Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin16.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin13.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
B
Years to Pay Off Debt10.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$374M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$5.2B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book1.27x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
B
Free Cash Flow$472M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income35.4%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$830M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Alcoa Corporation
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.
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.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Alcoa Corporation at $39.54.
The business passes 5 of 6 of Graham's defensive criteria — adequate but not exceptional.
At $39.54, the stock trades at a 11% premium to its Graham Number of $35.67. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
23.8%▲
16.7%
Operating Margin %
16.2%▲
-3.2%
Net Income %
13.0%▲
6.2%
Diluted EPS
1.81▲
0.85
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$20.4B
$16.1B
Total Debt
$4.8B▲
$2.7B
Working Capital
$5.2B▲
$1.7B
Years to Pay Debt
9.98
12.71
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$472M▲
$294M
Owner Earnings
$830M
$618M
CapEx % of Net Income
35.4%
114.1%
Income Statement
2026
2025
Tax Effect Of Unusual Items
3,017
52,418
Tax Rate For Calcs
0
0
Normalized EBITDA
772,000
41,000
Total Unusual Items
19,000
205,000
Total Unusual Items Excluding Goodwill
19,000
205,000
Net Income From Continuing Operation Net Minority Interest
483,000
213,000
Reconciled Depreciation
176,000
162,000
Reconciled Cost Of Revenue
2,822,000
2,873,000
EBITDA
791,000
246,000
EBIT
615,000
84,000
Net Interest Income
-42,000
-16,000
Interest Expense
42,000
16,000
Normalized Income
467,017
60,418
Net Income From Continuing And Discontinued Operation
483,000
213,000
Total Expenses
3,103,000
3,561,000
Diluted Average Shares
265,973
263,300
Basic Average Shares
263,914
260,928
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
483,000
213,000
Net Income Common Stockholders
483,000
213,000
Net Income
483,000
213,000
Minority Interests
1,000
11,000
Net Income Including Noncontrolling Interests
482,000
202,000
Net Income Continuous Operations
482,000
202,000
Tax Provision
91,000
-134,000
Pretax Income
573,000
68,000
Other Income Expense
14,000
196,000
Other Non Operating Income Expenses
11,000
8,000
Special Income Charges
-29,000
310,000
Gain On Sale Of Ppe
-11,000
-1,000
Restructuring And Mergern Acquisition
18,000
-795,000
Earnings From Equity Interest
-16,000
-17,000
Gain On Sale Of Security
48,000
-105,000
Net Non Operating Interest Income Expense
-42,000
-16,000
Interest Expense Non Operating
42,000
16,000
Operating Income
601,000
-112,000
Operating Expense
281,000
688,000
Other Operating Expenses
631,000
Depreciation Amortization Depletion Income Statement
176,000
162,000
Research And Development
8,000
-11,000
Selling General And Administration
97,000
68,000
Gross Profit
882,000
576,000
Cost Of Revenue
2,822,000
2,873,000
Total Revenue
3,704,000
3,449,000
Operating Revenue
3,704,000
3,449,000
Balance Sheet
2026
2025
Ordinary Shares Number
263,892
263,102
Share Issued
263,892
263,102
Net Debt
414,000
851,000
Total Debt
4,822,000
2,707,000
Tangible Book Value
8,213,000
6,084,000
Invested Capital
13,067,000
8,566,000
Working Capital
5,195,000
1,668,000
Net Tangible Assets
8,213,000
6,084,000
Capital Lease Obligations
259,000
Common Stock Equity
8,245,000
6,118,000
Total Capitalization
13,066,000
8,556,000
