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Arconic

NYSE:ARNC
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARNC
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Arconic Corporation manufactures and sells aluminum sheets, plates, extrusions, and architectural products in the United States, Hungary, Russia, China, France, the United Kingdom, and internationally. The last earnings update was 10 days ago. More info.


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  • Arconic has significant price volatility in the past 3 months.
ARNC Share Price and Events
7 Day Returns
61.5%
NYSE:ARNC
7.2%
US Metals and Mining
8%
US Market
1 Year Returns
-
NYSE:ARNC
-22.4%
US Metals and Mining
-8.1%
US Market
ARNC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arconic (ARNC) 61.5% - - - - -
US Metals and Mining 7.2% -5.8% -23.7% -22.4% -20.7% -7.3%
US Market 8% -4.5% -17.8% -8.1% 13.2% 23.7%
1 Year Return vs Industry and Market
  • No trading data on ARNC.
  • No trading data on ARNC.
Price Volatility
Industry
5yr Volatility vs Market

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.

NYSE:ARNC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 NYSE:ARNC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.782 (1 + (1- 21%) (34.66%))
0.998
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.998 * 5.44%)
7.17%

Discounted Cash Flow Calculation for NYSE:ARNC 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.

NYSE:ARNC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.17%)
2020 178.14 Est @ -11.21% 166.23
2021 165.09 Est @ -7.33% 143.75
2022 157.49 Est @ -4.61% 127.96
2023 153.23 Est @ -2.7% 116.17
2024 151.13 Est @ -1.37% 106.92
2025 150.47 Est @ -0.44% 99.33
2026 150.80 Est @ 0.22% 92.89
2027 151.82 Est @ 0.67% 87.26
2028 153.32 Est @ 0.99% 82.23
2029 155.19 Est @ 1.22% 77.67
Present value of next 10 years cash flows $1,100.00
NYSE:ARNC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $155.19 × (1 + 1.74%) ÷ (7.17% – 1.74%)
$2,909.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,909.18 ÷ (1 + 7.17%)10
$1,455.95
NYSE:ARNC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,100.00 + $1,455.95
$2,555.95
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,555.95 / 109.02
$23.44
NYSE:ARNC Discount to Share Price
Calculation Result
Value per share (USD) From above. $23.44
Current discount Discount to share price of $10.03
= -1 x ($10.03 - $23.44) / $23.44
57.2%

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
>50%
Share price is $10.03 vs Future cash flow value of $23.44
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
NYSE:ARNC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.06
NYSE:ARNC Share Price ** NYSE (2020-04-08) in USD $10.03
United States of America Metals and Mining Industry PE Ratio Median Figure of 37 Publicly-Listed Metals and Mining Companies 8.12x
United States of America Market PE Ratio Median Figure of 2,949 Publicly-Listed Companies 13.31x

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

** Primary Listing of Arconic.

NYSE:ARNC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 10.03 ÷ 2.06

4.86x

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

  • Arconic is good value based on earnings compared to the US Metals and Mining industry average.
  • Arconic is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Arconic's expected growth come at a high price?
Raw Data
NYSE:ARNC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Metals and Mining Industry PEG Ratio Median Figure of 22 Publicly-Listed Metals and Mining Companies 0.13x
United States of America Market PEG Ratio Median Figure of 2,009 Publicly-Listed Companies 0.9x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Arconic, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Arconic's assets?
Raw Data
NYSE:ARNC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $24.89
NYSE:ARNC Share Price * NYSE (2020-04-08) in USD $10.03
United States of America Metals and Mining Industry PB Ratio Median Figure of 107 Publicly-Listed Metals and Mining Companies 1.08x
United States of America Market PB Ratio Median Figure of 5,163 Publicly-Listed Companies 1.29x
NYSE:ARNC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 10.03 ÷ 24.89

0.4x

* Primary Listing of Arconic.

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

  • Arconic is good value based on assets compared to the US Metals and Mining 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 Metals and Mining 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 Metals and Mining industry average (and greater than 0)? (1 check)
  5. Arconic has a total score of 5/6, 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.

Future Performance

 How is Arconic expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arconic has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
10.1%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arconic expected to grow at an attractive rate?
  • Unable to compare Arconic's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Arconic's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Arconic's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NYSE:ARNC Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*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
NYSE:ARNC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ARNC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 7,277 457 225
2019-09-30 7,378 342 138
2018-12-31 7,442 503 170
2017-12-31 6,824 182 209

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Arconic is high growth as no earnings estimate data is available.
  • Unable to determine if Arconic is high growth as no revenue estimate data is available.
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
NYSE:ARNC 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 0 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.

NYSE:ARNC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.06
2019-09-30
2018-12-31
2017-12-31

*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.
  • Unable to establish if Arconic will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Arconic is trading at Arconic'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Arconic's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. Arconic's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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 0/6, 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.

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 (Metals and Mining).
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.
  • Insufficient data to establish if Arconic's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Arconic's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Arconic's earnings growth has exceeded the US Metals and Mining industry average in the past year (32.4% vs -22.3%).
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.

