in the long position's value.

Alcoa Corp Pair Trading

Alcoa Corp Pair Trading Analysis

The ability to find closely correlated positions to Alcoa Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alcoa Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alcoa Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alcoa Corp to buy it.
The correlation of Alcoa Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alcoa Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alcoa Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alcoa Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Alcoa Corp position

In addition to having Alcoa Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Restaurants
Restaurants Theme
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 39 constituents at this time.
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When determining whether Alcoa Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Alcoa Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Alcoa Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Alcoa Corp Stock:
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For information on how to trade Alcoa Stock refer to our How to Trade Alcoa Stock guide.
Note that the Alcoa Corp information on this page should be used as a complementary analysis to other Alcoa Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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When running Alcoa Corp's price analysis, check to measure Alcoa Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alcoa Corp is operating at the current time. Most of Alcoa Corp's value examination focuses on studying past and present price action to predict the probability of Alcoa Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alcoa Corp's price. Additionally, you may evaluate how the addition of Alcoa Corp to your portfolios can decrease your overall portfolio volatility.
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To fully project Alcoa Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alcoa Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Alcoa Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Alcoa Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Alcoa Corp investors may work on each financial statement separately, they are all related. The changes in Alcoa Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Alcoa Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.