Is Alcoa’s Stock a Good Buy Right Now?

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Alcoa is normal. It’s much stronger than the debt-to-equity ratio for Aluminum Corporation of China (NYSE:ACH), yet it’s not quite as strong as the debt-to-equity ratio for Kaiser Aluminum (NASDAQ:KALU). Alcoa’s balance sheet is in negative territory and could be improved.

Debt-To-Equity

Cash

Long-Term Debt

AA

.57

$1.43 Billion

$9.52 Billion

ACH

1.50

$1.81 Billion

$6.36 Billion

KALU

.37

$335.50 Million

$378.40 Million

 

T = Technicals on the Stock Chart Are Weak

Alcoa has performed poorly over the past three years. The past year has brought better results, but the stock is still in negative territory for that timeframe.

1 Month

Year-To-Date

1 Year

3 Year

AA

2.43%

1.16%

-6.41%

-39.02%

ACH

.81%

35.20%

36.90%

61.97%

KALU

6.29%

4.81%

.27%

-60.07%

 

At 8.64, Alcoa is currently trading close to all its averages.

50-Day SMA

8.63

100-Day SMA

8.69

200-Day SMA

8.99

 

E = Earnings and Revenue Are Sporadic

Annual earnings and revenue have been unsteady. The decline in revenue from 2007 to 2009 was cause for concern, but the past two years have shown better results.   

2007

2008

2009

2010

2011

Revenue ($)in billions

29.28

26.90

18.44

21.01

24.95

Diluted EPS ($)

2.94

-.10

-1.23

.24

.55

 

Quarterly earnings and revenue have also been mixed. Q3 YoY saw declines in both revenue and earnings, but this was likely just a bump in the road.  

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in millions

6.42

5.99

6.01

5.96

5.83

Diluted EPS ($)

.15

-.15

.09

.00

-.13

 

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