ALCOA CORP (AA) Stock Fundamental Analysis
NYSE:AA • US0138721065
60.51 USD
-2.64 (-4.18%)
At close: Feb 12, 2026
60.2553 USD
-0.25 (-0.42%)
After Hours: 2/12/2026, 8:26:37 PM
AA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. While AA is still in line with the averages on profitability rating, there are concerns on its financial health. AA has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- AA had positive earnings in the past year.
- 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
- AA has a better Return On Assets (7.22%) than 79.62% of its industry peers.
- AA has a Return On Equity of 19.08%. This is amongst the best in the industry. AA outperforms 91.72% of its industry peers.
- AA has a better Return On Invested Capital (7.91%) than 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
- Looking at the Profit Margin, with a value of 9.12%, AA is in the better half of the industry, outperforming 75.16% of the companies in the same industry.
- 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.
- AA's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 17.08%, AA is in line with its industry, 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.
- 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
- AA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.12 indicates that AA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AA has a worse Altman-Z score (2.12) than 71.34% of its industry peers.
- AA has a debt to FCF ratio of 4.30. This is a neutral value as AA would need 4.30 years to pay back of all of its debts.
- The Debt to FCF ratio of AA (4.30) is better than 71.97% 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.
- 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 | 2.12 |
ROIC/WACC0.72
WACC10.95%
2.3 Liquidity
- A Current Ratio of 1.45 indicates that AA should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.45, AA is doing worse than 72.61% of the companies in the same industry.
- A Quick Ratio of 0.87 indicates that AA may have some problems paying its short term obligations.
- The Quick ratio of AA (0.87) is worse 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.
- Measured over the past years, AA shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.00% on average per year.
- The Revenue has been growing slightly by 7.87% in the past 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 -8.37% yearly.
- The Revenue is expected to decrease by -1.16% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 16.01, the valuation of AA can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of AA indicates a rather cheap valuation: AA is cheaper than 94.27% of the companies listed in the same industry.
- AA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
- The Price/Forward Earnings ratio is 13.35, which indicates a correct valuation of AA.
- Based on the Price/Forward Earnings ratio, AA is valued a bit cheaper than the industry average as 75.80% of the companies are valued more expensively.
- AA is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AA is valued cheaper than 88.53% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AA is valued cheaply inside the industry as 86.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.64 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
- The 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.
- AA's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y16.2%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, AA is not a good candidate for dividend investing.
- AA's Dividend Yield is a higher than the industry average which is at 1.03.
- 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 been paying a dividend for at least 10 years, so it has 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%
60.51
-2.64 (-4.18%)
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 Cap15.67B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts78.18
Price Target63.47 (4.89%)
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 | 16.01 | ||
| Fwd PE | 13.35 | ||
| P/S | 1.22 | ||
| P/FCF | 27.64 | ||
| P/OCF | 13.22 | ||
| P/B | 2.55 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)3.78
EY6.25%
EPS(NY)4.53
Fwd EY7.49%
FCF(TTM)2.19
FCFY3.62%
OCF(TTM)4.58
OCFY7.56%
SpS49.55
BVpS23.68
TBVpS23.68
PEG (NY)0.8
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 | 2.12 |
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%.