ALCOA CORP (AA) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AA • US0138721065
58.16 USD
-3.19 (-5.2%)
At close: Feb 4, 2026
58.6045 USD
+0.44 (+0.76%)
After Hours: 2/4/2026, 5:48:26 PM
Overall AA gets a fundamental rating of 5 out of 10. We evaluated AA against 157 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 cheap, but on the other hand it scores bad on growth.
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's Return On Assets of 7.22% is fine compared to the rest of the industry. AA outperforms 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.
- Looking at the Return On Invested Capital, with a value of 7.91%, AA is in the better half of the industry, outperforming 70.06% of the companies in the same industry.
| 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.
- With a decent Operating Margin value of 9.71%, AA is doing good in the industry, outperforming 64.97% of the companies in the same industry.
- In the last couple of years the Operating Margin of AA has grown nicely.
- AA has a Gross Margin of 17.08%. This is comparable to the rest of the industry: AA outperforms 53.50% of its industry peers.
- 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
- 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
- AA has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AA has been reduced compared to a year ago.
2.2 Solvency
- AA has an Altman-Z score of 2.09. 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.
- AA's Altman-Z score of 2.09 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 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.
- Looking at the Debt to FCF ratio, with a value of 4.30, AA is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
- A Debt/Equity ratio of 0.40 indicates that AA is not too dependend on debt financing.
- AA has a worse Debt to Equity ratio (0.40) than 68.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.75
WACC10.5%
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 has a worse Current ratio (1.45) than 73.25% of its industry peers.
- 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 75.80% 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.
- AA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.87%.
- The Revenue has been growing slightly by 6.68% on average over the past years.
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
- Based on estimates for the next years, AA will show a decrease in Earnings Per Share. The EPS will decrease by -8.37% on average per year.
- AA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.16% yearly.
EPS Next Y16.25%
EPS Next 2Y18.3%
EPS Next 3Y-6.34%
EPS Next 5Y-8.37%
Revenue Next Year7.64%
Revenue Next 2Y4.29%
Revenue Next 3Y3.32%
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
- AA is valuated correctly with a Price/Earnings ratio of 15.39.
- 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.
- When comparing the Price/Earnings ratio of AA to the average of the S&P500 Index (28.25), we can say AA is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.24, AA is valued correctly.
- 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 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
- AA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AA is cheaper than 89.17% of the companies in the same industry.
- 85.35% 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 | 26.56 | ||
| EV/EBITDA | 8.95 |
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 cheap valuation may be justified as AA's earnings are expected to decrease with -6.34% in the coming years.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y18.3%
EPS Next 3Y-6.34%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, AA is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.01, AA pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- AA pays out 8.97% of its income as dividend. This is a sustainable payout ratio.
DP8.97%
EPS Next 2Y18.3%
EPS Next 3Y-6.34%
58.16
-3.19 (-5.2%)
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-3.59%
Ins Owners0.37%
Ins Owner Change-0.3%
Market Cap15.06B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts78.18
Price Target50.18 (-13.72%)
Short Float %2.6%
Short Ratio0.93
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)10.45%
PT rev (3m)24.29%
EPS NQ rev (1m)8.49%
EPS NQ rev (3m)115.95%
EPS NY rev (1m)5.79%
EPS NY rev (3m)54.55%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)10.72%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)7.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.17 | ||
| P/FCF | 26.56 | ||
| P/OCF | 12.71 | ||
| P/B | 2.46 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)3.78
EY6.5%
EPS(NY)4.39
Fwd EY7.56%
FCF(TTM)2.19
FCFY3.76%
OCF(TTM)4.58
OCFY7.87%
SpS49.55
BVpS23.68
TBVpS23.68
PEG (NY)0.95
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 | 2.09 |
F-Score7
WACC10.5%
ROIC/WACC0.75
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 Y16.25%
EPS Next 2Y18.3%
EPS Next 3Y-6.34%
EPS Next 5Y-8.37%
Revenue 1Y (TTM)7.87%
Revenue growth 3Y1.01%
Revenue growth 5Y6.68%
Sales Q2Q%-1.06%
Revenue Next Year7.64%
Revenue Next 2Y4.29%
Revenue Next 3Y3.32%
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%.