Total Equity Gross Minority Interest
8,245,000
6,194,000
Minority Interest
0
76,000
Stockholders Equity
8,245,000
6,118,000
Gains Losses Not Affecting Retained Earnings
-4,395,000
-5,189,000
Other Equity Adjustments
-4,395,000
-5,189,000
Retained Earnings
964,000
-271,000
Additional Paid In Capital
11,673,000
11,575,000
Capital Stock
3,000
3,000
Common Stock
3,000
3,000
Total Liabilities Net Minority Interest
12,117,000
9,935,000
Total Non Current Liabilities Net Minority Interest
8,143,000
6,134,000
Other Non Current Liabilities
573,000
35,000
Derivative Product Liabilities
781,000
1,134,000
Employee Benefits
638,000
785,000
Non Current Pension And Other Postretirement Benefit Plans
638,000
684,000
Tradeand Other Payables Non Current
61,000
93,000
Non Current Deferred Liabilities
30,000
Non Current Deferred Revenue
4,000
Long Term Debt And Capital Lease Obligation
4,821,000
2,697,000
Long Term Capital Lease Obligation
259,000
Long Term Debt
4,821,000
2,438,000
Long Term Provisions
1,269,000
1,360,000
Current Liabilities
3,974,000
3,801,000
Other Current Liabilities
1,313,000
1,176,000
Current Debt And Capital Lease Obligation
1,000
10,000
Current Debt
1,000
10,000
Other Current Borrowings
1,000
10,000
Pensionand Other Post Retirement Benefit Plans Current
377,000
383,000
Payables And Accrued Expenses
2,283,000
2,232,000
Payables
2,283,000
2,232,000
Total Tax Payable
379,000
294,000
Accounts Payable
1,904,000
1,938,000
Total Assets
20,362,000
16,129,000
Total Non Current Assets
11,193,000
10,660,000
Other Non Current Assets
211,000
185,000
Defined Pension Benefit
143,000
131,000
Non Current Prepaid Assets
440,000
441,000
Non Current Deferred Assets
959,000
927,000
Non Current Deferred Taxes Assets
676,000
687,000
Non Current Accounts Receivable
401,000
334,000
Financial Assets
86,000
34,000
Investments And Advances
1,924,000
1,874,000
Other Investments
535,000
0
Investmentin Financial Assets
1,389,000
1,397,000
Available For Sale Securities
1,389,000
1,397,000
Long Term Equity Investment
477,000
Goodwill And Other Intangible Assets
32,000
34,000
Other Intangible Assets
32,000
34,000
Goodwill
0
Net PPE
6,997,000
6,700,000
Accumulated Depreciation
-14,431,000
-13,837,000
Gross PPE
21,428,000
20,537,000
Construction In Progress
908,000
Other Properties
8,008,000
Machinery Furniture Equipment
11,374,000
Land And Improvements
247,000
Current Assets
9,169,000
5,469,000
Other Current Assets
395,000
378,000
Hedging Assets Current
273,000
49,000
Inventory
2,570,000
2,177,000
Other Inventories
647,000
580,000
Finished Goods
499,000
394,000
Work In Process
400,000
282,000
Raw Materials
1,024,000
921,000
Receivables
1,523,000
1,268,000
Other Receivables
174,000
204,000
Accounts Receivable
1,349,000
1,064,000
Cash Cash Equivalents And Short Term Investments
4,408,000
1,597,000
Cash And Cash Equivalents
4,408,000
1,597,000
Cash Flow
2026
2025
Free Cash Flow
472,000
294,000
Repayment Of Debt
0
-144,000
Issuance Of Debt
2,600,000
9,000
Capital Expenditure
-171,000
-243,000
End Cash Position
4,538,000
1,692,000
Beginning Cash Position
1,494,000
1,574,000
Effect Of Exchange Rate Changes
0
-2,000
Changes In Cash
3,044,000
120,000
Financing Cash Flow
2,584,000
-166,000
Cash Flow From Continuing Financing Activities
2,584,000
-166,000
Net Other Financing Charges
11,000
-5,000
Cash Dividends Paid
-27,000
-26,000
Common Stock Dividend Paid
-27,000
-26,000
Net Issuance Payments Of Debt
2,600,000
-135,000
Net Long Term Debt Issuance
2,600,000
-135,000
Long Term Debt Payments
0
-144,000
Long Term Debt Issuance
2,600,000
9,000
Investing Cash Flow
-183,000
-251,000
Cash Flow From Continuing Investing Activities
-183,000
-251,000
Net Other Investing Changes
4,000
9,000
