AlcoaXSWX:AA 65 Return-on-Tangible-Equity is 26.25% as of Mar. 2026. GuruFocus rates XSWX:AA with a GF Score™ of 65/100 and a GF Value™ of CHF25.17. The stock has 7 warning signs investors should review. Among 2,378 Metals & Mining companies, Alcoa ranks better than 86.8% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alcoa's annualized net income for the quarter that ended in Mar. 2026 was CHF1,338 Mil. Alcoa's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF5,098 Mil. Therefore, Alcoa's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.25%.
The historical rank and industry rank for Alcoa's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:AA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -24.14 Med: -0.65 Max: 20.92
Current: 16.88
During the past 13 years, Alcoa's highest Return-on-Tangible-Equity was 20.92%. The lowest was -24.14%. And the median was -0.65%.
XSWX:AA's Return-on-Tangible-Equity is ranked better than 86.8% of 2378
companies
in the Metals & Mining industry
Industry Median: -16.28
vs XSWX:AA: 16.88
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alcoa Return-on-Tangible-Equity Related Terms
Alcoa Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alcoa's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:AA vs CENX, CSTM, KALU: Return-on-Tangible-Equity Comparison
For the Aluminum subindustry, Alcoa's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alcoa Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Alcoa's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alcoa's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.25% mean?
Alcoa (XSWX:AA) has a Return-on-Tangible-Equity of 26.25% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alcoa and its competitors. According to the industry distribution chart, Alcoa ranks #314 out of 2378 companies in the Metals & Mining industry, placing it in the top 13.2%.
Is Alcoa's Return-on-Tangible-Equity too high?
Alcoa's current Return-on-Tangible-Equity is 26.25%. Based on the distribution chart, Alcoa ranks #314 out of 2378 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Alcoa has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Alcoa's Return-on-Tangible-Equity compare to CENX and CSTM?
According to the Metals & Mining industry distribution chart, Alcoa ranks #314 out of 2378 companies for Return-on-Tangible-Equity. This places Alcoa in the top 13% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alcoa and its competitors. Alcoa's current Return-on-Tangible-Equity is 26.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alcoa stock overvalued right now?
Alcoa (XSWX:AA) has a current Return-on-Tangible-Equity of 26.25%. The stock's GF Value™ is CHF25.17, compared to a current price of CHF43.03 — trading 71% above its estimated fair value. The current Return-on-Tangible-Equity is 26.25%. Alcoa's overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alcoa (XSWX:AA), the current Return-on-Tangible-Equity is 26.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alcoa (XSWX:AA) Overvalued in 2026?
Based on GuruFocus' analysis, Alcoa stock appears to be overvalued.
The current stock price of CHF43.03 is trading 71% above its estimated GF Value™ of CHF25.17.
Key valuation signals for XSWX:AA:
Return-on-Tangible-Equity: 26.25%
GF Value™: CHF25.17 vs. price of CHF43.03 (71% above fair value)
No single metric tells the full story. See the XSWX:AA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alcoa is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and manufacturing primary aluminum. It is one of the world's largest bauxite miners and alumina refiners by production volume, but sits outside the top-10 aluminum producers, a list dominated by Chinese companies. Profits are closely tied to prevailing commodity prices along the aluminum supply chain.Alcoa was the first mass producer of aluminum, launching the world-changing Hall-Heroult smelting process in the 1880s, making aluminum affordable. It listed as a public company in 1925. In 2016, Alcoa spun off its automotive and aerospace metal parts segment to focus on mining, smelting, and refining. It bought the 40% unowned balance of AWAC in mid-2024.
65GF Score
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