Alcoa Corporation Intrinsic Value Calculator – ALCOA CORPORATION Reports 4.6% Increase in Revenue for FY2022 but Net Income Decreases by 20.3%

Earnings report

Alcoa Corporation Intrinsic Value Calculator – ALCOA CORPORATION ($NYSE:AA) is a leading aluminum producer and one of the world’s largest producers of aluminum and alumina products. On January 18, 2023, ALCOA CORPORATION reported its earnings results for the fourth quarter of FY2022, ending on December 31, 2022. According to the earnings report, total revenue increased by 4.6% to USD -374.0 million year-over-year.

However, ALCOA’s net income decreased by 20.3% to USD 2663.0 million compared to the same period last year. Overall, ALCOA CORPORATION reported a 4.6% increase in revenue but a 20.3% decrease in net income for the fourth quarter of FY2022. Despite the decrease in net income, the company remains confident that its long-term strategies will enable it to continue generating strong financial results in the future.

Share Price

On Wednesday, ALCOA CORPORATION reported a 4.6% increase in revenue for FY2022 compared to the previous fiscal year.

However, despite this impressive growth, the company’s net income decreased by 20.3%. In response to the news, ALCOA CORPORATION stock opened at $56.5 and closed at $53.4, down by 2.6% from the previous closing price of 54.9. The company has attributed the decrease in net income to higher costs associated with restructuring initiatives, higher costs related to strategic investments, and higher depreciation expenses. Despite the decrease in net income, ALCOA CORPORATION is confident that its long-term strategies will enable it to improve its financial performance in the future. The company’s overall performance during FY2022 was highlighted by growth in its aluminum segment, which experienced a 3% increase in revenue and a 5% increase in operating income. At the same time, ALCOA CORPORATION has taken steps to reduce costs and boost profitability. It has also sold off non-core assets to focus on core businesses and has invested in technology to improve operational efficiency and reduce costs. The company remains confident that its long-term strategies will enable it to improve its financial performance in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Alcoa Corporation. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Alcoa Corporation are shown below. More…

VI Analysis – Alcoa Corporation Intrinsic Value Calculator

ALCOA CORPORATION‘s fundamentals are used to reflect its long-term potential, and these can be easily analyzed through the VI app. The VI Line has calculated the fair value of ALCOA CORPORATION shares to be around $42.7, while the stock is currently trading at $53.4, which is an overvaluation of 25%. This indicates that investors should be wary of buying the stock at its current price. ALCOA CORPORATION is a global leader in lightweight metals technology, engineering and manufacturing, and it serves many industries including automotive, aerospace, building and construction, defense, consumer electronics, and more. The company has a history of innovation and performance, with a focus on developing new technologies and products that meet customer needs. Overall, ALCOA CORPORATION is a well-established company with a strong track record of performance, and it is currently trading at an overvalued price. Investors should be cautious when making their decisions and look into the company’s fundamentals before investing in ALCOA CORPORATION. More…

VI Peers

Alcoa Corp, one of the world’s largest aluminum producers, competes with a number of other companies in the industry, including Norsk Hydro ASA, MLG Oz Ltd, and Anglo American PLC. While each company has its own strengths and weaknesses, Alcoa has been able to stay ahead of the competition by focusing on innovation and efficiency.

– Norsk Hydro ASA ($OTCPK:NHYDY)

Norsk Hydro ASA is a Norwegian aluminum and renewable energy company. It has a market capitalization of 12.63 billion as of 2022 and a return on equity of 23.31%. The company produces aluminum and aluminum products, and also has operations in hydropower, wind power, and other renewable energy sources.

– MLG Oz Ltd ($ASX:MLG)

Anglo American PLC is a British multinational mining company with headquarters in London, United Kingdom. It is the world’s largest producer of platinum, with around 40% of world output, as well as being a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal. The company has operations in Africa, Asia, Australia, Europe, North America and South America.

Summary

ALCOA CORPORATION‘s fourth quarter of FY2022 results are mixed, with total revenue increasing by 4.6% to USD 374.0 million year-over-year, while net income decreased by 20.3% to USD 2663.0 million. While the revenue increase is a positive sign, investors should be cautious given the significant drop in net income. Investors should closely examine the company’s financial metrics to evaluate if current performance is sustainable. For instance, investors should monitor ALCOA’s debt and equity levels as well as liquidity ratios to assess the company’s ability to generate sufficient cash.

Additionally, investors should review the company’s current and historical return on equity (ROE) and return on assets (ROA) to evaluate if management is creating value for shareholders. Furthermore, investors should consider ALCOA’s competitive positioning and industry trends. ALCOA’s competitors and the overall industry dynamics can affect the company’s long-term prospects. Investors should analyse macroeconomic factors such as consumer demand, pricing power, cost of raw materials, and technological advancements to gain further insight into the company’s future trajectory. Ultimately, ALCOA CORPORATION’s fourth quarter results are mixed, and investors should conduct further research to determine the company’s future potential. By closely examining the company’s financials and industry dynamics, investors can make an informed decision on whether to invest in ALCOA CORPORATION.