alcoa inc nyse:aa
Post on 13-Mar-2016
223 Views
Preview:
DESCRIPTION
TRANSCRIPT
ALCOA
AA : NYSE
Date: 07.03.11
Symbol: AA
Exchange: NYSE
Industry: Aluminum
Sector: Basic materials
Recommendation:
Target Price: 23.00USD
Current Price: 16.575 USD
Summary
• Aluminum demand is rising
• China Sales may double over next 5 years
• Company has a long history of beating
estimates
• Full Year 2010 most likely will beat estimates
• Alcoa is the world’s leading producer of primary
aluminum, fabricated aluminum and alumina.
Fundamental Data
Market Cap ($M): 17.61B
Avg.Vol (10Day): 26,935,700
52 Week High/Low: 17.68-9.81
P/E ratio (TTM): 68.49
P/B ratio: 1.25
Dividend yield (%): 0.70
ROA (%): 2.05
ROE (%): 2.45
Profit Margin (%): 1.21
Operating Margin (%): 6.06
SUMMARY
INTRA-DAY INTERACTIVE CHART
Change -0.055 (-0.331%)
Bid N.A.
Ask N.A.
Open 16.770
High 16.800
Low 16.370
Volume N.A.
52-Week Range 17.68 - 9.81
1-Yr Return 20.848%
Earnings
EARNINGS
FUNDAMENTALS
Earnings Past 12 Months 0.530 Shares (Millions) 1,062.689
Quarter Est. EPS (03/11) 0.26 Market Cap (Millions) 17,614.080
Quarter Est. EPS (06/11) 0.31 Float (Millions) 1,058.481
Year Est. EPS (12/11) 1.32 Return on Equity 1.944
Price/Earnings (Trailing) 31.274 Short Interest 55,616,109.000
Relative P/E 2.018 Last Dividend Reported 0.030 Regular Cash
Earnings Growth Rate 139.600 Dividend Yield (ttm) 0.724
Estimated P/E 12.600 Relative Dividend Yield 0.397
Alcoa Corporate Overview
• Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and
alumina.
• In addition to inventing the modern-day aluminum industry, Alcoa innovation has been
behind major milestones in the aerospace, automotive, packaging, building and
construction, commercial transportation, consumer electronics and industrial markets
over the past 120 years.
• Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and
forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings,
and building systems in addition to its expertise in other light metals such as titanium
and nickel-based super alloys.
• Sustainability is an integral part of Alcoa’s operating practices and the product design and
engineering it provides to customers.
• Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive
years and approximately 75 percent of all of the aluminum ever produced since 1888 is
still in active use today.
• Alcoa employs approximately 59,000 people in 31 countries across the world.
Recent news
Alcoa Acquires Full Ownership of Carbothermic Smelting Technology
NEW YORK--(BUSINESS WIRE)--Alcoa (NYSE:AA) today announced that it has finalized a deal with
ORKLA ASA to acquire full ownership of the technology associated with the carbothermic aluminum
production process, previously jointly owned by the companies.
Now in the research and development phase, the carbothermic aluminum production process is a
new technology that holds the potential to produce aluminum at a lower cost, driven by reduced
conversion costs, lower energy requirements, and lower emissions at a lower capital cost than
traditional smelting. The technology also holds potential for significant cost improvements in the
production of other metals.
“Alcoa will continue research on the carbothermic production process that we pioneered and have
advanced with Orkla’s support over the past few years,” said John Thuestad, group president of
Alcoa’s Global Primary Products. “If successful, the carbothermic process would allow for economical
operation of smaller facilities with flexible power supplies that the current generation of smelters
cannot meet. This would improve the ability to site new facilities.”
The research facility will be relocated to Alcoa’s facility in Lista, Norway, and several key research
employees will transfer to Alcoa.
