Fermer X Les cookies sont necessaires au bon fonctionnement de 24hGold.com. En poursuivant votre navigation sur notre site, vous acceptez leur utilisation.
Pour en savoir plus sur les cookies...
AnglaisFrancais
Cours Or & Argent en

Aluminum Corp of China

Publié le 23 octobre 2014

Alcoa's Growth Drivers Justified Almost Doubling in a Year

( 0 vote, 0/5 ) Imprimer l'article
  Article Commentaires Commenter Notation Suivre la société  
0
envoyer
0
commenter
Mots clés associés :   K Street | Paul Tudor Jones | Wall Street |

Alcoa's Growth Drivers Justified Almost Doubling in a Year

In this article, let's take a look at Alcoa Inc. (AA), a $20 billion market cap, which is one of the world's largest producers of primary aluminum as well as one of the world's largest suppliers of alumina, an intermediate raw material used to make aluminum products for a variety of end markets.

Cost curve and joint venture

To improve its cost curve, the company announced that it had formed a joint venture with Ma'aden, the Saudi Arabian mining company, to develop a fully integrated, world-class aluminum industry in the kingdom of Saudi Arabia, where infrastructures are growing to match the growing consumer demand.


Recently, the company has invested in a Saudi Arabian aluminum production complex because, with the deal with Ma'aden mining company, the firm is expected to be the lowest-cost aluminum production operation in the world. So with this deal it can capitalize on a low-cost natural gas supply to generate meaningful cost savings. We have to remember that energy represents about a third of Alcoa's aluminum production costs. Alcoa will control 25.1% of the joint venture, with the possibility to increase its participation to 40% in 2019.

Aluminum prices

The volatility on aluminum prices constitutes a risk to Alcoa's earnings, which is partially offset because primary aluminum is the output of the primary metals segment; it is also an input cost for the global rolled products and engineered products and solutions segments. This means that higher prices are positive for the company as a whole, and if they are low, it benefits Alcoa's downstream segments.

Little pricing power

Alcoa continues to have little pricing power in its alumina and primary aluminum products because they are undifferentiated commodities that are exposed to cyclical end markets. However, the company has an advantage in bauxite mining and alumina refining.

Revenues, margins and profitability

Looking at profitability, although its revenue declined, earnings per share increased tremendously by more than 500% in the most recent quarter compared to the same quarter a year ago. During the past fiscal year, the company swung to a loss, reporting -$2.15 versus $0.17 in the previous year. This year, Wall Street expects an improvement in earnings ($0.81 versus -$2.15).

Finally, let�s compare the best measure of performance for a firm's management: the return on equity. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry.

Ticker

Company

ROE (%)

AA

Alcoa

-19.85

ACH

Aluminum Corporation of China Limited

-5.96

AWCMF

Alumina Ltd.

-1.51

Industry Median

-8.55



The company has a negative ratio which is lower than the one exhibit by Aluminum Corporation of China (ACH) and Alumina Ltd. (AWCMF). In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment, so this ROE does not look attractive. It is very important to understand this metric before investing and it is important to look at the trend in ROE over time.

Relative Valuation

In terms of valuation, the stock sells at a price-to-book ratio of 1.6x indicates a premium versus the industry average of 1.55x while the price-to-sales ratio of 0.8x is below the industry average. This P/S indicates that the stock is relatively undervalued and seems to be an attractive investment relative to its peers.

As we can see in the next chart, the stock price has an interesting upward trend in the five-year period. If you had invested $10,000 five years ago, today you could have $10,905; that is a 1.25% compound annual growth rate (CAGR).

The stock has doubled over the past year, outperforming the rise in the S&P 500.

Final comment

Let�s start with the macro view. Global aluminum demand is expected to stay at about 7% this year. Sub-industries relevant for Alcoa will also remain attractive. The aerospace industry is expected to grow in the range of 8% to 9%, and automotive is expected to grow between 1% and 4%, packaging between 2% to 3%, and building and construction between 4% and 6%. With this outlook I feel bullish on this stock. So in this opportunity, I would recommend fundamental investors consider this attractive option for their long-term portfolios.

Hedge fund gurus like Ken Heebner (Trades, Portfolio), Steven Romick (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) added the stock in the second quarter of 2014, as well as First Pacific Advisors (Trades, Portfolio).

