AA

Alcoa Corp

Industrial/Transportation


Presented:12/15/2017
Price:$42.61
Cap:$7.97B
Current Price:$41.30
Cap:$10.67B

Presented

Date12/15/2017
Price$42.61
Market Cap$7.97B
Ent Value$11.14B
P/E Ratio27.85x
Book Value$31.68
Div Yield0%
Shares O/S187.00M
Ave Daily Vol3,951,315
Short Int4.07%

Current

Price$41.30
Market Cap$10.67B
Alcoa Corp. engages in the production of bauxite, alumina and aluminum products. It operates through the following segments: Bauxite, Alumina, Aluminum, Cast Products, Energy and Rolled Products. The Bauxite segment portfolio represents its bauxite mining assets and it is mined and sold primarily to internal customers within the Alumina segment, who then process it into alumina. The Alumina segment represents its worldwide refining system, which processes bauxite into alumina, which is mainly sold directly to internal and external smelter customers worldwide. The Aluminum segment represents its worldwide smelter system, which receives alumina, mostly from the Alumina segment, and produces molten primary aluminum. The Cast Products segment represents its worldwide cast house system, which are made from molten aluminum, purchased primarily from its Aluminum segment, which is then formed into various value-added ingot products, including billet and slab, for use in fabrication operations in a variety of industries. The Energy segment represents portfolio of energy assets. The Rolled Products segment represents its rolling mill in Warrick, Indiana, which produces aluminum sheet primarily sold directly to customers in the packaging end market for the production of aluminum cans. Alcoa Corporation began operation as a separate company on November 1, 2016 and was formed by Alcoa Inc. (now named Arconic Inc.) via a distribution of shares (spinoff) to existing Alcoa Inc. stockholders. The company is headquartered in New York, NY.

Publicly traded companies mentioned herein: Alcoa Corp (AA)

Highlights

The presenter is long shares of Alcoa (AA), seeing a tightening of input costs, decreased Chinese capacity due to environmental regulations, and global aluminum demand returning to growth. The presenter sees meaningful upside as aluminum prices correct upwards, the cost and price curve is pushed up, and AA’s multiples recover from currently depressed levels.

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