ARCONIC INC Stock Analysis, Valuation (NYSE:ARNC)
ARCONIC INC Stock Analysis
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%.
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.