Alcoa Z Score
AA   USA Stock  USD 38.27 0.69 1.77% 
Alcoa Z Score Analysis
Alcoa Corp's ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..2018  2019  2020  2021 (projected)  
Interest Expense  122 M  121 M  146 M  162.11 M 
Gross Profit  3.35 B  1.9 B  1.32 B  1.59 B 
Z Score  =  Sum Of   5 Factors 
Current Alcoa Corp Z Score  1.2 
Most of Alcoa Corp's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Alcoa Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
 
 
 
 

Alcoa Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Alcoa Corp is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Alcoa Corp's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Alcoa Corp's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Alcoa Corp's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition 
In accordance with the company's disclosures, Alcoa Corp has a Z Score of 1.2. This is 52.19% lower than that of the Basic Materials sector and 67.48% lower than that of the Aluminum industry. The z score for all United States stocks is 86.24% higher than that of the company.
Alcoa Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Alcoa Corp's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Alcoa Corp could also be used in its relative valuation, which is a method of valuing Alcoa Corp by comparing valuation metrics of similar companies.Alcoa Corp is currently under evaluation in z score category among related companies.
Alcoa Corp Current Valuation Drivers
We derive many important indicators used in calculating different scores of Alcoa Corp from analyzing Alcoa Corp's financial statements. These drivers represent accounts that assess Alcoa Corp's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Alcoa Corp's important valuation drivers and their relationship over time.
2016  2017  2018  2019  2020  2021 (projected)  
Net Income Per Employee  (28.49 K)  14.86 K  16.21 K  (81.52 K)  (13.14 K)  (14.18 K)  
Revenue Per Employee  663.75 K  798.08 K  957.36 K  756.01 K  717.88 K  700.15 K  
Average Assets  16.58 B  17.18 B  16.48 B  15.15 B  14.02 B  14.18 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  745 M  1.73 B  1.84 B  124 M  816 M  840.09 M  
Earnings Before Interest Taxes and Depreciation Amortization USD  745 M  1.73 B  1.84 B  124 M  816 M  840.09 M  
Earnings before Tax  (216 M)  871 M  982 M  (710 M)  17 M  18.34 M  
Average Equity  7.55 B  5.55 B  5.31 B  4.68 B  3.67 B  4.51 B  
Free Cash Flow  (715 M)  819 M  49 M  307 M  41 M  42.08 M  
Invested Capital  14.51 B  14.24 B  13.9 B  12.99 B  12.96 B  12.72 B  
Invested Capital Average  14.09 B  14.73 B  14.15 B  13.47 B  12.5 B  12.45 B  
Tangible Asset Value  16.74 B  17.45 B  16.13 B  14.63 B  14.86 B  14.72 B  
Working Capital  360 M  986 M  1.41 B  967 M  1.76 B  1.41 B 
Alcoa Fundamentals
Return On Equity  1.24 %  
Return On Asset  2.60 %  
Profit Margin  (0.77) %  
Operating Margin  12.89 %  
Current Valuation  8.91 B  
Shares Outstanding  186.72 M  
Shares Owned by Insiders  0.96 %  
Shares Owned by Institutions  82.13 %  
Number of Shares Shorted  10 M  
Price to Earning  23.58 X  
Price to Book  2.13 X  
Price to Sales  0.71 X  
Revenue  9.77 B  
Gross Profit  1.36 B  
EBITDA  1.26 B  
Net Income  (75 M)  
Cash and Equivalents  2.54 B  
Cash per Share  13.62 X  
Total Debt  3.09 B  
Debt to Equity  0.63 %  
Current Ratio  1.52 X  
Book Value Per Share  17.40 X  
Cash Flow from Operations  490 M  
Short Ratio  1.64 X  
Earnings Per Share  (0.40) X  
Price to Earnings To Growth  0.04 X  
Number of Employees  12.9 K  
Beta  2.71  
Market Capitalization  6.92 B  
Total Asset  16.41 B  
Retained Earnings  (569.61 M)  
Working Capital  162 M  
Current Asset  2.57 B  
Current Liabilities  2.4 B  
Z Score  1.2  
Last Dividend Paid  0.09 
About Alcoa Corp Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Alcoa Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alcoa Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alcoa Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania. Alcoa Corp operates under Aluminum classification in the United States and is traded on New York Stock Exchange. It employs 12900 people.
Alcoa Corp Investors Sentiment
The influence of Alcoa Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decisionmaking process regarding taking a position in Alcoa. The overall investor sentiment generally increases the direction of a stock movement in a oneyear investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.Pair Trading with Alcoa Corp
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 Correlation
Equities Pair Trading Analysis
Correlation analysis and pair trading evaluation for Alcoa Corp and Aluminum Corp. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better riskadjusted return
Run Pair Correlation 
Please continue to Alcoa Corp Piotroski F Score and Alcoa Corp Valuation analysis. 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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When running Alcoa Corp 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 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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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 underlying business (such as 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 Alcoa Corp value 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.