NYSE:ARNC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,277.00 225.00 346.00 45.00
2019-09-30 7,378.00 138.00 319.00 50.00
2018-12-31 7,442.00 170.00 288.00 63.00
2017-12-31 6,824.00 209.00 361.00 66.00
2016-12-31 6,661.00 155.00 396.00 83.00

*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 US Metals and Mining industry average last year based on Return on Assets.
  • Unable to establish if Arconic improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
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 Metals and Mining 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 1/6, 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.

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 cash and other short term assets cover its long term commitments.
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 covered by short term assets, assets are 5.8x 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.

NYSE:ARNC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,728.00 250.00 72.00
2019-09-30 2,740.00 250.00 47.00
2018-12-31 2,677.00 250.00 81.00
2017-12-31 3,007.00 250.00 126.00
2016-12-31
  • Arconic's level of debt (9.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Arconic's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (182.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x 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 5/6, 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.

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%
Current annual income from Arconic dividends.
If you bought $2,000 of Arconic shares you are expected to receive $0 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?
  • Unable to evaluate Arconic's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Arconic's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
NYSE:ARNC 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 0 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1933 Stocks 2.8%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as Arconic has not reported any payouts.
  • Unable to verify if Arconic's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Arconic's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Arconic has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Arconic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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.

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
Tim Myers
COMPENSATION $3,351,658
AGE 53
TENURE AS CEO 0 years
CEO Bio

Mr. Timothy Donald Myers, also known as Tim, serves as Chief Executive Officer, President and Director of Arconic Corporation. Mr. Myers serves as President of Arconic Rolled Products Corporation since February 11, 2020, and serves as its Director. He has been Executive Vice President and Group President of Global Rolled Products & Transportation and Construction Solutions at Arconic Inc. Mr. Myers's responsibilities include oversight of three Arconic business units: Arconic Wheel and Transportation Products, Building and Construction Systems and Latin American Extrusions, all leaders in innovating aluminum solutions in their respective markets. He served as President of Alcoa Wheel & Transportation Products at Arconic Inc. from July 1, 2009 to May 2016. Mr. Myers served as Vice President and General Manager of Commercial Vehicle Wheels of Alcoa Wheel Products Collingwood, a Division of Arconic Inc. (formerly, Alcoa Inc.) since January 2006. He served as President of Alcoa Wheel and Transportation Products Inc. at Arconic Inc. since July 1, 2009. He joined Alcoa in 1991 as an Automotive Applications Engineer with Alcoa's Commercial Rolled Products group in Southfield, Michigan. Since 1994, he served as an Account Manager for Alcoa's Mill Products business based in Chicago and after two years he served in Detroit as Account Manager for Alcoa Forged Products, selling primarily to the U.S. Big Three automakers. He served as General Manager of Alcoa's Forged Specialty Wheels business since 2003. Mr. Myers served as Product Design Engineer of Ford Motor Company in Detroit. He has been Director of Greater Cleveland Partnership since March 2012. Mr. Myers served as Director of Commercial Operations of Alcoa, involved in commercial and product development accountability for Alcoa's worldwide OEM wheel business with facilities in North America, Europe and Latin America. Mr. Myers received both a Bachelor's Degree in Mechanical Engineering in 1988 and an MBA degree in 1994 from the University of Michigan, Ann Arbor.

CEO Compensation
  • Tim's compensation has increased in line with Arconic recently becoming profitable.
  • Tim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

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

0.3
Average Tenure
49.5
Average Age
  • The average tenure for the Arconic management team is less than 2 years, this suggests a new team.
Management Team

Tim Myers

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
53

Erick Asmussen

TITLE
Executive VP & CFO
AGE
52
TENURE
0.2 yrs

Jason Secore

TITLE
VP of Treasury & Investor Relations
TENURE
0.3 yrs

Diana Toman

TITLE
Executive VP
AGE
40

Melissa Miller

TITLE
Executive VP & Chief Human Resources Officer
AGE
47

Mark Vrablec

TITLE
Executive VP & Chief Commercial Officer
AGE
58

Nandu Srinivasan

TITLE
President of Global Rolled Products - North America
TENURE
0.3 yrs

Kip Wyman

TITLE
Senior Vice President of Manufacturing & Supply Chain Excellence
TENURE
0.3 yrs

Rob Woodall

TITLE
President of Global Rolled Products - Europe & Asia
TENURE
0.3 yrs

Mary Zik

TITLE
VP & Controller
AGE
47
TENURE
0.2 yrs
Board of Directors Tenure

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

0.3
Average Tenure
58.5
Average Age
  • The average tenure for the Arconic board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fritz Henderson

TITLE
Independent Chairman
AGE
60

Tim Myers

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
53
TENURE
0.3 yrs

Bill Austen

TITLE
Independent Director
AGE
60
TENURE
0.3 yrs

Jacques Croisetiere

TITLE
Independent Director
AGE
64
TENURE
0.3 yrs

Stan O'Neal

TITLE
Independent Director
AGE
68
TENURE
0.3 yrs

Chris Ayers

TITLE
Independent Director
AGE
52
TENURE
0.3 yrs

Peg Billson

TITLE
Independent Director
AGE
57
TENURE
0.3 yrs

Austin Camporin

TITLE
Independent Director
AGE
36
TENURE
0.3 yrs

Elmer Doty

TITLE
Director
AGE
65
TENURE
0.3 yrs

Jeff Stafeil

TITLE
Independent Director
AGE
49
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
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.

