Is AA a high-quality business?

AlphaMadera's AlphaQuality grade scores Alcoa Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how AA compares to a Buffett-style quality bar.

What is Alcoa Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to AA based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes AA a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

AA - Alcoa Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $75.60 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Other Commodity Producers

AlphaQuality — archetype-weighted quantitative grade

C- 49.2 / 100 composite

Composite Grade

Composite of six pillars weighted for other commodity producers businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D 33.9

5yr Avg ROIC 7.7% 48/100
Operating Margin Trend -2.65 pp/yr 0/100

Capital Efficiency

Weight: 10%

F 15.7

5yr Avg ROE 2.8% 24/100
5yr Share-Count CAGR 8.5% 0/100

Growth Quality

Weight: 5%

C+ 59.7

5yr Revenue CAGR 0.6% 25/100
5yr EPS CAGR 18.4% 93/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

C 54.4

5yr FCF Margin 1.5% 33/100
5yr FCF/NI Conversion 0.81x 81/100

Balance Sheet

Weight: 25%

B 74.8

Net Debt / EBITDA 0.54x 90/100
Interest Coverage (EBIT/Int) 7.85x 76/100
Altman Z-Score 2.16 46/100

Stability

Weight: 20%

D 35.9

EPS Volatility (σ/μ) 0.86 6/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

6 of 6 gurus held; 2 new buys; 3 added; 1 trimmed.

Holders: 6 +2
Avg Δ position: +637.1%
New buys: 2
Full exits: 0

Soros new
Dalio new
Cooperman increased +2619%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.