HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HWM • US4432011082
225.07 USD
+1.91 (+0.86%)
Last: Feb 9, 2026, 03:59 PM
Taking everything into account, HWM scores 7 out of 10 in our fundamental rating. HWM was compared to 73 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 expensive, but it does show an excellent growth. 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.
- In the past 5 years HWM always reported a positive cash flow from operatings.
1.2 Ratios
- HWM's Return On Assets of 12.96% is amongst the best of the industry. HWM outperforms 95.89% 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 95.89% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 16.94%, HWM belongs to the best of the industry, outperforming 95.89% of the companies in the same industry.
- HWM had an Average Return On Invested Capital over the past 3 years of 11.81%. This is above the industry average of 8.67%.
- The 3 year average ROIC (11.81%) for HWM is below the current ROIC(16.94%), indicating increased profibility in the last year.
| 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 95.89% of the companies in the same industry.
- HWM's Profit Margin has improved in the last couple of years.
- HWM's Operating Margin of 25.05% is amongst the best of the industry. HWM outperforms 98.63% of its industry peers.
- HWM's Operating Margin has improved in the last couple of years.
- HWM has a better Gross Margin (33.43%) than 73.97% 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
- 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 10.93 indicates that HWM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.93, HWM belongs to the top of the industry, outperforming 86.30% 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.
- The Debt to FCF ratio of HWM (2.49) is better than 89.04% 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.
- With a Debt to Equity ratio value of 0.62, HWM is not doing good in the industry: 65.75% of the companies in the same industry are doing better.
- 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 | 10.93 |
ROIC/WACC1.72
WACC9.86%
2.3 Liquidity
- HWM has a Current Ratio of 2.35. This indicates that HWM is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.35, HWM is in line with its industry, outperforming 49.32% of the companies in the same industry.
- 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.
- The Quick ratio of HWM (1.14) is worse than 67.12% of its industry peers.
| 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
- HWM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.94% yearly.
- Based on estimates for the next years, HWM will show a quite strong growth in Revenue. The Revenue will grow by 10.10% on average per year.
EPS Next Y38.81%
EPS Next 2Y29.55%
EPS Next 3Y25.69%
EPS Next 5Y20.94%
Revenue Next Year10.65%
Revenue Next 2Y11.07%
Revenue Next 3Y10.91%
Revenue Next 5Y10.1%
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
- With a Price/Earnings ratio of 65.05, HWM can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as HWM.
- HWM is valuated expensively when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
- HWM is valuated quite expensively with a Price/Forward Earnings ratio of 49.85.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HWM is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, HWM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.05 | ||
| Fwd PE | 49.85 |
4.2 Price Multiples
- HWM's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HWM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.75 | ||
| EV/EBITDA | 40.44 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HWM has an outstanding profitability rating, which may justify a higher PE ratio.
- HWM's earnings are expected to grow with 25.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.68
PEG (5Y)13.34
EPS Next 2Y29.55%
EPS Next 3Y25.69%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.23%, HWM is not a good candidate for dividend investing.
- HWM's Dividend Yield is a higher than the industry average which is at 0.36.
- With a Dividend Yield of 0.23, HWM pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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 2Y29.55%
EPS Next 3Y25.69%
NYSE:HWM (2/9/2026, 3:59:57 PM)
225.07
+1.91 (+0.86%)
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/bmo
Inst Owners94.77%
Inst Owner Change-3.35%
Ins Owners1.1%
Ins Owner Change1.68%
Market Cap90.49B
Revenue(TTM)7.97B
Net Income(TTM)1.45B
Analysts82.76
Price Target245.64 (9.14%)
Short Float %2.97%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.27
Dividend Growth(5Y)16.52%
DP11.33%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-06 2026-02-06 (0.12)
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)5.24%
PT rev (3m)15.9%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.05 | ||
| Fwd PE | 49.85 | ||
| P/S | 11.35 | ||
| P/FCF | 70.75 | ||
| P/OCF | 52.92 | ||
| P/B | 17.6 | ||
| P/tB | 145.25 | ||
| EV/EBITDA | 40.44 |
EPS(TTM)3.46
EY1.54%
EPS(NY)4.51
Fwd EY2.01%
FCF(TTM)3.18
FCFY1.41%
OCF(TTM)4.25
OCFY1.89%
SpS19.84
BVpS12.79
TBVpS1.55
PEG (NY)1.68
PEG (5Y)13.34
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 | 10.93 |
F-Score9
WACC9.86%
ROIC/WACC1.72
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 Y38.81%
EPS Next 2Y29.55%
EPS Next 3Y25.69%
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 2Y11.07%
Revenue Next 3Y10.91%
Revenue Next 5Y10.1%
EBIT growth 1Y28.9%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year46.89%
EBIT Next 3Y25.04%
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 38.81% 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%.