ALCOA CORP (AA) Stock Fundamental Analysis
NYSE:AA • US0138721065
59.5 USD
-1.01 (-1.67%)
Last: Feb 13, 2026, 01:24 PM
Overall AA gets a fundamental rating of 5 out of 10. We evaluated AA against 157 industry peers in the Metals & Mining industry. There are concerns on the financial health of AA while its profitability can be described as average. AA is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year AA was profitable.
- AA had a positive operating cash flow in the past year.
- In multiple years AA reported negative net income over the last 5 years.
- AA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AA (7.22%) is better than 79.62% of its industry peers.
- With an excellent Return On Equity value of 19.08%, AA belongs to the best of the industry, outperforming 91.72% of the companies in the same industry.
- AA's Return On Invested Capital of 7.91% is fine compared to the rest of the industry. AA outperforms 70.06% 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
- The Profit Margin of AA (9.12%) is better than 75.16% of its industry peers.
- AA has a Operating Margin of 9.71%. This is in the better half of the industry: AA outperforms 64.97% of its industry peers.
- In the last couple of years the Operating Margin of AA has grown nicely.
- With a Gross Margin value of 17.08%, AA perfoms like the industry average, outperforming 53.50% of the companies in the same industry.
- AA's Gross Margin has improved in the last couple of years.
| 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.
- AA has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AA has been increased compared to 5 years ago.
- Compared to 1 year ago, AA has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.08 indicates that AA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.08, AA is not doing good in the industry: 71.34% of the companies in the same industry are doing better.
- 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 71.97% of its industry peers.
- A Debt/Equity ratio of 0.40 indicates that AA is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.40, AA is doing worse than 68.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.72
WACC10.95%
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.
- AA's Current ratio of 1.45 is on the low side compared to the rest of the industry. AA is outperformed by 72.61% of its industry peers.
- AA has a Quick Ratio of 1.45. 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 worse Quick ratio (0.87) than 76.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- AA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 293.75%, which is quite impressive.
- The Earnings Per Share has been decreasing by -7.00% on average over the past years.
- AA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.87%.
- AA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.68% yearly.
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 -8.37% yearly.
- AA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.16% yearly.
EPS Next Y19.95%
EPS Next 2Y16.2%
EPS Next 3Y13.79%
EPS Next 5Y-8.37%
Revenue Next Year8.01%
Revenue Next 2Y4.61%
Revenue Next 3Y3.88%
Revenue Next 5Y-1.16%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.74, the valuation of AA can be described as correct.
- Based on the Price/Earnings ratio, AA is valued cheaply inside the industry as 93.63% of the companies are valued more expensively.
- AA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 13.12, the valuation of AA can be described as correct.
- 74.52% of the companies in the same industry are more expensive than AA, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 27.69. AA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AA is valued cheaper than 87.90% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AA is valued cheaply inside the industry as 85.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.17 | ||
| EV/EBITDA | 8.83 |
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.
- The decent profitability rating of AA may justify a higher PE ratio.
- A more expensive valuation may be justified as AA's earnings are expected to grow with 13.79% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y16.2%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
- AA has a yearly dividend return of 0.71%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.03, AA pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.71, AA pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 8.97% of its income as dividend. This is a sustainable payout ratio.
DP8.97%
EPS Next 2Y16.2%
EPS Next 3Y13.79%
NYSE:AA (2/13/2026, 1:24:09 PM)
59.5
-1.01 (-1.67%)
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-3.26%
Ins Owners0.37%
Ins Owner Change0.38%
Market Cap15.41B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts78.18
Price Target63.47 (6.67%)
Short Float %2.6%
Short Ratio0.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)39.71%
PT rev (3m)57.21%
EPS NQ rev (1m)8.49%
EPS NQ rev (3m)56.26%
EPS NY rev (1m)9.16%
EPS NY rev (3m)59.48%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)7.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.2 | ||
| P/FCF | 27.17 | ||
| P/OCF | 13 | ||
| P/B | 2.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)3.78
EY6.35%
EPS(NY)4.53
Fwd EY7.62%
FCF(TTM)2.19
FCFY3.68%
OCF(TTM)4.58
OCFY7.69%
SpS49.55
BVpS23.68
TBVpS23.68
PEG (NY)0.79
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 | 2.08 |
F-Score7
WACC10.95%
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-8.37%
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-1.16%
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%.