Alcoa Z Score

AA -  USA Stock  

USD 38.27  0.69  1.77%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please continue to Alcoa Corp Piotroski F Score and Alcoa Corp Valuation analysis.

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Alcoa Corp Return on Invested Capital is projected to increase slightly based on the last few years of reporting. The past year's Return on Invested Capital was at 0.013. The current year Market Capitalization is expected to grow to about 4.6 B, whereas Capital Expenditure is forecasted to decline to (380.9 M). Alcoa Corp Direct Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Direct Expenses was at 7.97 Billion. The current year Cost of Revenue is expected to grow to about 8.1 B, whereas Consolidated Income is forecasted to decline to (15.1 M).

Alcoa Z Score Analysis

Alcoa Corp's Z-Score is a simple linear, multi-factor 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 Expense122 M121 M146 M162.11 M
Gross Profit3.35 B1.9 B1.32 B1.59 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

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.
First Factor
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1.2 * (
Working Capital
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Total Assets )
Second Factor
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1.4 * (
Retained Earnings
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Total Assets )
Thrid Factor
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3.3 * (
EBITAD
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Total Assets )
Fouth Factor
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0.6 * (
Market Value of Equity
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Total Liabilities )
Fifth Factor
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0.99 * (
Revenue
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Total Assets )

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.
To calculate Z-Score 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. Z-Score 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 Z-Scores 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 so-called '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.
201620172018201920202021 (projected)
Net Income Per Employee(28.49 K)14.86 K16.21 K(81.52 K)(13.14 K)(14.18 K)
Revenue Per Employee663.75 K798.08 K957.36 K756.01 K717.88 K700.15 K
Average Assets16.58 B17.18 B16.48 B15.15 B14.02 B14.18 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA745 M1.73 B1.84 B124 M816 M840.09 M
Earnings Before Interest Taxes and Depreciation Amortization USD745 M1.73 B1.84 B124 M816 M840.09 M
Earnings before Tax(216 M)871 M982 M(710 M)17 M18.34 M
Average Equity7.55 B5.55 B5.31 B4.68 B3.67 B4.51 B
Free Cash Flow(715 M)819 M49 M307 M41 M42.08 M
Invested Capital14.51 B14.24 B13.9 B12.99 B12.96 B12.72 B
Invested Capital Average14.09 B14.73 B14.15 B13.47 B12.5 B12.45 B
Tangible Asset Value16.74 B17.45 B16.13 B14.63 B14.86 B14.72 B
Working Capital360 M986 M1.41 B967 M1.76 B1.41 B

Alcoa Fundamentals

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 decision-making process regarding taking a position in Alcoa. The overall investor sentiment generally increases the direction of a stock movement in a one-year 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.

Current Sentiment - AA

Alcoa Corp Investor Sentiment

Nearly all of Macroaxis users are presently bullish on Alcoa Corp. What is your sentiment towards investing in Alcoa Corp? Are you bullish or bearish?
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2% Bearish
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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 risk-adjusted return
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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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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.