HOWMET AEROSPACE INC (1HWM.MI) Stock Fundamental Analysis
BIT:1HWM - Euronext Milan - US4432011082 - Common Stock - Currency: EUR
Taking everything into account, 1HWM scores 7 out of 10 in our fundamental rating. 1HWM was compared to 45 industry peers in the Aerospace & Defense industry. 1HWM gets an excellent profitability rating and is at the same time showing great financial health properties. 1HWM shows excellent growth, but is valued quite expensive already. With these ratings, 1HWM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1HWM was profitable.
In the past year 1HWM had a positive cash flow from operations.
1HWM had positive earnings in each of the past 5 years.
1HWM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.64%, 1HWM belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
1HWM has a better Return On Equity (26.17%) than 88.89% of its industry peers.
1HWM has a better Return On Invested Capital (15.58%) than 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HWM is above the industry average of 8.98%.
The 3 year average ROIC (11.81%) for 1HWM is below the current ROIC(15.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | 26.17% | ||
| ROIC | 15.58% |
ROA(3y)7.61%
ROA(5y)5.52%
ROE(3y)19.06%
ROE(5y)14.35%
ROIC(3y)11.81%
ROIC(5y)9.94%
1.3 Margins
1HWM has a Profit Margin of 16.61%. This is amongst the best in the industry. 1HWM outperforms 93.33% of its industry peers.
1HWM's Profit Margin has improved in the last couple of years.
1HWM has a better Operating Margin (23.52%) than 97.78% of its industry peers.
In the last couple of years the Operating Margin of 1HWM has grown nicely.
1HWM has a Gross Margin (32.18%) which is comparable to the rest of the industry.
1HWM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.52% | ||
| PM (TTM) | 16.61% | ||
| GM | 32.18% |
OM growth 3Y9.72%
OM growth 5Y6.18%
PM growth 3Y44.45%
PM growth 5Y18.67%
GM growth 3Y3.97%
GM growth 5Y3.11%
2. Health
2.1 Basic Checks
1HWM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1HWM has been reduced compared to 1 year ago.
The number of shares outstanding for 1HWM has been reduced compared to 5 years ago.
The debt/assets ratio for 1HWM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.07 indicates that 1HWM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.07, 1HWM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of 1HWM is 3.27, which is a good value as it means it would take 1HWM, 3.27 years of fcf income to pay off all of its debts.
1HWM has a Debt to FCF ratio of 3.27. This is in the better half of the industry: 1HWM outperforms 71.11% of its industry peers.
1HWM has a Debt/Equity ratio of 0.69. This is a neutral value indicating 1HWM is somewhat dependend on debt financing.
The Debt to Equity ratio of 1HWM (0.69) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 9.07 |
ROIC/WACC1.47
WACC10.61%
2.3 Liquidity
A Current Ratio of 2.30 indicates that 1HWM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.30, 1HWM belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Quick Ratio of 1.07 indicates that 1HWM should not have too much problems paying its short term obligations.
1HWM has a Quick ratio of 1.07. This is in the better half of the industry: 1HWM outperforms 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
1HWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.00%, which is quite impressive.
1HWM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.88% yearly.
The Revenue has grown by 10.01% in the past year. This is quite good.
1HWM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
EPS 1Y (TTM)49%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%50.88%
Revenue 1Y (TTM)10.01%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%6.47%
3.2 Future
The Earnings Per Share is expected to grow by 20.32% on average over the next years. This is a very strong growth
1HWM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y31.86%
EPS Next 2Y24.75%
EPS Next 3Y22.03%
EPS Next 5Y20.32%
Revenue Next Year8.94%
Revenue Next 2Y9.57%
Revenue Next 3Y9.45%
Revenue Next 5Y9.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 59.73 indicates a quite expensive valuation of 1HWM.
1HWM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.50. 1HWM is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 42.46, the valuation of 1HWM can be described as expensive.
1HWM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1HWM is more expensive than 71.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1HWM to the average of the S&P500 Index (36.44), we can say 1HWM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.73 | ||
| Fwd PE | 42.46 |
4.2 Price Multiples
1HWM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1HWM is more expensive than 68.89% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1HWM indicates a slightly more expensive valuation: 1HWM is more expensive than 64.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.62 | ||
| EV/EBITDA | 36.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1HWM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1HWM's earnings are expected to grow with 22.03% in the coming years.
