HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HWM - US4432011082 - Common Stock
192.39 USD
+1.03 (+0.54%)
192.39 USD
0 (0%)
Taking everything into account, HWM scores 7 out of 10 in our fundamental rating. HWM was compared to 72 industry peers in the Aerospace & Defense industry. HWM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HWM shows excellent growth, but is valued quite expensive already. This makes HWM very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HWM was profitable.
HWM had a positive operating cash flow in the past year.
In the past 5 years HWM has always been profitable.
HWM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HWM (12.96%) is better than 97.22% of its industry peers.
Looking at the Return On Equity, with a value of 28.15%, HWM belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
The Return On Invested Capital of HWM (16.94%) is better than 98.61% of its industry peers.
HWM had an Average Return On Invested Capital over the past 3 years of 11.81%. This is above the industry average of 8.58%.
The last Return On Invested Capital (16.94%) for HWM is above the 3 year average (11.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.96% | ||
| ROE | 28.15% | ||
| ROIC | 16.94% |
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
Looking at the Profit Margin, with a value of 18.16%, HWM belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
HWM's Profit Margin has improved in the last couple of years.
HWM has a Operating Margin of 25.05%. This is amongst the best in the industry. HWM outperforms 98.61% of its industry peers.
In the last couple of years the Operating Margin of HWM has grown nicely.
The Gross Margin of HWM (33.43%) is better than 72.22% of its industry peers.
In the last couple of years the Gross Margin of HWM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.05% | ||
| PM (TTM) | 18.16% | ||
| GM | 33.43% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HWM is creating some value.
The number of shares outstanding for HWM has been reduced compared to 1 year ago.
HWM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HWM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.66 indicates that HWM is not in any danger for bankruptcy at the moment.
HWM's Altman-Z score of 9.66 is amongst the best of the industry. HWM outperforms 86.11% of its industry peers.
The Debt to FCF ratio of HWM is 2.49, which is a good value as it means it would take HWM, 2.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HWM (2.49) is better than 90.28% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that HWM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, HWM is not doing good in the industry: 68.06% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for HWM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 9.66 |
ROIC/WACC1.75
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.35 indicates that HWM has no problem at all paying its short term obligations.
HWM's Current ratio of 2.35 is in line compared to the rest of the industry. HWM outperforms 50.00% of its industry peers.
A Quick Ratio of 1.14 indicates that HWM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, HWM is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
HWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.52%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.88% on average over the past years.
Looking at the last year, HWM shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
Measured over the past years, HWM shows a small growth in Revenue. The Revenue has been growing by 0.92% on average per year.
EPS 1Y (TTM)39.52%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%33.8%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%13.84%
3.2 Future
The Earnings Per Share is expected to grow by 20.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.
EPS Next Y38.76%
EPS Next 2Y29.49%
EPS Next 3Y25.39%
EPS Next 5Y20.94%
Revenue Next Year10.65%
Revenue Next 2Y10.81%
Revenue Next 3Y10.6%
Revenue Next 5Y10.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HWM is valuated quite expensively with a Price/Earnings ratio of 55.60.
HWM's Price/Earnings is on the same level as the industry average.
HWM is valuated expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
HWM is valuated quite expensively with a Price/Forward Earnings ratio of 42.65.
The rest of the industry has a similar Price/Forward Earnings ratio as HWM.
HWM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.6 | ||
| Fwd PE | 42.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HWM.
HWM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.48 | ||
| EV/EBITDA | 34.84 |
4.3 Compensation for Growth
HWM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HWM may justify a higher PE ratio.
A more expensive valuation may be justified as HWM's earnings are expected to grow with 25.39% in the coming years.
PEG (NY)1.43
PEG (5Y)11.4
EPS Next 2Y29.49%
EPS Next 3Y25.39%
5. Dividend
5.1 Amount
HWM has a yearly dividend return of 0.24%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, HWM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.24, HWM pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
On average, the dividend of HWM grows each year by 16.52%, which is quite nice.
HWM has been paying a dividend for at least 10 years, so it has a reliable track record.
HWM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.52%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
11.33% of the earnings are spent on dividend by HWM. This is a low number and sustainable payout ratio.
