Alcoa Corp, a key player in the aluminum industry, has long been a staple in the basic materials sector. Known for its significant contributions to the metals and mining service category, Alcoa's stock performance is often scrutinized by investors seeking stability and growth. With a revenue of $12.7 billion, the company has shown resilience in a competitive market. However, its profit margin of 6.79% indicates that while it is profitable, there are challenges to maximizing returns. As investors weigh their options, understanding Alcoa's market dynamics and comparing them to other potential investments, like Eldorado, can provide valuable insights into the volatility and potential of these stocks. Today, we might witness that Eldorado Gold is bouncing back more slowly from its recent dip, with its shares rising just 0.61% compared to Alcoa Corp's 6.23% increase. As cautious investors shy away from the metals and mining sector, it's worth taking a closer look at Alcoa Corp to see how it measures up against Eldorado Gold and similar companies. Let's delve into the competitive dynamics between Alcoa and Eldorado to better understand their market positions.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Alcoa or Constellium is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Alcoa Corp dividends
A dividend is the distribution of a portion of Alcoa Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Alcoa Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Alcoa one year expected dividend income is about USD0.27 per share.
At present, Alcoa Corp's
Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting. The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 1.43, whereas
Dividends Paid is projected to grow to (85.5
M).
Investing in dividend-paying stocks, such as Alcoa Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Alcoa Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Alcoa Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Alcoa Corp's Liquidity
Alcoa Corp
financial leverage refers to using borrowed capital as a funding source to finance Alcoa Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alcoa Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Alcoa Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Alcoa Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Alcoa Corp's total debt and its cash.
Correlation Between Alcoa and Constellium Nv
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Alcoa Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Constellium to your portfolio. If Constellium is not perfectly correlated to Alcoa Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Alcoa Corp, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Alcoa Corp and Constellium in your portfolio? Please note if you are using this as a pair-trade strategy between Alcoa Corp and Constellium, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between AA and CSTM for more information.
Breaking down Alcoa Corp Indicators
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Alcoa Corp revenue. Based on the latest financial disclosure, Alcoa Corp reported 11.89
B of revenue.
This is 51.36% higher than that of the Metals & Mining sector and 3.6% higher than that of the
Materials industry. The revenue for all United States stocks is 26.08% lower than that of Alcoa Corp. As for Eldorado Gold we see revenue of 1.32
B, which is 88.48% lower than that of the Materials
| Alcoa | 11.89 Billion |
| Sector | 7.86 Billion |
| Eldorado | 1.32 Billion |
Volatility is the price you pay for performance, and when comparing Alcoa Corp to Eldorado, investors might find Alcoa's dynamics intriguing. With a beta of 2.29, Alcoa demonstrates a higher level of volatility, which could appeal to those seeking more aggressive growth potential. Despite its risk, Alcoa maintains a strong financial footing with a current ratio of 1.81, indicating its ability to cover short-term liabilities. Furthermore, the company boasts a substantial net asset base of $14.06 billion, underscoring its robust financial structure. While Alcoa's PEG ratio of -0.29 suggests some market skepticism about future growth, its earnings per share estimate of 3.59 for the current year reflects a potential for solid profitability..
Are Alcoa Corp technical ratios showing a come-back?
Alcoa Corp's stock is hinting at a potential upswing, as its mean deviation has dipped to 2.87. This decrease suggests reduced volatility, which could appeal to investors seeking steadier options. A lower mean deviation often means more predictable price changes, attracting those who shy away from erratic stocks. If this pattern holds, it could boost confidence in Alcoa's technical outlook, signaling a possible market rebound. The stock shows low volatility, with a skewness of 0.17 and kurtosis of 2.48.
Recognizing these volatility trends helps investors time their market moves. By using volatility indicators effectively, traders can assess Alcoa's risk relative to market shifts, whether in bullish or bearish phases, and adjust their portfolios accordingly during market downturns.Alcoa's recent surge of over 6% has certainly caught the attention of investors, but the key question remains: is this momentum sustainable? With an analyst consensus leaning towards a "Strong Buy" and a highest estimated target price of $40.65, there seems to be a bullish sentiment surrounding the stock. However, potential investors should weigh this optimism against the backdrop of a possible downside price of $21.5. While the allure of a potential upside to $29.82 is enticing, it's crucial to remain vigilant and consider the broader market conditions and Alcoa's strategic initiatives before making any investment decisions. As always, balancing risk and reward is essential when navigating the complexities of the stock market..
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Alcoa Corp. Please refer to our
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