Disclosure: Omar Venerio holds no position in any stocks mentioned

This article first appeared on GuruFocus.
Lire la suite de l'article sur finance.yahoo.com

Aluminum Corp of China

CODE : ACH
ISIN : US0222761092
Suivi et investissement
Add to watch list Add to your portfolio Add or edit a note
Ajouter une alerte Ajouter aux Watchlists Ajouter au portefeuille Ajouter une note
ProfilIndicateurs
de Marché
VALEUR :
Projets & res.
Communiqués
de Presse
Rapport
annuel
RISQUE :
Profile actifs
Contactez la cie

Aluminum Corp of China est une société de production minière basée en Chine.

Aluminum Corp of China est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 4,6 milliards US$ (4,8 milliards €).

La valeur de son action a atteint son plus haut niveau récent le 14 septembre 2018 à 9,99 US$, et son plus bas niveau récent le 14 octobre 2022 à 7,80 US$.

Aluminum Corp of China possède 596 150 016 actions en circulation.

Votre avis nous interesse, merci de laisser un commentaire ou de noter cet article.
Evaluer : Note moyenne :0 (0 vote) Voir les mieux notés
 
Communiqués de Presse de Aluminum Corp of China
03/08/2016Monthly Return of Equity Issuer on Movements in Securities f...
05/07/2016APPOINTMENT OF SUPERVISOR
04/07/2016Monthly Return of Equity Issuer on Movements in Securities f...
30/06/2016Annual Report on Form 20-FA for Fiscal Year 2015
29/06/2016DISCLOSEABLE TRANSACTION - DISPOSAL OF ENVIRONMENTAL PROTECT...
28/06/2016CONNECTED TRANSACTIONS - JOINT OPERATION OF MAOCHANG MINE WI...
28/06/2016ANNOUNCEMENT - POLL RESULTS OF THE 2015 ANNUAL GENERAL MEETI...
28/06/2016ANNOUNCEMENT - RENEWAL OF CONTINUING CONNECTED TRANSACTION N...
28/06/2016CONNECTED TRANSACTION - ACQUISITION OF ASSETS OF SHANXI ALUM...
28/06/2016LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION
28/06/2016VOLUNTARY ANNOUNCEMENT - PROPOSED PARTICIPATION IN THE BIDDI...
07/06/2016DISCLOSEABLE TRANSACTION GOLD LEASING FINANCING
01/06/2016Monthly Return of Equity Issuer on Movements in Securities f...
30/05/2016OVERSEAS REGULATORY ANNOUNCEMENT - ANNOUNCEMENT ON THE TRANS...
12/05/2016THE 2015 ANNUAL GENERAL MEETING REPLY SLIP
12/05/2016NOTICE OF 2015 ANNUAL GENERAL MEETING
12/05/20162015 ANNUAL GENERAL MEETING
02/02/2016Monthly Return of Equity Issuer on Movements in Securities f...
01/02/2016China’s Time Bomb? Interpreting a Nation’s Aluminum Stockpil...
28/01/2016LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION
28/01/2016TERMINATION OF THE TRANSFER OF NANHAI ALLLY EQUITY INTERESTS
28/01/2016ANNOUNCEMENT ON ESTIMATED PROFIT RESULTS FOR THE YEAR OF 201...
28/01/2016DETAILED IMPLEMENTATION RULES FOR THE AUDIT COMMITTEE UNDER ...
28/01/2016CHANGE OF COMPOSITION OF NOMINATION COMMITTEE,REMUNERATION C...
19/01/2016Synthesis Energy Systems, Inc. Heralds New Milestone Achieve...
15/01/2016FURTHER ANNOUNCEMENT DISCLOSEABLE TRANSACTION DISPOSAL OF 50...
04/01/2016Monthly Return of Equity Issuer on Movements in Securities f...
29/12/2015ARTICLES OF ASSOCIATION OF Aluminum Corporation of China Lim...
29/12/2015LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION
29/12/2015ANNOUNCEMENT POLL RESULTS OF THE 2015 SECOND EXTRAORDINARY G...
24/12/2015INSIDE INFORMATION - DISCLOSEABLE TRANSACTION - DISPOSAL OF ...
24/12/2015ANNOUNCEMENT - CONNECTED TRANSACTION DISPOSAL OF 100% EQUITY...
22/12/2015INSIDE INFORMATION - BID WINNING FOR EQUITY INTERESTS IN NAN...
03/11/2015Can Alcoa’s Capacity Cuts Support Aluminum Prices?
02/11/2015New Orders Fail to Boost China’s Manufacturing and Service S...
02/11/2015Monthly Return of Equity Issuer on Movements in Securities f...
29/10/20152015 THIRD QUARTERLY REPORT
08/10/2015Monthly Return of Equity Issuer on Movements in Securities f...
15/09/20152015 Interim Report
14/09/2015Synthesis Energy Systems, Inc. Reports Another Milestone Ach...
09/09/2015Synthesis Energy Systems, Inc. Reports Progress Update on Se...
08/09/2015OVERSEAS REGULATORY ANNOUNCEMENT - SUPPLEMENTARY ANNOUNCEMEN...
14/08/2015DATE OF BOARD MEETING
03/08/2015CONNECTED TRANSACTION PROPOSED CAPITAL CONTRIBUTION TO CHINA...
03/08/2015Monthly Return of Equity Issuer on Movements in Securities f...
28/07/2015Synthesis Energy Systems, Inc. Updates Progress at Three New...
09/07/2015OVERSEAS REGULATORY ANNOUNCEMENT AND INSIDE INFORMATION - AN...
23/04/2015Notification Letter and Request Form to Non-registered holde...
23/04/2015Notification Letter and Request Form to Shareholder
21/04/2015Annual Report on Form 20-F for Fiscal Year 2014
16/04/2015DATE OF BOARD MEETING
02/04/2015ANNOUNCEMENT RESIGNATION OF INDEPENDENT NON-EXECUTIVE DIRECT...
01/04/2015Monthly Return of Equity Issuer on Movements in Securities 2...
25/03/20152014 ANNUAL RESULTS ANNOUNCEMENT
12/03/2015DATE OF BOARD MEETING
02/03/2015Monthly Return of Equity Issuer on Movements in Securities 2...
26/02/2015LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION
26/02/2015POLL RESULTS ANNOUNCEMENT OF THE 2015 FIRST EXTRAORDINARY GE...
27/01/2015An Investor’s Guide To Alcoa’s Net Income Sensitivity
08/01/2015Will Global Challenges In 2015 Dint Alcoa’s Aluminum Biz?
08/01/2015Alcoa’s Value-Added Business To Drive Profits in 2015
23/12/2014OVERSEAS REGULATORY ANNOUNCEMENT
18/12/2014Synthesis Energy Systems, TSEC and Dengfeng Power Group Sign...
18/12/2014RESIGNATION OF CHAIRMAN OF THE BOARD AND EXECUTIVE DIRECTOR
18/12/2014LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION
03/12/2014Monthly Return of Equity Issuer on Movements in Securities 2...
07/11/2014Monthly Return of Equity Issuer on Movements in Securities 2...
23/10/2014Alcoa's Growth Drivers Justified Almost Doubling in a Year
17/10/2014Date of Board Meeting
05/09/2014Alcoa (AA) Shares Touches a Fresh 52-Week High at $17.36
26/08/2014Alcoa (AA) to Close Italy Smelter and Take Charge in Q3
06/08/2014U.S. Stocks Rise; Nu Skin Shares Tumble On Downbeat Results
02/07/2014Markets Edge Higher; Constellation Brands Profit Beats Stree...
Publication de commentaires terminée
 
