ALCOA CORP (AA) Stock Fundamental Analysis
USA - NYSE:AA - US0138721065 - Common Stock
36.47 USD
-0.08 (-0.22%)
Taking everything into account, AA scores 4 out of 10 in our fundamental rating. AA was compared to 154 industry peers in the Metals & Mining industry. AA has a medium profitability rating, but doesn't score so well on its financial health evaluation. AA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year AA was profitable.
AA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AA reported negative net income in multiple years.
Each year in the past 5 years AA had a positive operating cash flow.
1.2 Ratios
AA has a Return On Assets of 7.18%. This is in the better half of the industry: AA outperforms 79.87% of its industry peers.
AA has a better Return On Equity (18.06%) than 90.91% of its industry peers.
AA's Return On Invested Capital of 8.70% is fine compared to the rest of the industry. AA outperforms 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROIC | 8.7% |
ROA(3y)-1.67%
ROA(5y)-0.66%
ROE(3y)-5.52%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AA has a better Profit Margin (8.91%) than 75.32% of its industry peers.
In the last couple of years the Profit Margin of AA has declined.
AA has a better Operating Margin (10.77%) than 66.23% of its industry peers.
AA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.41%, AA perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
In the last couple of years the Gross Margin of AA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 8.91% | ||
| GM | 18.41% |
OM growth 3Y-24.44%
OM growth 5Y-2.57%
PM growth 3Y-47.72%
PM growth 5YN/A
GM growth 3Y-14.25%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AA is destroying value.
Compared to 1 year ago, AA has more shares outstanding
Compared to 5 years ago, AA has more shares outstanding
AA has a worse debt/assets ratio than last year.
2.2 Solvency
AA has an Altman-Z score of 1.78. This is a bad value and indicates that AA is not financially healthy and even has some risk of bankruptcy.
AA has a Altman-Z score of 1.78. This is in the lower half of the industry: AA underperforms 70.13% of its industry peers.
The Debt to FCF ratio of AA is 4.97, which is a neutral value as it means it would take AA, 4.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.97, AA is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that AA is not too dependend on debt financing.
AA's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. AA is outperformed by 74.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.92
WACC9.41%
2.3 Liquidity
AA has a Current Ratio of 1.56. This is a normal value and indicates that AA is financially healthy and should not expect problems in meeting its short term obligations.
AA's Current ratio of 1.56 is on the low side compared to the rest of the industry. AA is outperformed by 72.73% of its industry peers.
AA has a Quick Ratio of 1.56. This is a bad value and indicates that AA is not financially healthy enough and could expect problems in meeting its short term obligations.
AA has a Quick ratio of 0.91. This is in the lower half of the industry: AA underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
AA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 656.25%, which is quite impressive.
Measured over the past years, AA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -48.01% on average per year.
The Revenue has grown by 16.94% in the past year. This is quite good.
The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)656.25%
EPS 3Y-48.01%
EPS 5YN/A
EPS Q2Q%-103.51%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y-0.71%
Revenue growth 5Y2.66%
Sales Q2Q%3.13%
3.2 Future
AA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.17% yearly.
The Revenue is expected to decrease by -0.55% on average over the next years.
EPS Next Y266.36%
EPS Next 2Y84.93%
EPS Next 3Y61.29%
EPS Next 5Y19.17%
Revenue Next Year7.44%
Revenue Next 2Y4.44%
Revenue Next 3Y4.05%
Revenue Next 5Y-0.55%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.24, the valuation of AA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AA indicates a rather cheap valuation: AA is cheaper than 97.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.46, AA is valued rather cheaply.
The Price/Forward Earnings ratio is 11.11, which indicates a very decent valuation of AA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AA indicates a somewhat cheap valuation: AA is cheaper than 75.97% of the companies listed in the same industry.
AA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
AA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AA is cheaper than 93.51% of the companies in the same industry.
88.31% of the companies in the same industry are more expensive than AA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.19 | ||
| EV/EBITDA | 5.26 |
4.3 Compensation for Growth
AA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AA's earnings are expected to grow with 61.29% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y84.93%
EPS Next 3Y61.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, AA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.63, AA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.05, AA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
AA has paid a dividend for at least 10 years, which is a reliable track record.
AA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
AA pays out 9.25% of its income as dividend. This is a sustainable payout ratio.
