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Arconic

DB:ALU2
Snowflake Description

Reasonable growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALU2
DB
$12B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Arconic Inc. engineers, manufactures, and sells lightweight metals worldwide. The last earnings update was 71 days ago. More info.


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ALU2 Share Price and Events
7 Day Returns
7.4%
DB:ALU2
0.8%
Europe Aerospace & Defense
2.5%
DE Market
1 Year Returns
27.7%
DB:ALU2
11.7%
Europe Aerospace & Defense
2.6%
DE Market
ALU2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arconic (ALU2) 7.4% -3.8% 3.4% 27.7% - -
Europe Aerospace & Defense 0.8% -2.9% 0.9% 11.7% 67.1% 114.9%
DE Market 2.5% 0.2% 1% 2.6% 7.8% 23.7%
1 Year Return vs Industry and Market
  • ALU2 outperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • ALU2 outperformed the Market in Germany which returned 2.6% over the past year.
Price Volatility
ALU2
Industry
5yr Volatility vs Market

ALU2 Value

 Is Arconic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arconic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arconic.

DB:ALU2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ALU2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (56.88%))
1.169
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.169 * 5.96%)
7.19%

Discounted Cash Flow Calculation for DB:ALU2 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arconic is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:ALU2 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.19%)
2020 791.83 Analyst x6 738.69
2021 1,024.80 Analyst x5 891.85
2022 952.00 Analyst x2 772.89
2023 1,249.00 Analyst x2 945.95
2024 1,362.98 Est @ 9.13% 962.99
2025 1,450.97 Est @ 6.46% 956.35
2026 1,517.54 Est @ 4.59% 933.09
2027 1,567.31 Est @ 3.28% 899.01
2028 1,604.37 Est @ 2.36% 858.50
2029 1,632.02 Est @ 1.72% 814.68
Present value of next 10 years cash flows $8,774.00
DB:ALU2 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,632.02 × (1 + 0.23%) ÷ (7.19% – 0.23%)
$23,479.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $23,479.14 ÷ (1 + 7.19%)10
$11,720.50
DB:ALU2 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,774.00 + $11,720.50
$20,494.50
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $20,494.50 / 440.19
$46.56
DB:ALU2 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ALU2 represents 0.8915x of NYSE:ARNC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8915x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 46.56 x 0.8915
€41.51
Value per share (EUR) From above. €41.51
Current discount Discount to share price of €23.58
= -1 x (€23.58 - €41.51) / €41.51
43.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arconic is available for.
Intrinsic value
43%
Share price is €23.58 vs Future cash flow value of €41.51
Current Discount Checks
For Arconic to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arconic's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arconic's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arconic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arconic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ALU2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.94
NYSE:ARNC Share Price ** NYSE (2019-10-11) in USD $26.45
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.4x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arconic.

DB:ALU2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARNC Share Price ÷ EPS (both in USD)

= 26.45 ÷ 0.94

28.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arconic is overvalued based on earnings compared to the Europe Aerospace & Defense industry average.
  • Arconic is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Arconic's expected growth come at a high price?
Raw Data
DB:ALU2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
21%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.59x
Germany Market PEG Ratio Median Figure of 264 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

DB:ALU2 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.09x ÷ 21%

1.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arconic is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arconic's assets?
Raw Data
DB:ALU2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $10.91
NYSE:ARNC Share Price * NYSE (2019-10-11) in USD $26.45
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.96x
Germany Market PB Ratio Median Figure of 597 Publicly-Listed Companies 1.74x
DB:ALU2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARNC Share Price ÷ Book Value per Share (both in USD)

= 26.45 ÷ 10.91

2.43x

* Primary Listing of Arconic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arconic is overvalued based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess Arconic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Arconic has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ALU2 Future Performance

 How is Arconic expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arconic expected to grow at an attractive rate?
  • Arconic's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Arconic's earnings growth is expected to exceed the Germany market average.
  • Arconic's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ALU2 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ALU2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 21%
DB:ALU2 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 3%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ALU2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ALU2 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 16,082 1,221 2
2022-12-31 15,920 1,064 2
2021-12-31 15,268 1,652 1,173 7
2020-12-31 14,836 1,525 1,059 12
2019-12-31 14,388 1,089 529 12
2019-10-12
DB:ALU2 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 14,228 325 443
2019-03-31 14,110 395 684
2018-12-31 14,014 217 640
2018-09-30 13,813 125 -305
2018-06-30 13,525 17 -364
2018-03-31 13,213 -80 -290
2017-12-31 12,960 -39 -127
2017-09-30 12,656 289 -708
2017-06-30 12,558 652 -760
2017-03-31 12,531 905 -918
2016-12-31 12,394 95 -1,131

