Assessing Alcoa: Insights From 5 Financial Analysts

Alcoa AA has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Alcoa and provided 12-month price targets. The average target is $36.0, accompanied by a high estimate of $48.00 and a low estimate of $31.00. This upward trend is evident, with the current average reflecting a 10.43% increase from the previous average price target of $32.60.

Decoding Analyst Ratings: A Detailed Look

The standing of Alcoa among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alcoa. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alcoa compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Alcoa's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Alcoa's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Alcoa analyst ratings.

Discovering Alcoa: A Closer Look

Alcoa Corp is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is a bauxite miner and alumina refiner by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain. The company segments include Bauxite; Alumina and Aluminum. It generates maximum revenue from the Aluminum segment. Geographically, it derives a majority of its revenue from the United States.

Financial Insights: Alcoa

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, Alcoa faced challenges, resulting in a decline of approximately -2.55% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -5.78%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Alcoa's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.42%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Alcoa's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.07%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Alcoa's debt-to-equity ratio stands notably higher than the industry average, reaching 0.45. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.