ALCOA CORP (AA) Stock Fundamental Analysis
NYSE:AA • US0138721065
63.285 USD
-1.62 (-2.49%)
Last: Feb 26, 2026, 02:00 PM
AA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 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 is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year AA was profitable.
- In the past year AA had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 7.22%, AA is doing good in the industry, outperforming 77.56% of the companies in the same industry.
- The Return On Equity of AA (19.08%) is better than 89.74% of its industry peers.
- The Return On Invested Capital of AA (7.91%) is better than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 19.08% | ||
| ROIC | 7.91% |
ROA(3y)1.01%
ROA(5y)1.01%
ROE(3y)1.64%
ROE(5y)2.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- AA has a Profit Margin of 9.12%. This is in the better half of the industry: AA outperforms 73.72% of its industry peers.
- With a decent Operating Margin value of 9.71%, AA is doing good in the industry, outperforming 64.74% of the companies in the same industry.
- AA's Operating Margin has improved in the last couple of years.
- AA has a Gross Margin (17.08%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of AA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.71% | ||
| PM (TTM) | 9.12% | ||
| GM | 17.08% |
OM growth 3Y-4.45%
OM growth 5Y15.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y3.79%
2. Health
2.1 Basic Checks
- AA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for AA has been increased compared to 1 year ago.
- Compared to 5 years ago, AA has more shares outstanding
- Compared to 1 year ago, AA has an improved debt to assets ratio.
2.2 Solvency
- AA has an Altman-Z score of 2.15. This is not the best score and indicates that AA is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of AA (2.15) is worse than 71.15% of its industry peers.
- The Debt to FCF ratio of AA is 4.30, which is a neutral value as it means it would take AA, 4.30 years of fcf income to pay off all of its debts.
- AA has a better Debt to FCF ratio (4.30) than 72.44% of its industry peers.
- AA has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
- AA's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. AA is outperformed by 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.72
WACC10.97%
2.3 Liquidity
- AA has a Current Ratio of 1.45. This is a normal value and indicates that AA is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.45, AA is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
- A Quick Ratio of 0.87 indicates that AA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.87, AA is doing worse than 77.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 293.75% over the past year.
- The Earnings Per Share has been decreasing by -7.00% on average over the past years.
- Looking at the last year, AA shows a small growth in Revenue. The Revenue has grown by 7.87% in the last year.
- Measured over the past years, AA shows a small growth in Revenue. The Revenue has been growing by 6.68% on average per year.
EPS 1Y (TTM)293.75%
EPS 3Y-7%
EPS 5YN/A
EPS Q2Q%21.15%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y1.01%
Revenue growth 5Y6.68%
Sales Q2Q%-1.06%
3.2 Future
- AA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.67% yearly.
- The Revenue is expected to decrease by -3.76% on average over the next years.
EPS Next Y19.95%
EPS Next 2Y16.2%
EPS Next 3Y13.79%
EPS Next 5Y-4.67%
Revenue Next Year8.01%
Revenue Next 2Y4.61%
Revenue Next 3Y3.88%
Revenue Next 5Y-3.76%
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
- AA is valuated correctly with a Price/Earnings ratio of 16.74.
- AA's Price/Earnings ratio is rather cheap when compared to the industry. AA is cheaper than 91.67% of the companies in the same industry.
- AA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.96 indicates a correct valuation of AA.
- 75.00% of the companies in the same industry are more expensive than AA, based on the Price/Forward Earnings ratio.
- AA is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 13.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AA is valued cheaply inside the industry as 83.97% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.9 | ||
| EV/EBITDA | 9.44 |
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.
- AA has a very decent profitability rating, which may justify a higher PE ratio.
- AA's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y16.2%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
- AA has a yearly dividend return of 0.66%, which is pretty low.
- AA's Dividend Yield is a higher than the industry average which is at 0.98.
- Compared to an average S&P500 Dividend Yield of 1.80, AA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
- 8.97% of the earnings are spent on dividend by AA. This is a low number and sustainable payout ratio.
