Official PayPal Seal

Alcoa’s Turnaround Still a Work in Progress

publication date: Jan 16, 2020
View a Printer Friendly version of this page, allowing you to print the page. Send a summary of this page to someone via email.

Image Shown: It has been rough for Alcoa Corporation over the past couple of years as the company faces a slowing global industrial economy while trying to optimize its asset base and overall operations in a bid to save on costs. 

After the market close on January 15, alumina, aluminum, and bauxite product leader Alcoa Corp reported earnings covering the fourth quarter of 2019. The company’s top- and bottom-line results missed consensus expectations. Alcoa is trading at the lower bound of our fair value estimate range and shares appear fairly valued. With global industrial activity slowing down considerably, we aren’t optimistic on Alcoa’s outlook. Material asset base and operational changes will help, but there’s only so much that can be done given the firm’s looming liabilities. Even with the US-China semi-trade truce now in effect, Alcoa still has plenty of work to do to turn this ship in the right direction. We continue to stay away from Alcoa, but appreciate management attempting to bring down the firm’s net debt/liability burden via divestments and free cash flow.

Subscribe Now to Gain Access!

This page is available to subscribers only. To gain access to members only content (including this research piece), click here to subscribe. With a subscription, you'll have access to all of our premium commentary, equity reports, dividend reports and Best Ideas Newsletter and Dividend Growth Newsletter, as well as receive discounts on all of our modeling tools and products. Financial advisers and institutional investors have even more to choose from!

Click to Learn More about Valuentum

If you are already a subscriber, please

If you believe you should be able to view this area then please contact us and we will try to rectify this issue as soon as possible.

To gain access to the members only content, click here to subscribe. You will be given immediate access to premium content on the site.