DP9.25%
EPS Next 2Y84.93%
EPS Next 3Y61.29%
NYSE:AA (11/19/2025, 2:58:32 PM)
36.47
-0.08 (-0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners81.04%
Inst Owner Change22.91%
Ins Owners0.37%
Ins Owner Change0.04%
Market Cap9.44B
Revenue(TTM)12.87B
Net Income(TTM)1.15B
Analysts78.18
Price Target40.37 (10.69%)
Short Float %4.79%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.41
Dividend Growth(5Y)N/A
DP9.25%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.23%
Min EPS beat(2)21.88%
Max EPS beat(2)90.58%
EPS beat(4)4
Avg EPS beat(4)36.9%
Min EPS beat(4)3.63%
Max EPS beat(4)90.58%
EPS beat(8)7
Avg EPS beat(8)39.11%
EPS beat(12)9
Avg EPS beat(12)21.11%
EPS beat(16)12
Avg EPS beat(16)1.64%
Revenue beat(2)1
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)1.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.81%
Revenue beat(12)2
Avg Revenue beat(12)-2.97%
Revenue beat(16)3
Avg Revenue beat(16)-3.12%
PT rev (1m)13.86%
PT rev (3m)15.86%
EPS NQ rev (1m)36.32%
EPS NQ rev (3m)60.54%
EPS NY rev (1m)9.29%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)5.46%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.73 | ||
| P/FCF | 18.19 | ||
| P/OCF | 8.88 | ||
| P/B | 1.49 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 5.26 |
EPS(TTM)3.56
EY9.76%
EPS(NY)3.28
Fwd EY9%
FCF(TTM)2
FCFY5.5%
OCF(TTM)4.11
OCFY11.26%
SpS49.7
BVpS24.51
TBVpS23.82
PEG (NY)0.04
PEG (5Y)N/A
Graham Number44.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROCE | 11.01% | ||
| ROIC | 8.7% | ||
| ROICexc | 9.86% | ||
| ROICexgc | 10.03% | ||
| OM | 10.77% | ||
| PM (TTM) | 8.91% | ||
| GM | 18.41% | ||
| FCFM | 4.03% |
ROA(3y)-1.67%
ROA(5y)-0.66%
ROE(3y)-5.52%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-23.91%
ROICexgc growth 5Y3.19%
ROICexc growth 3Y-23.93%
ROICexc growth 5Y3.18%
OM growth 3Y-24.44%
OM growth 5Y-2.57%
PM growth 3Y-47.72%
PM growth 5YN/A
GM growth 3Y-14.25%
GM growth 5Y-3.06%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 87.74% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.99% | ||
| Profit Quality | 45.29% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.78 |
F-Score7
WACC9.41%
ROIC/WACC0.92
Cap/Depr(3y)84.05%
Cap/Depr(5y)72.99%
Cap/Sales(3y)4.59%
Cap/Sales(5y)4.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)656.25%
EPS 3Y-48.01%
EPS 5YN/A
EPS Q2Q%-103.51%
EPS Next Y266.36%
EPS Next 2Y84.93%
EPS Next 3Y61.29%
EPS Next 5Y19.17%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y-0.71%
Revenue growth 5Y2.66%
Sales Q2Q%3.13%
Revenue Next Year7.44%
Revenue Next 2Y4.44%
Revenue Next 3Y4.05%
Revenue Next 5Y-0.55%
EBIT growth 1Y377.93%
EBIT growth 3Y-24.98%
EBIT growth 5Y0.02%
EBIT Next Year100.13%
EBIT Next 3Y30.43%
EBIT Next 5Y9.85%
FCF growth 1Y203.18%
FCF growth 3Y-57.05%
FCF growth 5Y-32.82%
OCF growth 1Y9563.64%
OCF growth 3Y-12.23%
OCF growth 5Y-1.94%
ALCOA CORP / AA FAQ
Can you provide the ChartMill fundamental rating for ALCOA CORP?
ChartMill assigns a fundamental rating of 4 / 10 to AA.
Can you provide the valuation status for ALCOA CORP?
ChartMill assigns a valuation rating of 8 / 10 to ALCOA CORP (AA). This can be considered as Undervalued.
Can you provide the profitability details for ALCOA CORP?
ALCOA CORP (AA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of ALCOA CORP (AA) stock?
The Price/Earnings (PE) ratio for ALCOA CORP (AA) is 10.24 and the Price/Book (PB) ratio is 1.49.
What is the earnings growth outlook for ALCOA CORP?
The Earnings per Share (EPS) of ALCOA CORP (AA) is expected to grow by 266.36% in the next year.