Alcoa Corporation Intrinsic Value – Morgan Stanley Warns of Alumina Price Decline, Alcoa and Aluminum Stocks Slide
January 4, 2024
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Alcoa Corporation ($NYSE:AA) is a global aluminum producer with operations in dozens of countries around the world. It is the world’s largest producer of primary aluminum and a global industry leader in the production, sale, and recycling of aluminum products. This news has caused investors to worry about the company’s ability to weather the potential price decline. In response, Alcoa has announced that it is taking steps to manage its production and costs to reduce the potential negative impact of any price declines.
It has also said that it will focus on increasing its efficiency and expanding into new markets. Though investors are concerned about the potential impact of Morgan Stanley’s warning, Alcoa is confident that its production and cost management strategies will help mitigate any price decline. The company is confident that its strategy will help it remain a competitive player in the aluminum industry and will be ready to take advantage of any potential opportunities in the future.
Market Price
As a result, ALCOA CORPORATION shares opened at $32.1, but closed 5.5% lower than their previous closing price of 33.3, settling at $31.5. The news caused a sharp decline in the value of aluminum stocks and further added to the losses that have been seen by ALCOA CORPORATION over the past few months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alcoa Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 10.62k | -896 | -7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alcoa Corporation. More…
| Operations | Investing | Financing |
| 11 | -559 | 26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alcoa Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.92k | 7.83k | 25.26 |
Key Ratios Snapshot
Some of the financial key ratios for Alcoa Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.4% | 22.1% | -6.0% |
| FCF Margin | ROE | ROA |
| -4.7% | -8.6% | -2.9% |
Analysis – Alcoa Corporation Intrinsic Value
At GoodWhale, we have conducted an analysis of the fundamentals of ALCOA CORPORATION. Our proprietary Valuation Line has identified an intrinsic value of ALCOA CORPORATION shares of around $42.7. This means that ALCOA CORPORATION’s stock is currently trading at $31.5, which is a 26.3% discount. This presents an opportunity for investors to purchase ALCOA CORPORATION stock at an attractive price and potentially benefit from future appreciation of the stock. More…
Peers
Alcoa Corp, one of the world’s largest aluminum producers, competes with a number of other companies in the industry, including Norsk Hydro ASA, MLG Oz Ltd, and Anglo American PLC. While each company has its own strengths and weaknesses, Alcoa has been able to stay ahead of the competition by focusing on innovation and efficiency.
– Norsk Hydro ASA ($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
In recent years, the company’s stock price has been volatile due to the various economic and environmental factors that affect the aluminum industry. Recently, Morgan Stanley issued a warning on alumina prices, indicating that prices may be unsustainable and could lead to a further slide for aluminum related stocks such as Alcoa. Investors should watch aluminum market conditions closely as prices may be volatile, and consider the potential impact of changing conditions on Alcoa’s stock performance. In addition, investors should evaluate the company’s balance sheet, earnings, and dividend history to get a fuller picture of Alcoa’s financial health.
