HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - NYSE:HWM - US4432011082 - Common Stock
200.565 USD
+2.06 (+1.04%)
Taking everything into account, HWM scores 7 out of 10 in our fundamental rating. HWM was compared to 70 industry peers in the Aerospace & Defense industry. HWM gets an excellent profitability rating and is at the same time showing great financial health properties. HWM is valued quite expensive, but it does show an excellent growth. With these ratings, HWM could be worth investigating further 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.
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 12.63%, HWM belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
The Return On Equity of HWM (27.67%) is better than 97.14% of its industry peers.
HWM has a Return On Invested Capital of 16.08%. This is amongst the best in the industry. HWM outperforms 98.57% 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 8.41%.
The 3 year average ROIC (11.81%) for HWM is below the current ROIC(16.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.63% | ||
| ROE | 27.67% | ||
| ROIC | 16.08% |
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
The Profit Margin of HWM (18.07%) is better than 97.14% of its industry peers.
In the last couple of years the Profit Margin of HWM has grown nicely.
HWM's Operating Margin of 24.30% is amongst the best of the industry. HWM outperforms 98.57% of its industry peers.
HWM's Operating Margin has improved in the last couple of years.
HWM has a Gross Margin of 32.69%. This is in the better half of the industry: HWM outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of HWM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 18.07% | ||
| GM | 32.69% |
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.
Compared to 1 year ago, HWM has less shares outstanding
The number of shares outstanding for HWM has been reduced compared to 5 years ago.
The debt/assets ratio for HWM has been reduced compared to a year ago.
2.2 Solvency
HWM has an Altman-Z score of 9.92. This indicates that HWM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HWM (9.92) is better than 81.43% of its industry peers.
The Debt to FCF ratio of HWM is 3.20, which is a good value as it means it would take HWM, 3.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HWM (3.20) is better than 85.71% of its industry peers.
HWM has a Debt/Equity ratio of 0.65. This is a neutral value indicating HWM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, HWM is not doing good in the industry: 67.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 9.92 |
ROIC/WACC1.7
WACC9.45%
2.3 Liquidity
HWM has a Current Ratio of 2.31. This indicates that HWM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HWM (2.31) is comparable to the rest of the industry.
HWM has a Quick Ratio of 1.08. This is a normal value and indicates that HWM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, HWM is doing worse than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
HWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.39%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.88% on average over the past years.
The Revenue has grown by 8.85% in the past year. This is quite good.
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)44.39%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%35.82%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%9.2%
3.2 Future
The Earnings Per Share is expected to grow by 20.95% 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 9.94% yearly.
EPS Next Y36.37%
EPS Next 2Y27.6%
EPS Next 3Y24.07%
EPS Next 5Y20.95%
Revenue Next Year9.96%
Revenue Next 2Y10.26%
Revenue Next 3Y10.2%
Revenue Next 5Y9.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 62.29, which means the current valuation is very expensive for HWM.
The rest of the industry has a similar Price/Earnings ratio as HWM.
Compared to an average S&P500 Price/Earnings ratio of 26.89, HWM is valued quite expensively.
HWM is valuated quite expensively with a Price/Forward Earnings ratio of 45.79.
HWM's Price/Forward Earnings is on the same level as the industry average.
HWM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.29 | ||
| Fwd PE | 45.79 |
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 | 79.42 | ||
| EV/EBITDA | 38.39 |
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 24.07% in the coming years.
PEG (NY)1.71
PEG (5Y)12.77
EPS Next 2Y27.6%
EPS Next 3Y24.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, HWM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.11, 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 paid a dividend for at least 10 years, which is 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
10.75% of the earnings are spent on dividend by HWM. This is a low number and sustainable payout ratio.
HWM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.75%
EPS Next 2Y27.6%
EPS Next 3Y24.07%
NYSE:HWM (10/27/2025, 11:26:45 AM)
200.565
+2.06 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners95.94%
Inst Owner Change0.12%
Ins Owners1.11%
Ins Owner Change2.85%
Market Cap80.85B
Revenue(TTM)7.72B
Net Income(TTM)1.40B
Analysts81.43
Price Target207.24 (3.33%)
Short Float %2.42%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.27
Dividend Growth(5Y)16.52%
DP10.75%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.37%
Min EPS beat(2)3.32%
Max EPS beat(2)9.41%
EPS beat(4)4
Avg EPS beat(4)5.54%
Min EPS beat(4)2.1%
Max EPS beat(4)9.41%
EPS beat(8)8
Avg EPS beat(8)7.53%
EPS beat(12)10
Avg EPS beat(12)5.88%
EPS beat(16)14
Avg EPS beat(16)5.61%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)1.23%
Revenue beat(8)5
Avg Revenue beat(8)1.23%
Revenue beat(12)8
Avg Revenue beat(12)1.51%
Revenue beat(16)10
Avg Revenue beat(16)0.87%
PT rev (1m)1.46%
PT rev (3m)10.39%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)4.21%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.29 | ||
| Fwd PE | 45.79 | ||
| P/S | 10.47 | ||
| P/FCF | 79.42 | ||
| P/OCF | 56.82 | ||
| P/B | 16.04 | ||
| P/tB | 158.54 | ||
| EV/EBITDA | 38.39 |
EPS(TTM)3.22
EY1.61%
EPS(NY)4.38
Fwd EY2.18%
FCF(TTM)2.53
FCFY1.26%
OCF(TTM)3.53
OCFY1.76%
SpS19.15
BVpS12.51
TBVpS1.27
PEG (NY)1.71
PEG (5Y)12.77
Graham Number30.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.63% | ||
| ROE | 27.67% | ||
| ROCE | 19.86% | ||
| ROIC | 16.08% | ||
| ROICexc | 17.07% | ||
| ROICexgc | 34.78% | ||
| OM | 24.3% | ||
| PM (TTM) | 18.07% | ||
| GM | 32.69% | ||
| FCFM | 13.18% |
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-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 145.16% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.03% | ||
| Profit Quality | 72.97% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 9.92 |
F-Score8
WACC9.45%
ROIC/WACC1.7
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)44.39%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%35.82%
EPS Next Y36.37%
EPS Next 2Y27.6%
EPS Next 3Y24.07%
EPS Next 5Y20.95%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%9.2%
Revenue Next Year9.96%
Revenue Next 2Y10.26%
Revenue Next 3Y10.2%
Revenue Next 5Y9.94%
EBIT growth 1Y30.19%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year44.51%
EBIT Next 3Y23.66%
EBIT Next 5Y17.33%
FCF growth 1Y75.52%
FCF growth 3Y57.51%
FCF growth 5YN/A
OCF growth 1Y84.33%
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 62.29 and the Price/Book (PB) ratio is 16.04.
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 36.37% in the next year.