Alcoa Corporation [NYSE: AA] shares went lower by -4.51% from its previous closing of $16.29, now trading at the price of $15.56, also adding -0.73 points. Is AA stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 4.17 million contracts. Compared to the average trading volume of AA shares, the company saw a far better performance. Moreover, the stock has a 185.05M float and a -12.43% run over in the last seven days. AA share price has been hovering between $31.45 and $15.94 lately, and is definitely worthy of attention.
Alcoa Corporation [NYSE:AA]: Analyst Rating and Earnings
Its stock price has been found in the range of 15.94 to 31.45. This is compared to its latest closing price of $16.29.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Wed 15 Apr (In 82 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 +8.40 and its Gross Margin at +11.34, this company’s Net Margin is now -4.90%. 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 10.40, and its Return on Invested Capital has reached 14.50%. Its Return on Equity is -23.76, and its Return on Assets is -7.36. 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.
Similarly, its Total Debt to Total Assets stands at 12.30.
What about valuation? This company’s Enterprise Value to EBITDA is 3.05 and its Total Debt to EBITDA Value is 1.13. The Enterprise Value to Sales for this firm is now 0.46. Alcoa Corporation [AA] has a Price to Book Ratio of 0.98, a Price to Cash Flow Ratio of 5.82.
Similarly, this company’s Total Asset Turnover is 0.68. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.74 and its Current Ratio is 1.38. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Alcoa Corporation [AA] has 210.62M shares outstanding, amounting to a total market cap of $3.43B. Its stock price has been found in the range of 15.94 to 31.45. At its current price, it has moved down by -50.54% from its 52-week high, and it has moved down -2.42% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 20.02. This stock, according to these metrics, is currently 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.