Alumina: Improved Alumina Price Lifts Near-Term Outlook
No-moat Alumina Limited's first-quarter 2024 earnings bettered the prior quarter, but that's not saying much given the sub-optimal performance for some time now.
Alumina Ltd AWC
Bulls Say, Bears Say
Bulls
Alumina is a beneficiary of continued global economic growth and increased demand for aluminium via electrification of transport.
Bears
Aluminium is abundant. Barriers to entry in bauxite mining are low, and China's alumina production is willing to behave irrationally.
Is it the right time to buy, sell, or hold?
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News
Trading Information
- Previous Close Price
- A$1.56
- Day Range
- A$1.51–1.54
- 52-Week Range
- A$0.69–1.61
- Bid/Ask
- A$1.52 / A$1.54
- Market Cap
- A$4.44 Bil
- Volume/Avg
- 3.6 Mil / 13.5 Mil
Key Statistics
- Price/Earnings (Normalized)
- —
- Price/Sales
- 6,000.25
- Dividend Yield (Trailing)
- —
- Dividend Yield (Forward)
- —
- Total Yield
- —
Company Profile
Alumina Limited is a forwarding office for Alcoa World Alumina and Chemicals' distributions. Its profit is a 40% equity share of AWAC profit, less head office and interest expenses. Its cash flow consists of AWAC distributions. AWAC investments include substantial global bauxite reserves and alumina refining operations. Declining capital and operating costs and a lack of supply discipline from China are likely to result in competitive pressures, but Alumina's position in the lowest quartile of the industry cost curve is defensive.
- Sector
- Basic Materials
- Industry
- Aluminum
- Stock Style Box
- Mid Core
- Total Number of Employees
- 13
- Website
- https://www.aluminalimited.com
Competitors
Valuation
|
Metric
|
AWC
|
RIO
|
|---|---|---|
Price/Earnings (Normalized) | — | 11.95 |
Price/Book Value | 2.14 | 2.63 |
Price/Sales | 6,000.25 | 2.60 |
Price/Cash Flow | 4,282.34 | 8.49 |
Price/Earnings
AWC
RIO
Financial Strength
|
Metric
|
AWC
|
RIO
|
|---|---|---|
Quick Ratio | 0.47 | 1.04 |
Current Ratio | 1.14 | 1.69 |
Interest Coverage | −6.58 | 8.04 |
Quick Ratio
AWC
RIO
Profitability
|
Metric
|
AWC
|
RIO
|
|---|---|---|
Return on Assets (Normalized) | −5.35% | 11.84% |
Return on Equity (Normalized) | −6.12% | 22.48% |
Return on Invested Capital (Normalized) | −4.21% | 19.38% |
Return on Assets
AWC
RIO
Aluminum Industry Comparables
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ALMMF
| Aluminum Corp of China Ltd Class H | — | Dhm | $16.0 Bil | |
NHYDY
| Norsk Hydro ASA ADR | — | Sjmh | $12.7 Bil | |
NHYKF
| Norsk Hydro ASA | — | Wnzs | $12.4 Bil | |
CHHQY
| China Hongqiao Group Ltd ADR | — | Glq | $11.8 Bil | |
CHHQF
| China Hongqiao Group Ltd | — | Mydv | $11.7 Bil | |
AA
| Alcoa Corp | Qhgsgmxkl | Vwxj | $6.5 Bil | |
CSTM
| Constellium SE Class A | — | Pqkcd | $3.1 Bil | |
AWCMY
| Alumina Ltd ADR | Swjwvkm | Mhdb | $2.9 Bil | |
AWCMF
| Alumina Ltd | — | Kvm | $2.9 Bil | |
CENX
| Century Aluminum Co | Vbjtk | Chzt | $1.6 Bil |