DP8.97%
EPS Next 2Y16.2%
EPS Next 3Y13.79%
NYSE:AA (2/26/2026, 2:00:06 PM)
63.285
-1.62 (-2.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)01-22 2026-01-22/amc
Earnings (Next)04-14 2026-04-14/amc
Inst Owners82.31%
Inst Owner Change-13.69%
Ins Owners0.37%
Ins Owner Change0.38%
Market Cap16.39B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts75.45
Price Target63.47 (0.29%)
Short Float %2.13%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.41
Dividend Growth(5Y)N/A
DP8.97%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)62.11%
Min EPS beat(2)33.63%
Max EPS beat(2)90.58%
EPS beat(4)4
Avg EPS beat(4)44.4%
Min EPS beat(4)21.88%
Max EPS beat(4)90.58%
EPS beat(8)7
Avg EPS beat(8)38.74%
EPS beat(12)9
Avg EPS beat(12)21.75%
EPS beat(16)12
Avg EPS beat(16)2%
Revenue beat(2)1
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)1.74%
Revenue beat(4)2
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)1.74%
Revenue beat(8)3
Avg Revenue beat(8)-2.2%
Revenue beat(12)3
Avg Revenue beat(12)-2.63%
Revenue beat(16)4
Avg Revenue beat(16)-2.82%
PT rev (1m)26.49%
PT rev (3m)57.21%
EPS NQ rev (1m)4.46%
EPS NQ rev (3m)57.27%
EPS NY rev (1m)3.19%
EPS NY rev (3m)38.11%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)6.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 13.96 | ||
| P/S | 1.28 | ||
| P/FCF | 28.9 | ||
| P/OCF | 13.83 | ||
| P/B | 2.67 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)3.78
EY5.97%
EPS(NY)4.53
Fwd EY7.16%
FCF(TTM)2.19
FCFY3.46%
OCF(TTM)4.58
OCFY7.23%
SpS49.55
BVpS23.68
TBVpS23.68
PEG (NY)0.84
PEG (5Y)N/A
Graham Number44.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | 19.08% | ||
| ROCE | 10.01% | ||
| ROIC | 7.91% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 9.07% | ||
| OM | 9.71% | ||
| PM (TTM) | 9.12% | ||
| GM | 17.08% | ||
| FCFM | 4.42% |
ROA(3y)1.01%
ROA(5y)1.01%
ROE(3y)1.64%
ROE(5y)2.34%
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-5.41%
ROICexgc growth 5Y22.38%
ROICexc growth 3Y-4.87%
ROICexc growth 5Y22.83%
OM growth 3Y-4.45%
OM growth 5Y15.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y3.79%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 99.2% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.4% | ||
| Profit Quality | 48.46% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.15 |
F-Score7
WACC10.97%
ROIC/WACC0.72
Cap/Depr(3y)91.19%
Cap/Depr(5y)82.02%
Cap/Sales(3y)4.91%
Cap/Sales(5y)4.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)293.75%
EPS 3Y-7%
EPS 5YN/A
EPS Q2Q%21.15%
EPS Next Y19.95%
EPS Next 2Y16.2%
EPS Next 3Y13.79%
EPS Next 5Y-4.67%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y1.01%
Revenue growth 5Y6.68%
Sales Q2Q%-1.06%
Revenue Next Year8.01%
Revenue Next 2Y4.61%
Revenue Next 3Y3.88%
Revenue Next 5Y-3.76%
EBIT growth 1Y42.08%
EBIT growth 3Y-3.49%
EBIT growth 5Y23.65%
EBIT Next Year89.83%
EBIT Next 3Y35.1%
EBIT Next 5Y2.98%
FCF growth 1Y1250%
FCF growth 3Y18.35%
FCF growth 5Y69.11%
OCF growth 1Y90.51%
OCF growth 3Y12.97%
OCF growth 5Y24.64%
ALCOA CORP / AA FAQ
Can you provide the ChartMill fundamental rating for ALCOA CORP?
ChartMill assigns a fundamental rating of 5 / 10 to AA.
What is the valuation status of ALCOA CORP (AA) stock?
ChartMill assigns a valuation rating of 7 / 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 6 / 10.
Can you provide the financial health for AA stock?
The financial health rating of ALCOA CORP (AA) is 3 / 10.
Can you provide the dividend sustainability for AA stock?
The dividend rating of ALCOA CORP (AA) is 4 / 10 and the dividend payout ratio is 8.97%.