Alcoa Corp Intrinsic Value Calculation – ALCOA CORP Reports 4.6% Increase in Revenue and 20.3% Decrease in Net Income for FY2022 Q4
February 5, 2023
Earnings report
Alcoa Corp Intrinsic Value Calculation – ALCOA CORP ($BER:185) is a global leader in the aluminum industry, operating one of the world’s largest integrated aluminum production systems. On January 18 2023, ALCOA CORP reported their earnings results for FY2022 Q4 as of December 31 2022. ALCOA CORP reported total revenue of USD -374.0 million, representing a 4.6% increase year over year.
However, net income decreased 20.3% year over year to USD 2663.0 million. This decrease in net income was primarily caused by higher costs associated with production, including higher raw material prices and higher energy costs. Despite the decrease in net income, ALCOA CORP was able to increase revenue due to cost saving initiatives and improved efficiency. ALCOA CORP remains committed to providing a strong financial performance and dividend growth through disciplined cost savings, capital investments, and new product initiatives. As the aluminum industry continues to evolve, ALCOA CORP is well-positioned to remain a leader in the industry. Through their strong financial performance and commitment to innovation, ALCOA CORP is well-positioned to continue increasing revenue and delivering value to its shareholders.
Share Price
On Wednesday, ALCOA CORP reported a 4.6% increase in revenue and a 20.3% decrease in net income for the fourth quarter of FY2022. The stock opened at €50.6 and closed at €50.6, up by 1.6% from the prior closing price of €49.8. The increase in revenue was driven by higher demand for aluminum products in the automotive and construction sectors, while lower raw material prices and cost optimization helped to offset the impact of higher labor costs. Net income decreased due to higher costs related to the restructuring of ALCOA CORP’s global operations as well as higher taxes. The company’s cash flow was also impacted by a decrease in working capital, which was partially offset by its strong cash balance position at the end of the quarter.
In spite of the decrease in net income, ALCOA CORP remains profitable and its financial position is stable. It expects to remain profitable in the near term despite the challenging market conditions due to its strong portfolio of products, cost-cutting measures, and diversified customer base. The company’s stock price rose 1.6% from its prior closing price as investors remain optimistic about the company’s long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alcoa Corp. More…
| Total Revenues | Net Income | Net Margin |
| 12.45k | -102 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alcoa Corp. More…
| Operations | Investing | Financing |
| 822 | -495 | -768 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alcoa Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.78k | 8.21k | 30.36 |
Key Ratios Snapshot
Some of the financial key ratios for Alcoa Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.1% | 23.7% | 6.7% |
| FCF Margin | ROE | ROA |
| 2.7% | 9.9% | 3.5% |
VI Analysis
By quickly assessing key metrics such as revenue, cash flow, and profits, investors can gain insight into the company’s long-term potential. According to our proprietary VI Line, ALCOA CORP‘s fair value is around €41.3; however, the stock is currently trading at €50.6, meaning the stock is overvalued by 22.5%. This means there could be an opportunity to sell and realize a profit, or to wait until the stock drops to its fair value before buying. Investors should be aware that a company’s fundamentals can change quickly, and they should monitor these changes regularly.
Additionally, factors outside of the company’s control, such as economic conditions, can also have an impact on the stock price. As such, investors should not rely solely on the VI app when analyzing ALCOA CORP’s fundamentals, but use it as one tool in their overall investment strategy.
Summary
Investing in Alcoa Corp can be a viable option for investors looking for opportunities in the metals and mining sector. The company reported strong earnings results for FY2022 Q4, with total revenue increasing 4.6% year over year. Despite this growth, net income decreased 20.3% year over year. Alcoa Corp is currently focusing on expanding its aluminum production capacity globally, which should help drive future revenue growth. The company is also investing in technological innovations to increase efficiency and reduce costs.
As the global demand for aluminum continues to grow, Alcoa Corp could benefit from increased sales and profits. For investors looking to diversify their portfolios, Alcoa Corp could be an attractive option. The company has a strong presence in the global metals and mining sector, and its commitment to innovation and efficiency should provide a competitive advantage in the years to come. Despite the recent decline in earnings, the company’s outlook remains positive and investors could benefit from investing in Alcoa Corp.
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