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AA

NYSE
Neutral · 47/100

Alcoa Corp

Materials
Metals & Mining

$50.49

3.7%

Updated Today 12:11 PM ET

Report Card

AA at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 47/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 61.9% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$12.85B

P/E

12.42x

Forward P/E (est.)

10.65x

ROE

16.3%

Revenue Growth

-0.1%

EPS Growth

16.6%

Profit Margin

8.2%

FCF Yield

-3.9%

Debt / Equity

0.4x

ROIC

Interest Coverage

Current Ratio

1.48x

Dividend Yield

0.8%

Implied Growth (rev. DCF)

4.4%

Rating Score

47/100

Business Overview
Research

Alcoa Corp (AA) is a large-cap company in the Metals & Mining industry, part of the Materials sector of the S&P 500, with a market value around $12.85B.

In its latest reported year it generated about $12.83B in revenue and $1.16B in net profit.

Our model rates AA Neutral (47/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AA's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AA trades near $50.49, below its 50-day average ($64.79) and 200-day average ($54.92). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 17 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. AA's is $3.30 (~6.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month AA found buyers near $46.01 (support) and sellers near $76.61 (resistance); its 52-week range is $28.11–$84.38. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

1.4%

2/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $9.32B in 2016 to $12.83B in 2025, a 3.6% compound annual growth rate. The most recent year declined 0.1% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?

Profitability
Research
2/3 checks passedProfitableNet margin above sector midpointROE above 12%

Gross Margin

15.2%

Operating Margin

-1.0%

Net Margin

9.0%

ROE

16.3%

Alcoa Corp keeps about 8.2% of each sales dollar as net profit, with a 15.2% gross margin and -1.0% operating margin. Return on equity is 16.3%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

$2.44B

Net Debt

$1.09B

Net Debt / EBITDA

Debt / Equity

0.4x

Leverage: debt-to-equity is 0.4x, with a current ratio of 1.5x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $2.44B of total debt against $1.35B of cash.

Cash Flow Analysis
Research
1/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$1.19B

Free Cash Flow

$567.00M

FCF Margin

4.4%

In the latest year Alcoa Corp produced about $1.19B of operating cash flow and $567.00M of free cash flow after capital spending. That is a free-cash-flow yield of about -3.9% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

12.42x

P/S

1x

P/B

2.25x

EV / EBITDA

AA trades at 12.4x trailing earnings (about 10.7x on estimated forward earnings), 1.0x sales, and 2.2x book value. Reverse-engineering today's price implies the market expects roughly 4.4% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$29.25

Current price

$50.49

-42% · Above fair-value estimate

Starting FCF (latest 10-K)

$567.00M

Growth, years 1–5

-0.1%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$3.67B
PV of terminal value$4.05B
Estimated equity value$7.72B
Shares outstanding264M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where AA sits versus its Materials sector peers in the S&P 500.

TTM P/E
12.4xCheap
Forward P/E
10.7xFair
P/S ratio
1.0xCheap
Revenue growth
-0.1%Weak
EPS growth
16.6%Average
Gross margin
15.2%Weak
Net margin
8.2%Average
ROE
16.3%Average

Bands show the middle half (25th–75th percentile) of the 34 Materials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How AA stacks up against its Materials peers — valuation, profitability, and growth versus the sector median.

In the Materials sector (47 S&P 500 companies), AA ranks #24 of 47 by our overall rating. It trades at a discount versus the sector on earnings (12.4x P/E vs. 18.6x median) with a lower return on equity (16.3% vs. 16.8%) and slower revenue growth (-0.1% vs. 10.1%).

P/E vs sector

12.4x

median 18.6x

ROE vs sector

16.3%

median 16.8%

Growth vs sector

-0.1%

median 10.1%

Sector rank

#24

of 47 by rating

CompanyP/ERev Gr.Rating
AAThis stock12.4x-0.1%Neutral· 47
AGI12.5x47.8%Strong· 91
HL40x57.0%Favorable· 63
HBM15.6x13.5%Strong· 82
IAG9.9x92.3%Strong· 85
CDE22.3x113.7%Strong· 83
GFI8.9x135.1%Strong· 91
KGC10.3x43.1%Strong· 95
Materials median18.6x10.1%47/100

Valuation vs. quality map

sector medianAGIHLHBMIAGCDEGFIKGCAAP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Materials companies by sub-industry and size. Sector median is across all 47 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $50.49 today · expected CAGR -7%4%

Metric20262027202820292030
Revenue$13.22B$13.61B$14.02B$14.44B$14.87B
Net income$1.19B$1.23B$1.26B$1.30B$1.34B
EPS$4.51$4.64$4.78$4.93$5.07
Share price (low)$31.55$32.50$33.47$34.48$35.51
Share price (high)$54.09$55.71$57.38$59.10$60.88
CAGR (low–high)-38% / 7%-20% / 5%-13% / 4%-9% / 4%-7% / 4%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for AA:

  • Strong return on equity (16.3%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.4x) lowers risk.
Bear Case

The case against AA:

  • Revenue growth is slow/negative (-0.1%), limiting the upside engine.
  • Limited free cash flow at today's price.
Key Risks
Research

Growth risk — sluggish revenue (-0.1%) leaves little margin for execution missteps.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Alcoa Corp is a large-cap materials business with shrinking revenue, with modest profitability, and a sound balance sheet. It trades at 12.4x earnings, which our model scores Neutral (47/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

AA — frequently asked questions

Is AA a good stock to buy?

We don't give buy or sell advice. Our model rates Alcoa Corp Neutral (47/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is AA's rating on The Stocks School?

Alcoa Corp currently scores 47/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does AA's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Alcoa Corp's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for AA calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this AA analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AA. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.