Alumina Limited (ASX:AWC): from SimplyWallSt: Alumina Limited,...

Alumina Limited (ASX:AWC): from SimplyWallSt:

Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. Alumina was established in 1970 and has a market cap of AUD A$8.12B, putting it in the mid-cap category.

AWC is well-postioned financially that features a healthy debt level of 4.78% of equity capital. Its operating cash flow position also reached a solid 243.20% of total borrowings, providing greater comfort for investors that the company is well-grounded if equities become out of favour. With Alumina’s market value of AU$8.12B , the company provides decent liquidity to investors, enabling the stock to better withstand selling pressure during market downturns. The past 5 years show the company has grown earnings by 21.92% annually and recorded a ROA of 14.77% over the previous twelve months (compared to the industry’s 9.77%), showing AWC contains many of the valuable traits in a defensive stock.