Alcoa Corporation Stock Fair Value Calculator – Alcoa Poised to Rebound as Economic Cycle Strengthens
December 5, 2023
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Alcoa Corporation ($NYSE:AA) is one of the world’s leading producers of aluminum and aluminum products, and is a major player in the global metals market. The company has long been a volatile stock, but recent indications are that momentum is gathering for a positive turnaround. Alcoa is known for its innovative solutions and intellectual property, and is well-positioned to benefit from an upturn in the economy as demand for aluminum and aluminum products increases. The company offers a wide range of products, from lightweight metals used in aerospace applications to aluminum used in consumer electronics. Alcoa is also a leader in sustainability and environmental stewardship, with a focus on reducing its carbon footprint.
Alcoa is in a strong position to take advantage of the economic cycle if it strengthens. The company’s long-term strategy is focused on innovation, customer service, cost control, and efficiency. Alcoa’s share price has been volatile for some time, but recent activity suggests that investors are beginning to see the potential for growth. As the economy improves, Alcoa will be well-positioned to capitalize on the increased demand for its products and services.
Price History
ALCOA CORPORATION, the leading producer of aluminum and alumina worldwide, is poised to rebound as the economic cycle strengthens. On Monday, the company’s stock opened at $27.3 and closed at $26.8, indicating a 3.4% decrease from its last closing price of $27.7. This decline is likely due to expectations of a slowing global economy, which has weighed heavily on the aluminum market.
However, as the economic cycle strengthens, ALCOA is well-positioned to benefit from increasing demand for aluminum products, as well as from their own cost-cutting efforts. With a strong and diversified portfolio of products, as well as an increasingly competitive cost structure, ALCOA is well-positioned to become a leader in the aluminum market. 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 Stock Fair Value Calculator
At GoodWhale, we’ve done a thorough analysis of ALCOA CORPORATION‘s fundamentals, and from this, we’ve calculated the fair value for ALCOA CORPORATION share to be around $42.9. This valuation is based off our proprietary Valuation Line, which takes into account financials such as current and future estimates, debt, cash flow, and other metrics. This may be an attractive opportunity for investors who are looking to add this stock to their portfolio. However, it is important to remember that investing always involves some risk, and investors should do their own due diligence before making any decisions. More…
Peers
Alcoa Corp, one of the world’s largest aluminum producers, competes with a number of other companies in the industry, including Norsk Hydro ASA, MLG Oz Ltd, and Anglo American PLC. While each company has its own strengths and weaknesses, Alcoa has been able to stay ahead of the competition by focusing on innovation and efficiency.
– Norsk Hydro ASA ($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
Alcoa Corporation is a highly cyclical company, meaning its stock price is heavily dependent upon the performance of the wider market. Recently, the stock price has decreased, however investors who are able to identify the right time to enter may find that Alcoa has the potential for good returns. Alcoa’s long-term fundamentals remain strong, with a broad range of products including bauxite, alumina, aluminum, cast products, and value-added products used in industrial and commercial applications.
In addition, Alcoa has a wide network of customers across the aerospace, automotive, commercial transportation, and building and construction industries, making it well-positioned to benefit from increased demand. Alcoa also has a strong balance sheet and strong liquidity, making it attractive for investors seeking a reliable income stream. Overall, Alcoa may be starting to turn around and is worth watching for those who are able to time their investments correctly.
