|Bid||2.67 x 0|
|Ask||2.68 x 0|
|Day's Range||2.6550 - 2.6900|
|52 Week Range||2.1200 - 3.2000|
|Beta (3Y Monthly)||0.49|
|PE Ratio (TTM)||15.76|
|Earnings Date||Feb 21, 2019|
|Forward Dividend & Yield||0.24 (9.02%)|
|1y Target Est||2.09|
US-China Trade Deficit Narrows: Will It Please Trump?(Continued from Prior Part)AlcoaIn the previous part, we noted that China’s steel exports rose in January. While China’s steel exports have been in a downtrend after hitting a record high in
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Alumina Limited (ASX:AWC) due to its excellent fundamentals in more than Read More...
Alcoa: Strong Q4 Numbers Can’t Hide Its WeaknessAlcoaAlcoa (AA), the leading US-based aluminum producer (XME), released its fourth-quarter earnings on January 16 after the markets closed. The company reported revenues of $3.3 billion during the
Alcoa: Could There Be a Surprise in Its Q4 Earnings? (Continued from Prior Part) ## Alcoa As we noted previously, aluminum producers, including Century Aluminum (CENX), fell sharply last year and aluminum prices fell. Alumina was relatively strong in 2018 amid supply disruptions. While Alcoa (AA) stock also fell last year, its earnings were actually strong due to higher alumina prices (AWC). Analysts polled by Thomson Reuters expect Alcoa to post an adjusted EBITDA of $3.0 billion in 2018, which is ~30% higher than its 2017 EBITDA. ## Fourth-quarter estimates Looking at the fourth-quarter estimates, Alcoa is expected to post revenues of $3.35 billion in the fourth quarter. The company posted revenues of $3.39 billion in the third quarter and $3.17 billion in the fourth quarter of 2017. Alcoa’s adjusted EBITDA is expected to fall to $717 million in the fourth quarter from $795 million in the third quarter. While Alcoa’s fourth-quarter numbers don’t look that bad, the real test could be in 2019. Analysts expect Alcoa’s adjusted EBITDA to fall to $531 million in the first quarter of 2019. Although analysts expect the company’s EBITDA to rise in the following quarters, the estimates seem to be assuming higher aluminum prices from the current levels. ## Key drivers Falling aluminum prices (RIO) have dented Chinese aluminum smelters’ profitability. Later in 2018, Chinese smelters decided on capacity curtailments. The situation is particularly bleak for smelters that don’t have captive alumina refineries. The alumina-to-aluminum ratio is elevated, which hurts standalone smelters’ earnings. While alumina has come off its highs and the alumina-to-aluminum ratio has come down, it’s still high compared to historical averages. Alumina prices might fall more in 2019, which could hurt integrated producers like Alcoa. Alcoa’s fiscal 2019 estimates appear to be on the higher side compared to other metal prices. Next, we’ll discuss how analysts are rating Alcoa before its fourth-quarter earnings release. Continue to Next Part Browse this series on Market Realist: * Part 1 - Alcoa: Could There Be a Surprise in Its Q4 Earnings? * Part 3 - Alcoa Stock: Analysts Might Be a Little Too Optimistic
Alcoa: Could There Be a Surprise in Its Q4 Earnings? ## Alcoa Alcoa (AA), the leading US-based aluminum producer (XME), is scheduled to release its fourth-quarter earnings on January 16 after the markets close. Overall, 2018 was a terrible year for metal and mining companies. Alcoa wasn’t an exception. As aluminum prices fell amid concerns about China’s slowdown, aluminum producers, including Alcoa and Century Aluminum (CENX), also fell sharply. ## Aluminum prices Aluminum prices were volatile last year. In April, prices rose to multiyear highs following the RUSAL sanctions. However, we saw a sharp sell-off in aluminum after the sanctions were relaxed. The RUSAL sanctions could be waived after the company restructured its board towards the end of 2018. Alumina held the baton for volatility last year. Alumina saw several wide price swings. From the RUSAL sanctions to the curtailment of Norsk Hydro’s Alunorte refinery, a series of disruptions hit alumina markets (AWC) (S32). ## Fourth-quarter earnings While 2018 was a somber year for Alcoa, the company managed to generate a surprise in its third-quarter earnings. Alcoa posted better-than-expected earnings and announced a $200 million share buyback during its earnings release. The move led to a sharp rally in Alcoa’s stock after its third-quarter earnings release. However, we saw weakness in Alcoa in the fourth quarter amid the broader market sell-off. In this series, we’ll see what analysts expect from Alcoa’s fourth-quarter earnings. We’ll also discuss how analysts view Alcoa ahead of its fourth-quarter earnings release. Continue to Next Part Browse this series on Market Realist: * Part 2 - Alcoa: 2019 Might Be the Real Test * Part 3 - Alcoa Stock: Analysts Might Be a Little Too Optimistic
Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Alumina Limited (ASX:AWC) as an investment opportunity by estimating the company's Read More...