The dividend of HWM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.33%
EPS Next 2Y29.49%
EPS Next 3Y25.39%
192.39
+1.03 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change2.4%
Ins Owners1.1%
Ins Owner Change6.25%
Market Cap77.35B
Revenue(TTM)7.97B
Net Income(TTM)1.45B
Analysts81.38
Price Target232.01 (20.59%)
Short Float %2.47%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.27
Dividend Growth(5Y)16.52%
DP11.33%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.32%
Max EPS beat(2)3.81%
EPS beat(4)4
Avg EPS beat(4)4.66%
Min EPS beat(4)2.1%
Max EPS beat(4)9.41%
EPS beat(8)8
Avg EPS beat(8)7.25%
EPS beat(12)11
Avg EPS beat(12)6.23%
EPS beat(16)14
Avg EPS beat(16)5.49%
Revenue beat(2)2
Avg Revenue beat(2)1.25%
Min Revenue beat(2)1.23%
Max Revenue beat(2)1.26%
Revenue beat(4)2
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)1.26%
Revenue beat(8)5
Avg Revenue beat(8)1.04%
Revenue beat(12)9
Avg Revenue beat(12)1.76%
Revenue beat(16)11
Avg Revenue beat(16)1.11%
PT rev (1m)9.47%
PT rev (3m)14.59%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)1.14%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.6 | ||
| Fwd PE | 42.65 | ||
| P/S | 9.7 | ||
| P/FCF | 60.48 | ||
| P/OCF | 45.24 | ||
| P/B | 15.04 | ||
| P/tB | 124.16 | ||
| EV/EBITDA | 34.84 |
EPS(TTM)3.46
EY1.8%
EPS(NY)4.51
Fwd EY2.34%
FCF(TTM)3.18
FCFY1.65%
OCF(TTM)4.25
OCFY2.21%
SpS19.84
BVpS12.79
TBVpS1.55
PEG (NY)1.43
PEG (5Y)11.4
Graham Number31.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.96% | ||
| ROE | 28.15% | ||
| ROCE | 20.92% | ||
| ROIC | 16.94% | ||
| ROICexc | 18.2% | ||
| ROICexgc | 37% | ||
| OM | 25.05% | ||
| PM (TTM) | 18.16% | ||
| GM | 33.43% | ||
| FCFM | 16.04% |
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%
ROICexgc growth 3Y22.26%
ROICexgc 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 152.3% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.97% | ||
| Profit Quality | 88.33% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 9.66 |
F-Score9
WACC9.7%
ROIC/WACC1.75
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)39.52%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%33.8%
EPS Next Y38.76%
EPS Next 2Y29.49%
EPS Next 3Y25.39%
EPS Next 5Y20.94%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%13.84%
Revenue Next Year10.65%
Revenue Next 2Y10.81%
Revenue Next 3Y10.6%
Revenue Next 5Y10.1%
EBIT growth 1Y28.9%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year46.95%
EBIT Next 3Y24.83%
EBIT Next 5Y19.13%
FCF growth 1Y85.63%
FCF growth 3Y57.51%
FCF growth 5YN/A
OCF growth 1Y90.42%
OCF growth 3Y42.45%
OCF growth 5Y23%
HOWMET AEROSPACE INC / HWM FAQ
Can you provide the ChartMill fundamental rating for HOWMET AEROSPACE INC?
ChartMill assigns a fundamental rating of 7 / 10 to HWM.
What is the valuation status for HWM stock?
ChartMill assigns a valuation rating of 3 / 10 to HOWMET AEROSPACE INC (HWM). This can be considered as Overvalued.
Can you provide the profitability details for HOWMET AEROSPACE INC?
HOWMET AEROSPACE INC (HWM) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for HWM stock?
The Price/Earnings (PE) ratio for HOWMET AEROSPACE INC (HWM) is 55.6 and the Price/Book (PB) ratio is 15.04.
What is the earnings growth outlook for HOWMET AEROSPACE INC?
The Earnings per Share (EPS) of HOWMET AEROSPACE INC (HWM) is expected to grow by 38.76% in the next year.