The share price of Alcoa Corporation [NYSE: AA] inclined by $20.35, presently trading at $20.69. The company’s shares saw 25.70% gains compared to the lowest price in the period of the last 52 weeks, set at $16.46 recorded on Dec 2, 2019. The last few days have been benevolent to the share price as AA jumped by +1.71% during the last week, even though the stock is still down by -0.81% compared to 0.23 of all time high it touched on 12/02/19. However, the stock had a strong performance during the past 3 months, roughly losing -4.42%, while additionally dropping -39.43% during the last 12 months. Alcoa Corporation is said to have a 12-month price target set at $25.42. That means that the stock has a strong potential to acquire 4.73% increase from the current trading price.

Alcoa Corporation [NYSE:AA]: Analyst Rating and Earnings

Its stock price has been found in the range of 16.46 to 33.47. This is compared to its latest closing price of $20.35.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 15 Jan (In 44 Days).

Fundamental Analysis of Alcoa Corporation [AA]

Now let’s turn

to look at profitability: with a current Operating Margin for Alcoa Corporation [AA] sitting at +4.13 and its Gross Margin at +7.60, this company’s Net Margin is now -6.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is -2.83, and its Return on Invested Capital has reached 14.20%. Its Return on Equity is -4.52, and its Return on Assets is -1.50. These metrics suggest that this Alcoa Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Alcoa Corporation [AA] has generated a Total Debt to Total Equity ratio of 25.56. Similarly, its Total Debt to Total Capital is 20.35, while its Total Debt to Total Assets stands at 8.63. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 1.45, and its Long-Term Debt to Total Capital is 25.19.

What about valuation? This company’s Enterprise Value to EBITDA is 5.99 and its Total Debt to EBITDA Value is 1.31. The Enterprise Value to Sales for this firm is now 0.51, and its Total Debt to Enterprise Value stands at 0.19. Alcoa Corporation [AA] has a Price to Book Ratio of 0.91.

Shifting the focus to workforce efficiency, Alcoa Corporation [AA] earns $666,071 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.92 and its Total Asset Turnover is 0.35. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.72 and its Current Ratio is 1.13. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Alcoa Corporation [AA] has 187.85M shares outstanding, amounting to a total market cap of $3.82B. Its stock price has been found in the range of 16.46 to 33.47. At its current price, it has moved down by -38.18% from its 52-week high, and it has moved up 25.70% from its 52-week low.

This stock’s Relative Strength Index (RSI) is at 49.60. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Alcoa Corporation [AA] a Reliable Buy?

Alcoa Corporation [AA] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.