“Alcoa chose the Lista site to continue research on this potentially breakthrough technology because
of the skills of the Alcoa Norway team and the supportive environment Norway provides for
innovation,” said Thuestad. “We believe this is the right place to continue developing Carbothermic
technology.”
Details of the transaction were not disclosed.
Alcoa Wheels Recognized with “Top 20” New Product by Heavy Duty Trucking
Wheel Torque Solutions Selected For Revolutionizing the Wheel Changing Process
CLEVELAND--(BUSINESS WIRE)--Heavy Duty Trucking recognized Alcoa Wheels, a key supplier to
Wheel Torque Solutions, as a “Top 20” new product recently at the TMC Annual Convention in
Tampa, Florida. Heavy Duty Trucking editors, in combination with members of the American Trucking
Associations’ Technology and Maintenance Council (TMC), evaluated hundreds of new products for
those that are innovative and likely to contribute to the bottom line by improving safety, fuel
economy or efficiency.
As a critical component of Wheel Torque Solutions, Alcoa aluminum wheels help to improve the
wheel changing process by providing a more robust mounting surface. In addition, Alcoa aluminum
wheels are not susceptible to paint build-up or corrosion resulting in a more dependable fastening
interface.
“Our engineering, field service and commercial teams worked with a leading fleet company for nearly
two years to develop Wheel Torque Solutions,” stated Mike Parnell, Vice President and General
Manager - Alcoa Commercial Vehicle Wheels. “We’re honored that this system has been recognized
for improving maintenance procedures and reducing wheel-offs in the commercial transportation
market.”
Wheel Torque Solutions, comprised of four leading fleet truck product suppliers, Alcoa Wheels, B&D
Cold Heading, Chicago Pneumatic, and ITW CIP, has revolutionized the wheel changing process.
Wheel Torque Solutions brings together the optimum nut, bolt, wheels and procedures easing the
installation process, increasing torque retention and reducing the potential for costly and dangerous
wheel-off incidents.
For more information on Alcoa wheels, visit www.alcoawheels.com. For details on Wheel Torque
Solutions, seewww.wheeltorquesolutions.com.
About Alcoa Wheel and Transportation Products
Alcoa Wheel and Transportation Products, headquartered in Cleveland, Ohio, serves the
commercial vehicle, automotive, and defense markets with products used in a range of
applications including forged aluminum wheels, aluminum space frames, specialized vacuum
die cast products, niche products such as Dura-Bright® and Dura-Flange® wheels and M-
Series™ medium truck wheels, as well as a variety of other aluminum components for these
markets. AWTP is composed of three divisions: Transportation Products, Commercial Vehicle
Wheels, and Automotive Wheels. It employs 2,800 people at 30 locations worldwide.
REVENUE
Periods 2009 2010
March 4147.0 4887.0
June 4244.0 5187.0
September 4615.0 5287.0
December 5433.0 5652.0
Note: Units in Millions of U.S. Dollars
EARNINGS PER SHARE
Periods 2009 2010
March -0.5877 -0.1936
June -0.32024 0.12177
September 0.07362 0.05844
December -0.27402 0.2305
Note: Units in U.S. Dollars
CONSENSUS ESTIMATES ANALYSIS
# of Estimates Mean High Low 1 Year Ago
SALES (in millions)
Quarter Ending มี.ค.-54 7 6,229.49 7,840.00 5,424.00 5,048.00
Quarter Ending มิ.ย.-54 6 6,170.57 6,671.09 5,610.00 5,476.00