PEG (NY)1.87
PEG (5Y)12.24
EPS Next 2Y24.75%
EPS Next 3Y22.03%
5. Dividend
5.1 Amount
1HWM has a yearly dividend return of 0.22%, which is pretty low.
Compared to an average industry Dividend Yield of 1.09, 1HWM is paying slightly less dividend.
With a Dividend Yield of 0.22, 1HWM pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of 1HWM is nicely growing with an annual growth rate of 16.52%!
Dividend Growth(5Y)16.52%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
10.37% of the earnings are spent on dividend by 1HWM. This is a low number and sustainable payout ratio.
1HWM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.37%
EPS Next 2Y24.75%
EPS Next 3Y22.03%
BIT:1HWM (7/11/2025, 7:00:00 PM)
153.5
+153.5 (+Infinity%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners94.49%
Inst Owner ChangeN/A
Ins Owners1.05%
Ins Owner ChangeN/A
Market Cap61.96B
Analysts80.67
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.23
Dividend Growth(5Y)16.52%
DP10.37%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.76%
Min EPS beat(2)2.1%
Max EPS beat(2)9.41%
EPS beat(4)4
Avg EPS beat(4)7.31%
Min EPS beat(4)2.1%
Max EPS beat(4)10.4%
EPS beat(8)8
Avg EPS beat(8)7.22%
EPS beat(12)10
Avg EPS beat(12)6.08%
EPS beat(16)14
Avg EPS beat(16)5.42%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)1.35%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)1.48%
Revenue beat(16)9
Avg Revenue beat(16)0.63%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.73 | ||
| Fwd PE | 42.46 | ||
| P/S | 9.51 | ||
| P/FCF | 70.62 | ||
| P/OCF | 52.22 | ||
| P/B | 14.97 | ||
| P/tB | 244.04 | ||
| EV/EBITDA | 36.29 |
EPS(TTM)2.57
EY1.67%
EPS(NY)3.62
Fwd EY2.36%
FCF(TTM)2.17
FCFY1.42%
OCF(TTM)2.94
OCFY1.92%
SpS16.15
BVpS10.25
TBVpS0.63
PEG (NY)1.87
PEG (5Y)12.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | 26.17% | ||
| ROCE | 19.24% | ||
| ROIC | 15.58% | ||
| ROICexc | 16.55% | ||
| ROICexgc | 34.31% | ||
| OM | 23.52% | ||
| PM (TTM) | 16.61% | ||
| GM | 32.18% | ||
| FCFM | 13.46% |
ROA(3y)7.61%
ROA(5y)5.52%
ROE(3y)19.06%
ROE(5y)14.35%
ROIC(3y)11.81%
ROIC(5y)9.94%
ROICexc(3y)12.73%
ROICexc(5y)10.88%
ROICexgc(3y)28.49%
ROICexgc(5y)24.58%
ROCE(3y)14.58%
ROCE(5y)12.27%
ROICexcg growth 3Y22.26%
ROICexcg growth 5Y20.98%
ROICexc growth 3Y24.64%
ROICexc growth 5Y14.79%
OM growth 3Y9.72%
OM growth 5Y6.18%
PM growth 3Y44.45%
PM growth 5Y18.67%
GM growth 3Y3.97%
GM growth 5Y3.11%
F-Score9
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 128.32% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.89% | ||
| Profit Quality | 81.02% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 9.07 |
F-Score9
WACC10.61%
ROIC/WACC1.47
Cap/Depr(3y)89.74%
Cap/Depr(5y)84.39%
Cap/Sales(3y)3.68%
Cap/Sales(5y)4.02%
Profit Quality(3y)96.58%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)49%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%50.88%
EPS Next Y31.86%
EPS Next 2Y24.75%
EPS Next 3Y22.03%
EPS Next 5Y20.32%
Revenue 1Y (TTM)10.01%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%6.47%
Revenue Next Year8.94%
Revenue Next 2Y9.57%
Revenue Next 3Y9.45%
Revenue Next 5Y9.61%
EBIT growth 1Y35.6%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year41.1%
EBIT Next 3Y22.91%
EBIT Next 5Y18.33%
FCF growth 1Y100.79%
FCF growth 3Y57.51%
FCF growth 5YN/A
OCF growth 1Y96.01%
OCF growth 3Y42.45%
OCF growth 5Y23%