HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HWM - US4432011082 - Common Stock
224.89 USD
+0.63 (+0.28%)
224.2 USD
-0.69 (-0.31%)
Overall HWM gets a fundamental rating of 7 out of 10. We evaluated HWM against 72 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings would make HWM suitable for 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.
- HWM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 12.96%, HWM belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
- 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.
- HWM has a better Return On Invested Capital (16.94%) than 97.22% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HWM is above the industry average of 8.56%.
- 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
- The Profit Margin of HWM (18.16%) is better than 95.83% of its industry peers.
- In the last couple of years the Profit Margin of HWM has grown nicely.
- With an excellent Operating Margin value of 25.05%, HWM belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
- HWM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 33.43%, HWM is in the better half of the industry, outperforming 73.61% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HWM is still creating some value.
- HWM has less shares outstanding than it did 1 year ago.
- HWM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HWM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 11.00 indicates that HWM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HWM (11.00) is better than 83.33% 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.
- HWM's Debt to FCF ratio of 2.49 is amongst the best of the industry. HWM outperforms 90.28% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that 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 66.67% of its industry peers.
- 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 | 11 |
ROIC/WACC1.79
WACC9.49%
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 48.61% of its industry peers.
- HWM has a Quick Ratio of 1.14. This is a normal value and indicates that HWM is financially healthy and should not expect problems in meeting its short term obligations.
- HWM has a Quick ratio of 1.14. This is in the lower half of the industry: HWM underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 39.52% over the past year.
- 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.
- HWM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
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 Y38.71%
EPS Next 2Y29.46%
EPS Next 3Y25.49%
EPS Next 5Y20.94%
Revenue Next Year10.64%
Revenue Next 2Y10.86%
Revenue Next 3Y10.74%
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
- The Price/Earnings ratio is 65.00, which means the current valuation is very expensive for HWM.
- HWM's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of HWM to the average of the S&P500 Index (27.38), we can say HWM is valued expensively.
- The Price/Forward Earnings ratio is 49.88, which means the current valuation is very expensive for HWM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HWM is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. HWM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65 | ||
| Fwd PE | 49.88 |
4.2 Price Multiples
- HWM's Enterprise Value to EBITDA is on the same level as the industry average.
- HWM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.7 | ||
| EV/EBITDA | 40.75 |
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 25.49% in the coming years.
PEG (NY)1.68
PEG (5Y)13.33
EPS Next 2Y29.46%
EPS Next 3Y25.49%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.21%, HWM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.34, HWM pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.21, HWM pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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
- HWM pays out 11.33% of its income as dividend. This is a sustainable payout ratio.
- HWM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.33%
EPS Next 2Y29.46%
EPS Next 3Y25.49%
224.89
+0.63 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-12 2026-02-12/amc
Inst Owners94.77%
Inst Owner Change-0.07%
Ins Owners1.1%
Ins Owner Change-0.45%
Market Cap90.42B
Revenue(TTM)7.97B
Net Income(TTM)1.45B
Analysts82.76
Price Target241.51 (7.39%)
Short Float %2.62%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.27
Dividend Growth(5Y)16.52%
DP11.33%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)4.09%
PT rev (3m)16.54%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65 | ||
| Fwd PE | 49.88 | ||
| P/S | 11.34 | ||
| P/FCF | 70.7 | ||
| P/OCF | 52.88 | ||
| P/B | 17.58 | ||
| P/tB | 145.14 | ||
| EV/EBITDA | 40.75 |
EPS(TTM)3.46
EY1.54%
EPS(NY)4.51
Fwd EY2%
FCF(TTM)3.18
FCFY1.41%
OCF(TTM)4.25
OCFY1.89%
SpS19.84
BVpS12.79
TBVpS1.55
PEG (NY)1.68
PEG (5Y)13.33
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 | 11 |
F-Score9
WACC9.49%
ROIC/WACC1.79
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 Y38.71%
EPS Next 2Y29.46%
EPS Next 3Y25.49%
EPS Next 5Y20.94%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%13.84%
Revenue Next Year10.64%
Revenue Next 2Y10.86%
Revenue Next 3Y10.74%
Revenue Next 5Y10.1%
EBIT growth 1Y28.9%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year46.89%
EBIT Next 3Y24.91%
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.
Can you provide the valuation status for HOWMET AEROSPACE INC?
ChartMill assigns a valuation rating of 3 / 10 to HOWMET AEROSPACE INC (HWM). This can be considered as Overvalued.
How profitable is HOWMET AEROSPACE INC (HWM) stock?
HOWMET AEROSPACE INC (HWM) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for HWM stock?
The Earnings per Share (EPS) of HOWMET AEROSPACE INC (HWM) is expected to grow by 38.71% in the next year.
Is the dividend of HOWMET AEROSPACE INC sustainable?
The dividend rating of HOWMET AEROSPACE INC (HWM) is 5 / 10 and the dividend payout ratio is 11.33%.