Year Ending ธ.ค.-54 11 23,830.80 26,742.00 21,013.00 23,247.20
Year Ending ธ.ค.-55 9 25,422.80 31,089.00 23,039.00 24,239.10
EARNINGS (per share)
Quarter Ending มี.ค.-54 14 0.27 0.34 0.19 0.22
Quarter Ending มิ.ย.-54 12 0.32 0.49 0.19 0.26
Year Ending ธ.ค.-54 17 1.31 2.20 0.75 1.23
Year Ending ธ.ค.-55 14 1.60 2.81 1.17 1.37
Sales and Earnings Figures in U.S. Dollars (USD)
VALUATION RATIOS
Company Industry Sector S&P 500
P/E Ratio (TTM) 76.60 23.28 19.26 17.76
P/E High - Last 5 Yrs. 60.19 41.08 128.20 89.76
P/E Low - Last 5 Yrs. 11.30 5.96 14.90 12.28
Beta 2.09 1.39 1.35 1.32
Price to Sales (TTM) 0.84 11.05 2.16 2.21
Price to Book (MRQ) 1.25 0.13 1.79 2.99
Price to Tangible Book (MRQ) 2.08 0.15 1.92 5.39
Price to Cash Flow (TTM) 9.56 21.39 19.64 68.54
Price to Free Cash Flow (TTM) 15.76 1.37 5.43 20.80
% Owned Institutions -- -- -- --
DIVIDENDS
Company Industry Sector S&P 500
Dividend Yield 0.72 0.71 1.16 1.59
Dividend Yield - 5 Year Avg. 2.14 1.43 1.70 2.48
Dividend 5 Year Growth Rate -27.52 -7.00 11.53 -5.22
Payout Ratio(TTM) 47.32 13.48 5.14 42.56
GROWTH RATES
Company Industry Sector S&P 500
Sales (MRQ) vs Qtr. 1 Yr. Ago 4.03 24.74 435.27 10.18
Sales (TTM) vs TTM 1 Yr. Ago 13.96 28.37 13.90 10.28
Sales - 5 Yr. Growth Rate -3.85 25.27 13.53 7.34
EPS (MRQ) vs Qtr. 1 Yr. Ago 184.12 121.43 63.69 77.87
EPS (TTM) vs TTM 1 Yr. Ago 119.57 -- -- --
EPS - 5 Yr. Growth Rate -29.14 3.64 13.10 4.53
Capital Spending - 5 Yr. Growth Rate -13.66 22.27 19.53 3.43
FINANCIAL STRENGTH
Company Industry Sector S&P 500
Quick Ratio (MRQ) 0.82 0.11 0.77 0.67
Current Ratio (MRQ) 1.31 0.16 1.51 0.98
LT Debt to Equity (MRQ) 64.96 9.58 16.34 115.27
Total Debt to Equity (MRQ) 67.34 16.36 31.16 164.60
Interest Coverage (TTM) -2.91 0.02 0.16 16.74
PROFITABILITY RATIOS
Company Industry Sector S&P 500
Gross Margin (TTM) 18.27 37.14 16.85 31.63
Gross Margin - 5 Yr. Avg. 18.92 39.62 26.27 29.26
EBITD Margin (TTM) 11.77 -- -- --
EBITD - 5 Yr. Avg 13.40 22.68 19.55 18.68
Operating Margin (TTM) 2.61 21.69 6.73 --
Operating Margin - 5 Yr. Avg. 6.55 15.13 13.85 14.57
Pre-Tax Margin (TTM) 2.61 21.75 6.76 15.36
Pre-Tax Margin - 5 Yr. Avg. 6.55 15.03 13.67 14.18
Net Profit Margin (TTM) 1.90 16.33 4.16 11.29
Net Profit Margin - 5 Yr. Avg. 4.63 9.76 9.53 10.44
Effective Tax Rate (TTM) 27.01 29.23 10.10 19.88
Effecitve Tax Rate - 5 Yr. Avg. 29.32 42.74 28.38 24.49
EFFICIENCY
Company Industry Sector S&P 500
Revenue/Employee (TTM) 356,152 5,193,070 49,080,426 682,649
Net Income/Employee (TTM) 6,780 761,346 -69,450,927 84,653
Receivable Turnover (TTM) 13.58 0.62 0.66 8.52
Inventory Turnover (TTM) 7.02 0.11 0.34 7.15
Asset Turnover (TTM) 0.54 0.04 0.05 0.55
MANAGEMENT EFFECTIVENESS
Company Industry Sector S&P 500
Return on Assets (TTM) 1.03 0.10 0.51 6.01
Return on Assets - 5 Yr. Avg. 3.05 7.65 9.91 5.60
Return on Investment (TTM) 1.32 0.13 0.63 7.67
Return on Investment - 5 Yr. Avg. 4.01 9.39 14.25 7.29
Return on Equity (TTM) 2.00 0.19 0.98 17.77
Return on Equity - 5 Yr. Avg. 6.68 15.27 18.91 14.52
Powered by :
Bloomberg
Reuters
Yahoo
Contact Detail:
Chutinush Taksinapinunt
Business Development Director
Heffernan Capital Management
Email: chutinush@heffernan-inc.com
Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in
Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio
Manager, having worked with some of Thailand’s largest Securities Company and Financial
Institutions.