Net Investment Purchase And Sale
-16,000
-17,000
Sale Of Investment
0
0
Purchase Of Investment
-16,000
-17,000
Capital Expenditure Reported
-171,000
-243,000
Operating Cash Flow
643,000
537,000
Cash Flow From Continuing Operating Activities
643,000
537,000
Change In Working Capital
-83,000
-30,000
Change In Other Current Liabilities
-59,000
-203,000
Change In Other Current Assets
-65,000
-16,000
Change In Payables And Accrued Expense
49,000
229,000
Change In Accrued Expense
-66,000
34,000
Change In Payable
115,000
195,000
Change In Account Payable
40,000
323,000
Change In Tax Payable
75,000
-128,000
Change In Income Tax Payable
75,000
-128,000
Change In Prepaid Assets
-4,000
-14,000
Change In Inventory
-221,000
4,000
Change In Receivables
217,000
-30,000
Other Non Cash Items
31,000
24,000
Stock Based Compensation
13,000
8,000
Deferred Tax
43,000
-70,000
Deferred Income Tax
43,000
-70,000
Depreciation Amortization Depletion
176,000
162,000
Depreciation And Amortization
162,000
Depreciation
162,000
Operating Gains Losses
16,000
97,000
Pension And Employee Benefit Expense
6,000
4,000
Earnings Losses From Equity Investments
8,000
9,000
Gain Loss On Investment Securities
-9,000
83,000
Net Income From Continuing Operations
482,000
202,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.0B▲ $3.7B+23.7%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 10.0%▲ 23.8%+13.8pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 20.1%▲ 16.2%-3.8pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 7.7%▲ 13.0%+5.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.7B/qtr (≈$14.8B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
2.31x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$472M
vs Positive
Operating Cash Flow
$643M
Latest quarter · Buffett's cash reality check
ROIC
2.9%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.3x
Net Assets: $8.2B
Asset Context — Aluminum
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Aluminum. You can manually compare AA against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.52%
Low — management has little skin in the game
Return on Equity (ROE)
5.9%
Weak — poor returns on equity
Return on Assets (ROA)
2.4%
Fair — average asset utilization
Debt Trend YoY
+116.7% YoY
Debt is growing — management is leveraging up
Leadership Team
William Oplinger
President, CEO & Director
Age 58
Pay: $3,768,357
0.780% of net income
Molly Beerman
Executive VP & CFO
Age 61
Pay: $1,696,610
0.351% of net income
Matthew Reed
Executive VP & COO
Age 52
Pay: $1,609,401
0.333% of net income
Heather Hudak
Senior Vice President of Tax
Louis Langlois CPA
Senior Vice President of Treasury & Capital Markets
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
11.11%
29,315,742
FMR, LLC
6.44%
16,996,106
Vanguard Portfolio Management LLC
4.92%
12,995,948
Vanguard Capital Management LLC
4.52%
11,926,055
Eagle Capital Management LLC
4.50%
11,879,807
State Street Corporation
4.12%
10,875,945
Dimensional Fund Advisors LP
2.99%
7,895,028
Geode Capital Management, LLC
2.21%
5,829,945
Risk Analysis
Beta (Market Risk)
1.84
High volatility — moves more than the market
Short Interest
4.5% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.58x
Conservative balance sheet — low financial risk
Current Ratio
2.31x
Strong liquidity — Graham approved
52-Week Price Range
Low: $35.12Current: $39.54High: $84.38
Currently at 9% of 52-week range
Alcoa Corporation (AA) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $35.67. Margin of safety: 0%. Gross profit margin: 23.8%. Operating margin: 16.2%. Net margin: 13.0%. Market cap: $10.4B. Sector: Basic Materials. Industry: Aluminum. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.