News

Simply Wall St News

Is Arconic Inc.'s (NYSE:ARNC) ROE Of 9.1% Concerning?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Arconic: 9.1% = US$443m ÷ US$4.9b (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Arconic Have A Good Return On Equity? … Companies that can achieve high returns on equity without too much debt are generally of good quality.

Simply Wall St -

Arconic (NYSE:ARNC) Takes On Some Risk With Its Use Of Debt

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … The first step when considering a company's debt levels is to consider its cash and debt together. … View our latest analysis for Arconic How Much Debt Does Arconic Carry?

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Estimating The Fair Value Of Arconic Inc. (NYSE:ARNC)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $827.8m $1.2b $914.0m $942.0m $952.4m $967.6m $986.3m $1.0b $1.0b $1.1b Growth Rate Estimate Source Analyst x5 Analyst x2 Analyst x1 Analyst x1 Est @ 1.1% Est @ 1.59% Est @ 1.93% Est @ 2.17% Est @ 2.34% Est @ 2.46% Present Value ($, Millions) Discounted @ 9.92% $753.1 $1.0k $688.3 $645.4 $593.6 $548.7 $508.8 $473.0 $440.4 $410.5 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $6.1b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.1b × (1 + 2.7%) ÷ (9.9% – 2.7%) = US$15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$15b ÷ ( 1 + 9.9%)10 = $5.87b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $11.94b.

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Do Directors Own Arconic Inc. (NYSE:ARNC) Shares?

We can see that Arconic does have institutional investors; and they hold 74% of the stock. … NYSE:ARNC Income Statement, July 19th 2019 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. … Insider Ownership Of Arconic The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

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Does Arconic Inc. (NYSE:ARNC) Create Value For Shareholders?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Arconic: 13% = US$684m ÷ US$5.2b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … The Importance Of Debt To Return On Equity Companies usually need to invest money to grow their profits. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Should You Worry About Arconic Inc.’s (NYSE:ARNC) ROCE?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Arconic: 0.086 = US$1.3b ÷ (US$18b - US$3.7b) (Based on the trailing twelve months to March 2019.) So, Arconic has an ROCE of 8.6%. … How Arconic's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Arconic (NYSE:ARNC) Shareholders Booked A 17% Gain In The Last Year

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the last year Arconic grew its earnings per share, moving from a loss to a profit. … When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

Simply Wall St -

What Kind Of Shareholders Own Arconic Inc. (NYSE:ARNC)?

The big shareholder groups in Arconic Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Taking a look at our data on the ownership groups (below), it's seems that.

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Did Arconic Inc. (NYSE:ARNC) Use Debt To Deliver Its ROE Of 11%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Is Arconic Inc. (NYSE:ARNC) Expensive For A Reason? A Look At The Intrinsic Value

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

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Company Info

Description

Arconic Corporation manufactures and sells aluminum sheets, plates, extrusions, and architectural products in the United States, Hungary, Russia, China, France, the United Kingdom, and internationally. It operates through three segments: Rolled Products, Extrusions, and Building and Construction Systems. The Rolled Products segment provides a range of aluminum sheet and plate products for ground transportation, aerospace, industrial, and packaging markets. The Extrusions segment offers extruded products, including aerospace shapes, automotive shapes, seamless tubes, hollows, mortar fins, and high strength rods and bars for ground transportation, aerospace, and industrial markets. The Building and Construction Systems segment provides various products and building envelope solutions, such as entrances, curtain walls, windows, composite panels, and coil coated sheets for fabricators and glazing subcontractors. The company was formerly known as Arconic Rolled Products Corporation and changed its name to Arconic Corporation in Arpil 2020. Arconic Corporation was incorporated in 2019 and is headquartered in Pittsburgh, Pennsylvania.

Details
Name: Arconic Corporation
ARNC
Exchange: NYSE
Founded: 2019
$1,093,484,401
109,021,376
Website: http://www.arconic.com
Address: Arconic Corporation
201 Isabella Street,
Pittsburgh,
Pennsylvania, 15212-5872,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARNC Share Capital New York Stock Exchange US USD 19. Mar 2020
MUN 47I Share Capital Boerse Muenchen DE EUR 19. Mar 2020
BMV ARNC1 * Share Capital Bolsa Mexicana de Valores MX MXN 19. Mar 2020
Number of employees
Current staff
Staff numbers
15,400
Arconic employees.
Industry
Aluminum
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 04:30
End of day share price update: 2020/04/08 00:00
Last earnings filing: 2020/03/30
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.