📊 AA Key Takeaways
Is Alcoa Corp (AA) a Good Investment?
Alcoa demonstrates solid revenue growth (+7.9% YoY) and reasonable profitability margins (13.3% net margin) with manageable debt (0.36x D/E). However, negative operating cash flow of -$179M and free cash flow of -$298M present a critical concern, indicating the company is burning cash despite reported earnings, raising questions about capital efficiency and sustainability in this cyclical commodity business.
Alcoa's latest fundamentals show a meaningful recovery in earnings power, with revenue growth, solid operating profitability, and strong returns on equity and assets. The balance sheet appears manageable with moderate leverage and positive free cash flow, but the business remains exposed to cyclical margin swings and working-capital pressure typical of commodity producers.
Alcoa Corp Key Strengths (AA)
- Revenue growth of 7.9% YoY in cyclical aluminum sector demonstrates operational momentum
- Strong debt management with 0.36x debt-to-equity ratio and 14.3x interest coverage ratio provides financial stability
- Reasonable operating margin of 15.6% and net margin of 13.3% reflect profitable core operations
- Solid liquidity position with $1.4B cash and 1.48x current ratio
- Revenue and net income are growing while diluted EPS rebounded sharply, indicating improved operating performance
- Balance sheet leverage is moderate with 0.40x debt-to-equity and interest coverage of 6.7x
- Free cash flow is positive and liquidity is acceptable with $1.60B in cash and a 1.44x current ratio
AA Stock Risks: Alcoa Corp Investment Risks
- Negative operating cash flow (-$179M) and free cash flow (-$298M) despite positive earnings signal potential working capital issues or capital intensity problems
- Low return metrics (ROE 6.2%, ROA 2.6%) indicate modest capital efficiency and value creation
- Quick ratio of 0.88x suggests tight short-term liquidity and potential working capital stress
- Cyclical aluminum industry exposure creates vulnerability to economic downturns and commodity price volatility
- Profitability is still moderate for a cyclical producer, with an 8.3% operating margin and 4.4% FCF margin
- Quick ratio of 0.87x suggests near-term liquidity is less robust once inventories are excluded
- Earnings quality could be vulnerable to aluminum price cycles, energy costs, and other input-cost volatility
Key Metrics to Watch
- Operating cash flow trend and composition - critical to reconcile with positive net income
- Working capital changes and cash conversion cycle efficiency
- Free cash flow sustainability and capital expenditure requirements
- Operating margin and free cash flow conversion
- Net debt, liquidity, and interest coverage
Alcoa Corp (AA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Alcoa Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AA Profit Margin, ROE & Profitability Analysis
AA vs Market Sector: How Alcoa Corp Compares
How Alcoa Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alcoa Corp Stock Overvalued? AA Valuation Analysis 2026
Based on fundamental analysis, Alcoa Corp has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alcoa Corp Balance Sheet: AA Debt, Cash & Liquidity
AA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alcoa Corp's revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $-3.65 indicates the company is currently unprofitable.
AA Revenue Growth, EPS Growth & YoY Performance
AA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $425.0M | $1.60 |
| Q3 2025 | $2.9B | $90.0M | $0.38 |
| Q2 2025 | $2.9B | $20.0M | $0.11 |
| Q1 2025 | $2.6B | -$252.0M | $-1.41 |
| Q3 2024 | $2.6B | $90.0M | $0.38 |
| Q2 2024 | $2.7B | $20.0M | $0.11 |
| Q1 2024 | $2.6B | -$231.0M | $-1.30 |
| Q3 2023 | $2.6B | -$168.0M | $-0.94 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alcoa Corp Dividends, Buybacks & Capital Allocation
AA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alcoa Corp (CIK: 0001675149)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AA
What is the AI rating for AA?
Alcoa Corp (AA) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AA's key strengths?
Claude: Revenue growth of 7.9% YoY in cyclical aluminum sector demonstrates operational momentum. Strong debt management with 0.36x debt-to-equity ratio and 14.3x interest coverage ratio provides financial stability. ChatGPT: Revenue and net income are growing while diluted EPS rebounded sharply, indicating improved operating performance. Balance sheet leverage is moderate with 0.40x debt-to-equity and interest coverage of 6.7x.
What are the risks of investing in AA?
Claude: Negative operating cash flow (-$179M) and free cash flow (-$298M) despite positive earnings signal potential working capital issues or capital intensity problems. Low return metrics (ROE 6.2%, ROA 2.6%) indicate modest capital efficiency and value creation. ChatGPT: Profitability is still moderate for a cyclical producer, with an 8.3% operating margin and 4.4% FCF margin. Quick ratio of 0.87x suggests near-term liquidity is less robust once inventories are excluded.
What is AA's revenue and growth?
Alcoa Corp reported revenue of $3.2B.
Does AA pay dividends?
Alcoa Corp pays dividends, with $27.0M distributed to shareholders in the trailing twelve months.
Where can I find AA SEC filings?
Official SEC filings for Alcoa Corp (CIK: 0001675149) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AA's EPS?
Alcoa Corp has a diluted EPS of $1.60.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alcoa Corp has a A grade with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AA stock overvalued or undervalued?
Valuation metrics for AA: ROE of 6.2% (sector avg: 15%), net margin of 13.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is AA's AI grade for 2026?
Our dual AI analysis gives Alcoa Corp a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AA's free cash flow?
Alcoa Corp's operating cash flow is $-179.0M, with capital expenditures of $119.0M. FCF margin is -9.3%.
How does AA compare to other Market stocks?
Vs Default sector averages: Net margin 13.3% (avg: 12%), ROE 6.2% (avg: 15%), current ratio 1.48 (avg: 1.8).