HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - NYSE:HWM - US4432011082 - Common Stock
197.58 USD
-2.7 (-1.35%)
Overall HWM gets a fundamental rating of 7 out of 10. We evaluated HWM against 71 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making HWM a very profitable company, without any liquidiy or solvency issues. HWM shows excellent growth, but is valued quite expensive already. HWM also has an excellent dividend rating. This makes HWM very considerable for dividend and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HWM was profitable.
In the past year HWM had a positive cash flow from operations.
In the past 5 years HWM has always been profitable.
Each year in the past 5 years HWM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.96%, HWM belongs to the top of the industry, outperforming 97.18% of the companies in the same industry.
The Return On Equity of HWM (28.15%) is better than 97.18% of its industry peers.
With an excellent Return On Invested Capital value of 16.94%, HWM belongs to the best of the industry, outperforming 98.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HWM is above the industry average of 8.46%.
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
HWM has a better Profit Margin (18.16%) than 97.18% of its industry peers.
HWM's Profit Margin has improved in the last couple of years.
The Operating Margin of HWM (25.05%) is better than 98.59% of its industry peers.
HWM's Operating Margin has improved in the last couple of years.
HWM has a Gross Margin of 33.43%. This is in the better half of the industry: HWM outperforms 73.24% of its industry peers.
HWM's Gross Margin has improved in the last couple of years.
| 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
HWM 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 HWM has been reduced compared to 1 year ago.
The number of shares outstanding for HWM has been reduced compared to 5 years ago.
HWM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.03 indicates that HWM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.03, HWM belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
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.
HWM has a Debt to FCF ratio of 2.49. This is amongst the best in the industry. HWM outperforms 91.55% of its industry peers.
HWM has a Debt/Equity ratio of 0.62. This is a neutral value indicating HWM is somewhat dependend on debt financing.
HWM has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: HWM underperforms 66.20% of its industry peers.
Although HWM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 10.03 |
ROIC/WACC1.75
WACC9.66%
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 52.11% 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 63.38% 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.
HWM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.88% yearly.
Looking at the last year, HWM shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
The Revenue has been growing slightly by 0.92% on average over the past years.
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 21.22% on average over the next years. This is a very strong growth
HWM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
EPS Next Y37.19%
EPS Next 2Y28.28%
EPS Next 3Y24.82%
EPS Next 5Y21.22%
Revenue Next Year10.34%
Revenue Next 2Y10.49%
Revenue Next 3Y10.39%
Revenue Next 5Y10.05%
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.
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
With a Price/Earnings ratio of 57.10, HWM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HWM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.56. HWM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.64, HWM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as HWM.
The average S&P500 Price/Forward Earnings ratio is at 34.62. HWM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.1 | ||
| Fwd PE | 44.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HWM is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.28 | ||
| EV/EBITDA | 36.51 |
4.3 Compensation for Growth
The 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 24.82% in the coming years.
PEG (NY)1.54
PEG (5Y)11.71
EPS Next 2Y28.28%
EPS Next 3Y24.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.93%, HWM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.37, HWM pays a better dividend. On top of this HWM pays more dividend than 98.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, HWM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
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 2Y28.28%
EPS Next 3Y24.82%
NYSE:HWM (11/18/2025, 11:01:05 AM)
197.58
-2.7 (-1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners95.94%
Inst Owner Change2.24%
Ins Owners1.11%
Ins Owner Change7.45%
Market Cap79.65B
Revenue(TTM)7.97B
Net Income(TTM)1.45B
Analysts81.43
Price Target211.94 (7.27%)
Short Float %2.46%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
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)2.27%
PT rev (3m)5.55%
EPS NQ rev (1m)1.51%
EPS NQ rev (3m)2.03%
EPS NY rev (1m)0.75%
EPS NY rev (3m)4.05%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.1 | ||
| Fwd PE | 44.64 | ||
| P/S | 9.99 | ||
| P/FCF | 62.28 | ||
| P/OCF | 46.58 | ||
| P/B | 15.49 | ||
| P/tB | 127.85 | ||
| EV/EBITDA | 36.51 |
EPS(TTM)3.46
EY1.75%
EPS(NY)4.43
Fwd EY2.24%
FCF(TTM)3.17
FCFY1.61%
OCF(TTM)4.24
OCFY2.15%
SpS19.78
BVpS12.76
TBVpS1.55
PEG (NY)1.54
PEG (5Y)11.71
Graham Number31.51
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 | 10.03 |
F-Score9
WACC9.66%
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 Y37.19%
EPS Next 2Y28.28%
EPS Next 3Y24.82%
EPS Next 5Y21.22%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%13.84%
Revenue Next Year10.34%
Revenue Next 2Y10.49%
Revenue Next 3Y10.39%
Revenue Next 5Y10.05%
EBIT growth 1Y28.9%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year44.51%
EBIT Next 3Y23.66%
EBIT Next 5Y17.84%
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 57.1 and the Price/Book (PB) ratio is 15.49.
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 37.19% in the next year.