As we noted previously in this series, Alcoa (AA) and other aluminum producers—including Century Aluminum (CENX)—are having a terrible year as aluminum prices have plunged. With the recent fall in aluminum prices, several Chinese smelters are losing money.
In March, President Trump imposed a 10% tariff on aluminum imports. While Century Aluminum (CENX) responded positively to the move and announced a smelter restart a few days after the tariffs, Alcoa’s (AA) response was measured from the very beginning. The tariffs have affected Alcoa in several ways.
Yesterday, the United States lifted sanctions on RUSAL, the leading Russian aluminum producer. In April, when the sanctions were imposed, aluminum prices (XME) surged to their highest level since 2011. Falling aluminum prices have also led to negative price movements for aluminum producers, such as Alcoa (AA) and Century Aluminum (CENX).
Alcoa (AA), the leading US-based aluminum producer, fell 9.0% in November. Alcoa has fallen 41% in 2018. Century Aluminum (CENX) and Rio Tinto (RIO) have fallen 54% and 6.3% year-to-date, respectively, based on their closing prices on November 30. In this part, we’ll discuss why Alcoa stock fell 9% in November.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we’ll show how Alumina Limited’s (ASX:AWC) P/E ratio Read More...
The Section 232 tariffs were President Trump’s first move in the trade war. Since then, President Trump imposed tariffs on $250 billion worth of Chinese goods. The US-China trade war and the general slowdown in China’s aluminum demand have taken a toll on aluminum prices, which hurt aluminum producers’ earnings.
Aluminum prices topped the $2,500 per metric ton level in April amid Rusal sanctions. Alumina prices have been more volatile than aluminum prices (XME). The global alumina markets have been rocked by a series of supply disruptions this year, especially at Norsk Hydro’s (NHYDY) Alunorte refinery.
Mid-caps stocks, like Alumina Limited (ASX:AWC) with a market capitalization of AU$7.7b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Read More...
Alumina, which sits in the aluminium production process between bauxite and refined metal, has historically been a highly efficient link in the supply chain. It is, to quote Greg Wittbecker, analyst at the CRU research house, one of those markets "people have taken for granted". A series of supply hits have sent the alumina price on a rollercoaster ride this year, at one stage threatening the closure of several European aluminium smelters.
Unionised workers at aluminium producer Alcoa's Western Australian operations on Friday agreed to end a strike that lasted more than six weeks after securing better job security provisions in a new wage agreement. The workers agreed to end the strike and will return to work on Monday, the Australia Workers' Union (AWU) said in a statement. Alcoa welcomed the AWU decision to end the strike, and added it would take the revised wage agreement to an employee vote next month, the company said in a statement.
The union at Alcoa's aluminium operations in the state of Western Australia said it was meeting with the company again on Wednesday to try to resolve a strike that has lasted more than six weeks, after the firm last week revised an earlier offer. "(The union's negotiating team) is meeting with Alcoa this Wednesday to discuss a resolution to the dispute," said Australian Workers' Union State Secretary Mike Zoetbrood. "A further (union) mass meeting has been scheduled for this Friday ... where we hope to achieve a fair outcome for our members," he said.
This analysis is intended to introduce important early concepts to people who are starting to invest and want to begin learning the link between company’s fundamentals and stock market performance.Read More...
The alumina price is on a charge again. In China spot prices are at their highest since December last year, according to Shanghai Metals Market. There is the potential for short-term relief if the strike at AWAC's facilities ends and Norwegian producer Hydro can persuade the Brazilian authorities to allow full operations at its Alunorte refinery.