AA

Alcoa Corporation

Fundamental data last updated:June 6, 2026

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company profile

SECTOR

Basic Materials

industry

Aluminum

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/15/2026

Business Summary

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through three segments: Bauxite, Alumina, and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses. The company offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets. In addition, it owns hydro power plants 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 October 2016. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania.

 


VALUATION

P/E

19.82

Market Cap ($M USD)

$20.34B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

1.61

PRICE TO BOOK

2.98

EV / EBITDA

12.39

5-Year Average P/E

Free Cash Flow Yield

1.41%

DCF Value

$16.54

Graham Number

$47.59

Price to FCF

70.85

EV to FCF

74.57

Earnings Yield

5.05%

FCF Yield

1.41%

DIVIDEND

Yield

0.52%

Annual Payout

$0.40

Payout Ratio

10.34%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.89

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$1.50T

Return on Equity (ROE)

16.13%

FREE CASH FLOW

Operating Margin

6.66%

Debt-to-Equity

0.45

Piotroski F-Score

4

Altman Z-Score

2.33

Return on Invested Capital (ROIC)

6.58%

Current Ratio

1.48

Quick Ratio

0.88

Net Debt to EBITDA

0.62

Interest Coverage

6.02

Gross Profit margin

12.87%

FCF PER SHARE

$1.09

REVENUE PER SHARE

$48.00

Gainseekers Quantitative Analysis

Summary

Alcoa Corporation’s valuation presents a perplexing picture. The stock traded significantly above its DCF value, suggesting the market may be overestimating its future cash flows. With a Price/Earnings ratio of 16.25 and an Altman Z-score of 2.15, the company hovers in a zone that indicates moderate financial distress, raising questions about its long-term viability. The Earnings Yield of 6.15% is decent but not compelling enough to offset these concerns. Investors should be cautious, as the lack of a Forward P/E and a negative earnings surprise hint at uncertain growth prospects.

AI Exposure / Tech Reliance

As a player in the aluminum industry, Alcoa is positioned to leverage AI for optimizing production processes and supply chain efficiencies. However, the sector's capital-intensive nature may slow tech adoption compared to more agile industries. The company's ability to integrate modern technologies will be crucial for maintaining competitiveness.

The Bull Case

For the discerning GARP investor, Alcoa offers a few enticing attributes. A Return on Equity of 16.13% and a manageable Debt/Equity ratio of 0.45 highlight effective capital use and financial prudence. Despite a modest FCF Yield of 1.72%, the company's operating margin of 6.66% and a Piotroski F-Score of 4 suggest some operational resilience. These metrics indicate a company with potential pricing power and capital efficiency, appealing to those seeking value amidst volatility.

The Bear Case

Yet, the structural risks cannot be ignored. Alcoa's Price/Book ratio of 2.44 and Price/Sales ratio of 1.32 suggest a premium valuation that may not be justified by its fundamentals. The EV to FCF ratio of 61.79 and a Price to FCF of 58.08 signal poor cash flow generation, raising red flags about its ability to sustain operations without external financing. Additionally, trading close to its 52-week high, the stock appears technically overextended, making it vulnerable to corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$75.60

Institutional Ownership %

1-Year Beta

1.51

Insider Buying % (6 Mo)

Distance to 52-Week High

0.05%

Distance to 52-Week Low

66.48%

EARNINGS SURPRISE %

-12.50%

50-DAY SMA

$66.05

200-DAY SMA

$50.90

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.