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arconic's earnings are expected to grow significantly at over 20% yearly.
  • Arconic's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ALU2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Arconic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ALU2 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.72 2.72 2.72 1.00
2022-12-31 2.38 2.38 2.38 1.00
2021-12-31 2.66 2.80 2.54 3.00
2020-12-31 2.35 2.45 2.17 6.00
2019-12-31 1.14 1.17 1.10 5.00
2019-10-12
DB:ALU2 Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.94
2019-03-31 1.42
2018-12-31 1.33
2018-09-30 -0.63
2018-06-30 -0.77
2018-03-31 -0.63
2017-12-31 -0.28
2017-09-30 -1.61
2017-06-30 -1.73
2017-03-31 -2.09
2016-12-31 -2.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arconic is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Arconic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arconic has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ALU2 Past Performance

  How has Arconic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arconic's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arconic has delivered over 20% year on year earnings growth in the past 5 years.
  • Arconic has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Arconic has become profitable in the last year making it difficult to compare the Europe Aerospace & Defense industry average.
Earnings and Revenue History
Arconic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arconic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ALU2 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 14,228.00 443.00 725.00 90.00
2019-03-31 14,110.00 684.00 720.00 102.00
2018-12-31 14,014.00 640.00 716.00 103.00
2018-09-30 13,813.00 -305.00 728.00 105.00
2018-06-30 13,525.00 -364.00 824.00 104.00
2018-03-31 13,213.00 -290.00 838.00 104.00
2017-12-31 12,960.00 -127.00 837.00 109.00
2017-09-30 12,656.00 -708.00 853.00 120.00
2017-06-30 12,558.00 -760.00 767.00 126.00
2017-03-31 12,531.00 -918.00 761.00 129.00
2016-12-31 12,394.00 -1,131.00 866.00 130.00
2015-12-31 12,413.00 -226.00 716.00 169.00
2014-12-31 12,542.00 -82.00 728.00 123.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arconic has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arconic used its assets less efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • Arconic has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Arconic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arconic has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ALU2 Health

 How is Arconic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arconic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arconic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arconic's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Arconic's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arconic Company Filings, last reported 3 months ago.

DB:ALU2 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 4,866.00 6,335.00 1,357.00
2019-03-31 5,178.00 6,334.00 1,319.00
2018-12-31 5,585.00 6,330.00 2,277.00
2018-09-30 5,375.00 6,357.00 1,535.00
2018-06-30 5,218.00 6,357.00 1,455.00
2018-03-31 5,282.00 6,354.00 1,205.00
2017-12-31 4,924.00 6,844.00 2,150.00
2017-09-30 5,961.00 6,857.00 1,815.00
2017-06-30 5,753.00 6,844.00 1,785.00
2017-03-31 5,495.00 8,093.00 2,553.00
2016-12-31 5,141.00 8,084.00 1,863.00
2015-12-31 14,131.00 8,827.00 1,362.00
2014-12-31
  • Arconic's level of debt (130.2%) compared to net worth is high (greater than 40%).
  • Unable to establish if Arconic's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (5.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Arconic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arconic has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ALU2 Dividends

 What is Arconic's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.3%
Current annual income from Arconic dividends. Estimated to be 0.35% next year.
If you bought €2,000 of Arconic shares you are expected to receive €6 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arconic's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Arconic's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Upcoming dividend payment

Purchase Arconic before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ALU2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ALU2 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.08 1.00
2022-12-31 0.08 1.00
2021-12-31 0.09 6.00
2020-12-31 0.08 8.00
2019-12-31 0.11 8.00
2019-10-12
DB:ALU2 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-09-26 0.080 0.316
2019-07-11 0.080 0.312
2019-03-11 0.080 0.370
2019-01-29 0.240 1.313
2018-09-27 0.240 1.200
2018-05-17 0.240 1.229
2018-02-15 0.240 1.088
2018-01-19 0.240 0.867
2017-09-19 0.240 0.924
2017-07-24 0.240 0.960
2017-02-23 0.240 0.911
2017-01-13 0.240 0.958

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arconic is not paying a notable dividend for Germany, therefore no need to check if the payments are stable.
  • Arconic is not paying a notable dividend for Germany, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Arconic's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Arconic's dividends as it is not paying a notable one for Germany.
Future Payout to shareholders
  • No need to calculate the sustainability of Arconic's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Arconic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arconic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arconic has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ALU2 Management

