Alcoa Corporation Stock Intrinsic Value – Alcoa Corporation Posts Significant Losses in Second Quarter Results

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Alcoa Corporation ($NYSE:AA), a leading global producer of alumina, aluminum and aluminum products, reported significant losses in its second-quarter results. The company posted a Non-GAAP Earnings Per Share (EPS) of -$0.23, significantly lower than the predicted figure of $0.00. Revenue for the quarter totaled $2.67B, which was $90M below the expected amount. Its products are used in a variety of industries, including aerospace, automotive, packaging and construction. Alcoa stocks are listed on the New York Stock Exchange under the ticker symbol “AA”.

The losses reported by Alcoa Corporation in its second-quarter results are concerning. The company must now adjust its strategy and make changes in order to improve its bottom line and remain competitive in the market. Investors will be closely monitoring the company’s progress as it works to recover from this setback.

Price History

On the day of the announcement, ALCOA CORPORATION stock opened at $41.0 and closed at $41.2, down 2.2% from its previous closing price of 42.2. The losses come as a result of a weak market for aluminum due to economic instability, as well as increased costs for raw materials and energy. Despite these losses, ALCOA CORPORATION is still expected to remain profitable for the year overall. Live Quote…

About the Company

Income Snapshot

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

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Alcoa Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Alcoa Corporation. More…

Key Ratios Snapshot

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

Analysis – Alcoa Corporation Stock Intrinsic Value

At GoodWhale, we have conducted an in-depth analysis of ALCOA CORPORATION’s fundamentals. After careful consideration and investigation, our proprietary Valuation Line has determined that the fair value for ALCOA CORPORATION share is around $65.0. As of now, the stock is being traded at $41.2, which is an astounding 36.6% undervalued. This presents a great opportunity for investors to capitalize on this discrepancy in price. 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

Investor sentiment is generally negative towards the stock as a result, though the stock is down only half a percent on the news. Looking ahead, investors will be monitoring Alcoa’s ongoing recovery efforts, with the company having recently announced plans to invest billions in strategic initiatives to drive long-term growth. Additionally, investors will be keeping an eye on the company’s ability to manage its expenses, as well as its ability to capitalize on its competitive advantages in the aluminum market.