In this video, Taylor Muckerman looks at three key areas Alcoa (NYSE: AA ) investors need to watch.
- Cost structure -- in particular, whether Alcoa can continue to build on its actions that improved margins in 2012.
- Whether it can maintain its cash position and debt-to-equity ratio.
- Internal metrics -- such as converting sales to revenue -- which are areas Alcoa tends to focus on.
For more details, check out the video.
Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160 billion by 2017. Based on this prospect and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant simply click here now to get started.