 What is the CEO of Arconic's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Plant
COMPENSATION $402,459
AGE 65
TENURE AS CEO 0.7 years
CEO Bio

Mr. John C. Plant, FCA, has been Executive Vice President at Northrop Grumman Space & Mission Systems Corporation since 2001 and has been its Member of Chief Executive Officer office since February 2002. Mr. Plant served as the President and Chief Executive Officer of TRW Automotive Inc. at TRW Aeronautical Systems since 2001. Mr. Plant served as the President and Chief Executive Officer at ZF TRW Automotive Holdings Corp. since February 28, 2003 until 2011. Mr. Plant served as the President and Chief Executive Officer of TRW Chassis Systems since 2001. Mr. Plant was President of Lucas Varity Automotive and Managing Director of the Electrical and Electronic division from 1991 to 1997. He was a co-member of the Chief Executive Officer of TRW Inc. from 2001 to 2003 and an Executive Vice President of TRW from 1999 to 2003. Mr. Plant was the Chief Executive Officer and President of TRW Automotive Holdings Corporation (renamed ZF TRW Automotive in 2015), a diverse automotive supplier, from 2011 to 2015. He served as a General Manager of TRW's Automotive Business since 1999. He served as a General Manager of TRW Chassis Systems from 1999 to 2001, President of LucasVarity Automotive from 1998 to 1999 and Managing Director of Electrical and Electronic Division of Lucas Automotive from 1991 to 1998. From 1978 to 1999, Mr. Plant was employed by Lucas Industries in a variety of positions, including certain management positions (last serving as President of Lucas Variety Automotive until its acquisition by TRW). He joined TRW Inc., Aeronautical Unit in 1999. He served as Chairman at TRW Automotive Inc from February 18, 2011 to May 2015. He served as Chairman of ZF TRW Automotive Holdings Corp. since February 16, 2011 until May 15, 2015. He has been a Director at Masco Corporation since May 8, 2012 and Jabil , Inc. since January 21, 2016. He has been a Director at Arconic Inc. (formerly, Alcoa Inc.) since February 5, 2016. Mr. Plant is currently Chairman of the Board of Arconic Inc. Mr. Plant also serves as Chief Executive Officer of Arconic Inc. since February 06, 2019. He serves as a Director of Gates Corporation and Jabil Circuit Corporation. He served as a Director of ZF TRW Automotive Holdings Corp from February 28, 2003 to May 15, 2015. He served as a Director of Gates Industrial Corporation plc since December 15, 2017 until July 23, 2019. He has served as a director of Gates entities since 2015. Mr. Plant served as Director of TRW Automotive Inc. He served as a Trustee of Henry Ford Health System, Inc. Mr. Plant has extensive business experience as a public company executive. He served as a Director of Martin Currie Global Portfolio Trust plc (also known as Martin Currie Portfolio Investment Trust PLC) from January 28, 1999 to June 7, 2004. He also serves as Vice Chairman of the Washington based Kennedy Center Corporate Fund Board and a board member of the Automotive Safety Council. From 1974 to 1977, Mr. Plant served as a Chartered Accountant at Touche Ross. Mr. Plant is a Fellow of the Institute of Chartered Accountants. Mr. Plant holds a Bachelor of Commerce Degree in Economics, Accounting and Law and was bestowed an honorary Doctorate from University of Birmingham in 2014.

CEO Compensation
  • John's compensation has increased in line with Arconic recently becoming profitable.
  • Insufficient data for John to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Arconic management team in years:

2.9
Average Tenure
53
Average Age
  • The tenure for the Arconic management team is about average.
Management Team

John Plant

TITLE
Chairman & CEO
COMPENSATION
$402K
AGE
65
TENURE
0.7 yrs

Ken Giacobbe

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
53
TENURE
2.9 yrs

Kate Ramundo

TITLE
Executive VP
COMPENSATION
$2M
AGE
51
TENURE
2.9 yrs

Tim Myers

TITLE
Executive VP and Group President of Global Rolled Products
COMPENSATION
$3M
AGE
53

PT Luther

TITLE
Director of Investor Relations

Max Laun

TITLE
VP, General Counsel and Chief Ethics & Compliance Officer

George King

TITLE
Head of Corporate Development

Neil Marchuk

TITLE
Executive Vice President of Human Resources
AGE
61
TENURE
0.6 yrs

L. Watts-Stanfield

TITLE
Chief Financial Officer of Transportation & Construction Solutions and Member of Executive Council
TENURE
4.2 yrs

Glenn Miller

TITLE
Chief Financial Officer for Global Rolled Products (GRP) Business and Member of Executive Council
Board of Directors Tenure