Dernier commentaire publié pour cet article
Soyez le premier à donner votre avis
Ajouter votre commentaire
NYSE (ACH)
7,80-5.91%
NYSE
US$ 7,80
14/10 10:30 -0,490
-5,91%
Cours préc. Ouverture
8,29 7,41
Bas haut
7,41 8,15
Année b/h Var. YTD
 -  -
52 sem. b/h var. 52 sem.
- -  7,80 -%
Volume var. 1 mois
2 481 -%
24hGold TrendPower© : 34
Produit
Développe
Recherche
 
 
 
Analyse
Interactive chart Add to compare
Graphique
interactif
Imprimer Comparer Exporter
Vous devez être connecté pour accéder au portefeuille (gratuit)
Top Newsreleases
LES PLUS LUS
Variation annuelle
DateVariationMaxiMini
2022-43,19%9,9610,02
202158,18%9,8310,16
20203,33%9,954,60
 
Graphique 5 ans
 
Graphique 3 mois
 
Graphique volume 3 mois
 
 
Nouvelles des Sociétés Minières
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
0,12 AU$-8,00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
7,70 AU$-0,65%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
2,20 AU$+0,00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
3,86 AU$+0,00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
0,12 CA$+4,55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
0,02 CA$+100,00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
12,26 US$+2,68%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
0,20 US$-12,28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
0,53 GBX-1,87%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
0,06 CA$+0,00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
2,64 CA$-1,86%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
1,84 CA$+0,00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
16,23 CA$+4,04%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
0,24 CA$+4,26%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
0,20 AU$+2,63%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
6,80 US$-2,86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
1,88 CA$+0,53%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
52,71 US$+0,19%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
8,66 CA$-0,35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
0,04 AU$+5,56%Trend Power :