ARCONIC INC Stock Analysis, Valuation (NYSE:ARNC)

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$18.08 $0.07 (0.39%) ARNC stock closing price May 18, 2018 (Closing)
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ARCONIC INC
Updated on : May 18, 2018
previous close
ARNC 18.1 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Mining-Non Ferrous
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-10.9%
Operating Profit
Operating Margin:
3.1%
Sector Average:
8.5%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
6.35B
Debt/Equity Ratio:
 1.2
Compared to the industry
Cash Flow
Operating cash flow:
-$436M
Net Income:
$143M
Dividend Yield
ARNC dividend yield:
1.33%
PROS      CONS
PE Valuation
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
Cash Flow
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ARNC PS :
0.7
Industry PS :
1.4
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-3.9%
Return on Equity:
-4.6%
Free Cash Flow Margin:
-16.1%
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ARCONIC INC Stock Analysis

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View the ARCONIC INC stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for ARNC stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

ARCONIC INC Stock Rating 2.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ARNC stock analysis. We compare ARCONIC INC valuation with its sector peers to gauge relative attractiveness of ARNC stock. Our ARCONIC INC stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ARNC stock?

  • The price to earnings multiple of 14.8 is attractive when compared with the industry average PE ratio of 19.
  • ARNC stock is trading at a favorable price to sales multiple of 0.7 as against the Mining-Non Ferrous industry average multiple of 1.4.

Should you sell ARNC stock?

  • Sales declined by -10.9% annually over the last 5 years.
  • ARCONIC INC had an unimpressive average operating margin of 3.1% during the Last Twelve Months (LTM).
  • ARCONIC INC posted an average Net loss of -1.9% in the last twelve months.
  • With a debt/equity ratio of  1.2, ARCONIC INC is highly leveraged in comparison to Basic Materials peers.
  • ARCONIC INC's negative ROIC of -3.9% indicates operational inefficiency.
  • A negative ROE of -4.6% indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -16.1%.

Comments on this video and ARCONIC INC stock

Investors can make use of the Amigobulls ARCONIC INC stock analysis to ascertain how ARNC stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, ARCONIC INC revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of ARCONIC INC stock.