Alcoa Earnings Per Share vs. Operating Margin
| AAI Stock | 71.08 0.84 1.20% |
For Alcoa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alcoa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alcoa Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alcoa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alcoa Inc over time as well as its relative position and ranking within its peers.
Alcoa |
Alcoa Inc Operating Margin vs. Earnings Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alcoa's current stock value. Our valuation model uses many indicators to compare Alcoa value to that of its competitors to determine the firm's financial worth. Alcoa Inc is number one stock in earnings per share category among its peers. It also is number one stock in operating margin category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alcoa's earnings, one of the primary drivers of an investment's value.Alcoa Operating Margin vs. Earnings Per Share
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Alcoa |
| = | (2.37) X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Alcoa |
| = | 0.09 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Alcoa Operating Margin Comparison
Alcoa is currently under evaluation in operating margin category among its peers.
Alcoa Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alcoa, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alcoa will eventually generate negative long term returns. The profitability progress is the general direction of Alcoa's change in net profit over the period of time. It can combine multiple indicators of Alcoa, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.6 B | -3.8 B | |
| Operating Income | -227 M | -215.7 M | |
| Income Before Tax | -584 M | -554.8 M | |
| Total Other Income Expense Net | -357 M | -374.9 M | |
| Net Loss | -651 M | -618.5 M | |
| Income Tax Expense | 189 M | 179.6 M | |
| Net Interest Income | -107 M | -112.3 M | |
| Net Loss | -773 M | -734.4 M |
Alcoa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alcoa. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alcoa position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alcoa's important profitability drivers and their relationship over time.
Use Alcoa in pair-trading
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 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 will appreciate offsetting losses from the drop in the long position's value.Alcoa Pair Trading
Alcoa Inc Pair Trading Analysis
The ability to find closely correlated positions to Alcoa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alcoa when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alcoa - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alcoa Inc to buy it.
The correlation of Alcoa is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alcoa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alcoa Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alcoa can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Alcoa position
In addition to having Alcoa in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Precious Metals Funds
Funds or Etfs that invest in entities that are involved in mining, processing or dealing of precious metals. The Precious Metals Funds theme has 32 constituents at this time.
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Additional Tools for Alcoa Stock Analysis
When running Alcoa's price analysis, check to measure Alcoa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alcoa is operating at the current time. Most of Alcoa's value examination focuses on studying past and present price action to predict the probability of Alcoa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alcoa's price. Additionally, you may evaluate how the addition of Alcoa to your portfolios can decrease your overall portfolio volatility.