NYSE:AA
$13.16
(2/9 11:27AM)
+0.8%
| Open | $13.36 |
Mkt Cap | $12.7 Billion |
| High | $13.5 |
52Wk High | $17.60 |
| Low | $13.1 |
52Wk Low | $4.97 |
| Volume | 14.2 Million |
Avg Vol 10D | 44.8 Million |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
AA Revenue
As a value investing shop, we are interested in seeing how AA's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.19x and the low end of the range at 0.59x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for AA of 0.70x is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $13.18, AA is 22% below where we would expect to see it. This will beneficially factor into our final analysis of AA as it is not often that this stock sinks to these levels.
AA Cash Earnings
When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of AA, it appears that either the current estimate for Cash Earnings is negative or AA is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters.
Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis AA receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.
AA Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from AA against the historic high and low levels over an available data range. Because AA has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In AA’s case, the estimated annual dividend is $0.12 producing a current dividend yield of 0.91%. The highest dividend yield from AA in recent history was 10.00% while the lowest dividend yield was 0.68%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as AA that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 82.96% below the median yield.
Power Lunch Brings News Related to Alcoa Inc.
Alcoa Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about ALCOA INC.
Learn About RazorWire?AA Gets Mentioned in the Financial Media
As always, the latest news on AA is available to Ockham clients through RazorWire, and it was mentioned recently on Fox Business.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Fox Business said about ALCOA INC.
Learn About RazorWire?AA's Dividends Mentioned by Fox Business
For income investors, dividend news is obviously important. AA's dividends were discussed recently on Fox Business.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Fox Business said about ALCOA INC.
Learn About RazorWire?Notice a Discussion Covering AA Appeared Recently in the Financial News
As always, the latest news on AA is available to Ockham clients through RazorWire, and it was mentioned recently on Fox Business.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AA has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Alcoa Inc. will beat the market in the foreseeable future. At Ockham, we are not advising buying Alcoa Inc. at the current price level because according to our methodology it is not supported by the fundamentals.
“… Stocks like ALCOA for example. Is their focus on companies that have large exposures oversee for getting hit hard? > > …”
Power Lunch: What is Happening with Alcoa Inc. Now?
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on AA from Power Lunch.
As of this week's report, we have an Overvalued valuation on AA because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Alcoa Inc. has actually sunk a bit in comparison to the others.
“… Rio tinto, ALCOA, on the down side. Nasdaq, lowest level since november. > > that's right. You don't need me to tell you how hard the nasdaq's getting hit. …”
Interested in AA? See What the Pundits Said on The Call
Alcoa Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Call.
The Motley Fool CAPS data suggests that investors believe Alcoa Inc. will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AA has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Alcoa Inc. at the current price level because according to our methodology it is not supported by the fundamentals.
“… Merck and ALCOA and decliners are leading advancers 8 to 1. The nasdaq is down better than 2% roughly 6 to 1 decliners versus advancers there and the nasdaq. …”
Squawk On The Street: Discussion of AA's Earnings
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed Squawk On The Street discussed earnings on AA.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on AA because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Alcoa Inc. has actually sunk a bit in comparison to the others.
“… ALCOA the big loser on the dow. Down almost 4%. Cisco as we mentioned higher by about 1%. Starwood hotels up about 6%. Strong earnings there. …”
Zero Hedge Brings News Related to Alcoa Inc.
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on AA from Zero Hedge.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AA has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Alcoa Inc. at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe Alcoa Inc. will beat the market in the foreseeable future.
“… 06bps tighter, and ALCOA Inc. (+16. 25bps) adding 0. 13bps to IG. HVOL is more sensitive with International Lease Finance Corp. pushing it 0. 24bps tighter, and ALCOA Inc. …”
RazorWire has Detected News About AA on Closing Bell
As always, the latest news on AA is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. In comparison to the other stocks that we follow, Alcoa Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. As of this week's report, we have an Overvalued valuation on AA because the price has gotten too high to be justified by the fundamentals.
“… ALCOA has had a good two days, it's down again today, back to 13. 50 a share. Retail and technology turning it around. Tech has been strong for much of the day and that's ... …”
Fast Money Brings News Related to Alcoa Inc.
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on AA from Fast Money.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on AA because the price has gotten too high to be justified by the fundamentals. In comparison to the other stocks that we follow, Alcoa Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… Upgrading ALCOA saying the stock is attractively valued. > > talking about valuations, they're right about all these things. Raise their commodity forecast, as well. …”