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Alcoa (AA) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Alcoa
NYSE•Basic Materials•Aluminum
$37.91-0.79(-0.02%)Pre-market
Market Cap
$10.35B
P/E
6.8x
P/S
0.7x
P/B
1.3x

Alcoa Corporation, together with its subsidiaries, engages in the bauxite mining, alumina refining, aluminum production, and energy generation business in Australia, Brazil, Canada, Iceland, Norway, Spain, the United States, and internationally. The company operates through two segments: Alumina and Aluminum. It operates bauxite and other aluminous ores mining and processes bauxite into alumina for sale to aluminum smelter customers and customers who process it into industrial chemical products through supply contracts to third parties, as well as aluminum smelting and casting businesses. The company also offers aluminium powder and scrap and primary aluminum in the form of commodity grade ingot and value-add ingot to customers that produce products for transportation, building and construction, packaging, wire, and other industrial markets. In addition, it provides energy that generates and sells electricity in the wholesale market to traders, large industrial consumers, distribution companies, and other generation companies. The company was formerly known as Alcoa Upstream Corporation and changed its name to Alcoa Corporation in May 2016. The company was founded in 1886 and is headquartered in Pittsburgh, Pennsylvania.

B

How this company scores

GoodMetricSide Score: 78/100

Strongest: Cash & Earnings Quality (22/25); weakest: Balance Sheet & Red Flags (17/25).

Profitability20/25
Growth19/25
Balance Sheet & Red Flags17/25
Cash & Earnings Quality22/25
Strengths
Rising free cash flowHigh ROERising earningsInterest easily covered

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 6.8x5y range 6.8x – 131.3x
P/E 6.8x · below its 11-quarter median

Currently below its 11-quarter median.

P/S · 0.7x5y range 0.5x – 1.3x
P/S 0.7x · near its 20-quarter median

Currently near its 20-quarter median.

P/B · 1.3x5y range 1.1x – 3.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume
Market Cap $10.35B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$14.31B
2Q
Q. Revenue
$3.70B
24%
TTM EBITDA
$2.45B
2Q
TTM Op. Income
$1.78B
2Q
Q. Op. Income
$541.00M
162%
TTM Net Income
$1.53B
2Q
Q. Net Income
$483.00M
108%
EPS
$1.83
108%
Shares Out.
$264.00M
2%
$14.31B in TTM revenue grew 11.2% YoY, reaching $3.70B last quarter. TTM EBITDA of $2.45B and TTM operating income of $1.78B show growth is flowing through to the bottom line. TTM net income of $1.53B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
23.8%
138%
EBITDA Margin
19.4%
182%
Op. Margin
14.6%
150%
Net Margin
13.0%
68%
Op. margin of 14.6% is up 43.6% YoY — cost efficiency is improving. Net margin at 13.0% and gross margin of 23.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 150% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
6.8x
2Q
P/S Ratio
0.7x
2Q
P/B Ratio
1.3x
2Q
At 6.8x P/E, the stock trades below typical market levels. P/S of 0.7x and P/B of 1.3x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$20.36B
7Q
Cash
$4.41B
197%
Long-Term Debt
$4.82B
87%
Book Value
$8.24B
3Q
D/E Ratio
0.6
44%
Debt/EBITDA
6.7
47%
With $20.36B in assets and $4.82B in long-term debt, D/E is 0.6and book value is $8.24B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 44% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$643.00M
2Q
TTM Free Cash Flow
$890.00M
2Q
FCF Margin
6.2%
2Q
FCF / Net Income
0.6
29%
TTM FCF of $890.00M on $643.00M in operating cash flow. The FCF / Net Income ratio of 0.6x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.

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· near its 20-quarter median

Currently near its 20-quarter median.

Leverage Risk

Watch

Debt-to-equity has risen 43.9% recently — increasing financial risk even if the current ratio is manageable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Red Flag

Shares outstanding increased 24.5% — significant dilution, likely from stock compensation or capital raises.