Average tenure and age of the Arconic board of directors in years:

3.3
Average Tenure
66.5
Average Age
  • The tenure for the Arconic board of directors is about average.
Board of Directors

John Plant

TITLE
Chairman & CEO
COMPENSATION
$402K
AGE
65
TENURE
2 yrs

Rick Schmidt

TITLE
Independent Director
COMPENSATION
$268K
AGE
69
TENURE
3.7 yrs

Sean Mahoney

TITLE
Director
COMPENSATION
$266K
AGE
56
TENURE
3.7 yrs

Raj Gupta

TITLE
Director
COMPENSATION
$240K
AGE
74
TENURE
2.9 yrs

Jim Albaugh

TITLE
Director
COMPENSATION
$198K
AGE
69
TENURE
2.4 yrs

Stan O'Neal

TITLE
Independent Director
COMPENSATION
$251K
AGE
68
TENURE
11.8 yrs

Chris Ayers

TITLE
Director
COMPENSATION
$192K
AGE
52
TENURE
2.4 yrs

Michelle Kiely

TITLE
Member of Community Advisory Board
TENURE
6.4 yrs

Frank Sewell

TITLE
Member of Community Advisory Board
TENURE
6.4 yrs

Amy Alving

TITLE
Independent Director
COMPENSATION
$52K
AGE
57
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Arconic individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
28. Aug 19 Sell Elliott Management Corporation Company 26. Aug 19 28. Aug 19 -6,099,302 €22.71 €-137,882,364
28. Aug 19 Sell Elliott Management Corporation Company 23. Aug 19 23. Aug 19 -2,463,995 €22.00 €-54,214,363
22. Aug 19 Sell Timothy Myers Individual 21. Aug 19 21. Aug 19 -10,000 €22.82 €-228,249
08. Aug 19 Buy John Plant Individual 06. Aug 19 07. Aug 19 30,463 €21.53 €654,567
06. May 19 Buy John Plant Individual 02. May 19 02. May 19 50,000 €19.80 €990,038
06. May 19 Buy Rajiv Gupta Individual 02. May 19 02. May 19 22,603 €19.76 €446,706
X
Management checks
We assess Arconic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arconic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ALU2 News

Simply Wall St News

ALU2 Company Info

Description

Arconic Inc. engineers, manufactures, and sells lightweight metals worldwide. The company operate in three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Construction Solutions. The Engineered Products and Solutions segment produces and sells fastening systems and seamless rolled rings; investment castings, including airfoils and forged jet engine components; and extruded, machined, and formed aircraft parts for aerospace (commercial and defense), industrial, commercial transportation, and power generation end markets. It also offers various forged, extruded, and machined metal products for the oil and gas, automotive, and land and sea defense end markets. The Global Rolled Products segment produces and sells aluminum sheets and plates for the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial products end markets; and aseptic foils for the packaging end market. The Transportation and Construction Solutions segment provides integrated aluminum structural systems, architectural extrusions, and forged aluminum commercial vehicle wheels, which are used primarily in the commercial transportation and nonresidential building and construction end markets. It also produces aluminum products for the industrial products end market. Arconic Inc. sells its products directly to customers, as well as through distributors. The company was founded in 1888 and is based in New York, New York.

Details
Name: Arconic Inc.
ALU2
Exchange: DB
Founded: 1888
$10,536,898,915
440,188,364
Website: http://www.arconic.com
Address: Arconic Inc.
390 Park Avenue,
New York,
New York, 10022,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARNC Common Stock New York Stock Exchange US USD 31. Oct 2016
DB ALU2 Common Stock Deutsche Boerse AG DE EUR 31. Oct 2016
LSE 0TCU Common Stock London Stock Exchange GB USD 31. Oct 2016
WBAG ARNC Common Stock Wiener Boerse AG AT EUR 31. Oct 2016
SNSE ARNC Common Stock Santiago Stock Exchange CL USD 31. Oct 2016
BMV ARNC * Common Stock Bolsa Mexicana de Valores MX MXN 31. Oct 2016
AMEX ARNC.PR PFD SER A NYSE MKT LLC US USD 01. Nov 2016
BOVESPA ARNC34 BDR EACH REPR 1 SHS Bolsa de Valores de Sao Paulo BR BRL 08. May 2017
BASE ARNC CEDEAR EACH 6 REP 1 COM USD1 Buenos Aires Stock Exchange AR ARS 10. Nov 2016
Number of employees
Current staff
Staff numbers
43,000
Arconic employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/12 22:48
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/10
Last earnings filing: 2019/08/02
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.