Price Estimate by Shayne Heffernan PhD
Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan
Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com
Bangkok
Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND
Tel: +66 2 126 8000 Fax: +66 2 126 8080
New York
347 5th Avenue, Suite 1402-508 Ny, NY 10016
Tel: +1 646-403-9881 Fax: +1 646-403-8014
Singapore
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408Fax: +65 6329 9699
Disclaimer
Ebeling Heffernan (EH) distributes research and other information purchased and compiled from outside sources and analysts. This
report/release/advertisement is a commercial advertisement and is for general information purposes only. Do not base any investment decision
on information in this report/release/advertisement. EH is not a registered Investment Advisor or a member of any association for other
research providers. Under no circumstances is this report/release/advertisement to be used or considered as an offer to sell or a solicitation of
any offer to buy any security or other debt instruments, or any options, futures or other derivatives related to such securities herein. All
information herein is not intended to be used for investment advice. Price Targets are academic theory and should not be relied upon. The
majority of these profiled companies are highly risky OTC Bulletin Board or Pink Sheet companies. All readers of this information indemnify EH
from any liability for all accessed information. EH will not be responsible for updating any of its information in its report/release/advertisements.
EH advises recipients of all such data to be validated from the issuing company including all statistical information derived from SEC filings, from
data sources or financial information and data from the issuing company contained herein. The reader should seek professional financial advice,
verify all claims and do his/her own research and due diligence before investing in any securities mentioned. EH will not be liable to any person
or entity for the quality, accuracy, completeness, reliability or timeliness of information in this report/release/advertisement, or for any
direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information, products or services from any
person or entity including but not limited to lost profits, loss of opportunities, trading losses, and damages that may result from any
incompleteness or inaccuracy in any of EH’s profiled companies. When paid in stock, EH its affiliates, directors, officers, outside sources, investor
awareness groups and employees may liquidate shares at any time or hold for investment purposes. Readers are advised to review SEC periodic
reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D, www.sec.gov.nasd.com, www.pinksheets.com, www.sec.gov
and www.finra.com. SPC is compliant with the Can Spam Act of 2003. Investing in micro cap and small cap securities is speculative and carries a
high degree of risk. Investors can lose their entire investment. The Private Securities Litigation Reform Act of 1995 provides investors a 'safe
harbor' in regard to forward-looking statements. EH cautions all investors that such forward-looking statements in this
report/release/advertisement are not guarantees of future performance. Investors should understand that statements regarding future
prospects may not be realized. This report/release/advertisement does not have regard to the specific investment objective, financial situation,
suitability, and the particular need of any specific person who may receive this report/release/advertisement. Investors should note that income
from such securities, if any, may fluctuate and that each security's price or value may rise or fall substantially. Accordingly, investors may receive
back less than originally invested, or lose their entire investment. Past performance is not indicative of future performance. The Company has
not paid compensation for this commercial advertisement. HCM. has written this commercial advertisement for EH.
top related