Stock fact sheet · data as of
Alcoa Corporation (AA): fair value, margin of safety and Wheel Score
Ticker symbol AA · Basic Materials · Aluminum · United States · Value
Is AA undervalued?
Alcoa Corporation (AA) closed at 40.58 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 75.74, which puts the price 46% below it. 6 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: DDM gives 5.89 while GLS Growth gives 235.59. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, AA is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 74, growth score 53, out of 100).
Nine valuation models for AA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 14.43 | -64% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 63.79 | +57% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 93.41 | +130% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 23.16 | -43% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 235.59 | +481% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 81.51 | +101% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 99.51 | +145% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.89 | -85% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 64.33 | +59% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.92 | -142% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 60.43 | +49% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - AA passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.2 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are high - ROIC 13.1%, ROE 18.9%, ROA 7.2% - with debt at 0.45 times equity and a free-cash-flow yield of 7.1%.
The dividend yield is 0.99% with a payout ratio of 7% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Aluminum 81%, Alumina 15%, Bauxite 2% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 13.1% |
|---|---|---|---|
| GLS Moat | 4.2 / 10 | ROE | 18.9% |
| Debt / equity | 0.45 | ROA | 7.2% |
| Free-cash-flow yield | 7.1% | Payout ratio | 7% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 51: Fair
AA scores 51 out of 100 on the Wheel Score (Fair band, 50-69) because it fails filter 4, financially healthy - Piotroski 5/9 (under 6). A stock must pass all 9 Wheel Trade Filters to reach 70. Otherwise the parts read: value strong, premium strong, moat fair, health fair, red flags good, option trading strong, stability fair.
Implied volatility is 52% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 138,810 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 7.0M shares a day on a market cap of $10.7B, with a beta of 1.83 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 46% below fair value | |
| Premium | Strong | implied volatility 52% | |
| Moat | Fair | moat 4.2/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Strong | 5,488 contracts a day, 138,810 open interest | |
| Stability | Fair | beta 1.83, $10.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 21 Jan 2027, 77 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aluminum
The 12 companies below are the closest to Alcoa Corporation by market cap within the Aluminum industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CENX Century Aluminum Company | 32.80 | 133.32 | +75% | 44Weak | $3.2B |
| CSTM Constellium SE | 22.71 | 44.02 | +48% | 54Fair | $3.1B |
| KALU Kaiser Aluminum Corporation | 110.74 | 249.76 | +56% | 44Weak | $1.8B |
| WMS Advanced Drainage Systems, Inc. | 144.18 | 122.12 | -18% | 37Weak | $10.9B |
| HMY Harmony Gold Mining Company Limited | 16.41 | 46.62 | +65% | 85Prime | $10.3B |
| ALB Albemarle Corporation | 94.97 | 108.03 | +12% | 78Good | $11.2B |
| OC Owens Corning | 127.80 | 178.38 | +28% | 48Weak | $10.1B |
| TX Ternium S.A. | 51.40 | 38.52 | -33% | 36Weak | $10.1B |
| HL Hecla Mining Company | 14.95 | 13.14 | -14% | 41Weak | $10.0B |
| IAG Iamgold Corporation | 17.47 | 54.47 | +68% | 82Good | $10.0B |
| HBM Hudbay Minerals Inc. | 22.22 | 27.53 | +19% | 73Good | $9.9B |
| SSL Sasol Limited | 15.28 | 19.76 | +23% | 76Good | $9.8B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AA
Is AA undervalued right now?
By the GLS models, yes: at 40.58 the stock is 46% below the average fair value of 75.74 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of AA and what does it mean?
AA scores 51 out of 100 (Fair) - it fails Wheel Trade Filter 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for AA?
75.74 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Alcoa Corporation report earnings next?
The next earnings report is due on 21 Jan 2027, 77 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does AA have listed options, and how liquid are they?
Yes. The nightly snapshot found 436 listed contracts with 138,810 open interest across all expiries and implied volatility of 52% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.