HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - NYSE:HWM - US4432011082 - Common Stock
198.51 USD
-1.59 (-0.79%)
198.51 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HWM. HWM was compared to 70 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. These ratings would make HWM suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
HWM had positive earnings in the past year.
In the past year HWM had a positive cash flow from operations.
HWM had positive earnings in each of the past 5 years.
In the past 5 years HWM always reported a positive cash flow from operatings.
1.2 Ratios
HWM has a better Return On Assets (12.63%) than 95.71% of its industry peers.
HWM has a better Return On Equity (27.67%) 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.
Measured over the past 3 years, the Average Return On Invested Capital for HWM 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
Looking at the Profit Margin, with a value of 18.07%, HWM belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Profit Margin of HWM has grown nicely.
With an excellent Operating Margin value of 24.30%, HWM belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HWM is still 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.
HWM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.92 indicates that HWM is not in any danger for bankruptcy at the moment.
HWM has a better Altman-Z score (9.92) 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.
HWM's Debt to FCF ratio of 3.20 is amongst the best of the industry. HWM outperforms 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.
The Debt to Equity ratio of HWM (0.65) is worse than 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 9.92 |
ROIC/WACC1.71
WACC9.4%
2.3 Liquidity
A Current Ratio of 2.31 indicates that HWM has no problem at all paying its short term obligations.
HWM's Current ratio of 2.31 is in line compared to the rest of the industry. HWM outperforms 50.00% of its industry peers.
A Quick Ratio of 1.08 indicates that HWM should not have too much problems paying 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
The Earnings Per Share has grown by an impressive 44.39% over the past year.
Measured over the past 5 years, HWM shows a small growth in Earnings Per Share. The EPS has been growing by 4.88% on average per year.
Looking at the last year, HWM shows a quite strong growth in Revenue. The Revenue has grown by 8.85% 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)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
HWM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.95% yearly.
Based on estimates for the next years, HWM will show a quite strong growth in Revenue. The Revenue will grow by 9.94% on average per year.
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.
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 61.65, HWM can be considered very expensive at the moment.
HWM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.89. HWM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 45.33, which means the current valuation is very expensive for HWM.
HWM's Price/Forward Earnings is on the same level as the industry average.
HWM is valuated expensively when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.65 | ||
| Fwd PE | 45.33 |
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 | 78.61 | ||
| EV/EBITDA | 38.39 |
4.3 Compensation for Growth
HWM's 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 24.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)12.64
EPS Next 2Y27.6%
EPS Next 3Y24.07%
5. Dividend
5.1 Amount
HWM has a yearly dividend return of 0.24%, which is pretty low.
HWM's Dividend Yield is a higher than the industry average which is at 1.11.
Compared to an average S&P500 Dividend Yield of 2.31, HWM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of HWM is nicely growing with an annual growth rate of 16.52%!
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
HWM pays out 10.75% 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.
DP10.75%
EPS Next 2Y27.6%
EPS Next 3Y24.07%
198.51
-1.59 (-0.79%)
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 Cap80.03B
Revenue(TTM)7.72B
Net Income(TTM)1.40B
Analysts81.43
Price Target207.24 (4.4%)
Short Float %2.77%
Short Ratio5.34
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 | 61.65 | ||
| Fwd PE | 45.33 | ||
| P/S | 10.36 | ||
| P/FCF | 78.61 | ||
| P/OCF | 56.24 | ||
| P/B | 15.87 | ||
| P/tB | 156.91 | ||
| EV/EBITDA | 38.39 |
EPS(TTM)3.22
EY1.62%
EPS(NY)4.38
Fwd EY2.21%
FCF(TTM)2.53
FCFY1.27%
OCF(TTM)3.53
OCFY1.78%
SpS19.15
BVpS12.51
TBVpS1.27
PEG (NY)1.69
PEG (5Y)12.64
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
WACC9.4%
ROIC/WACC1.71
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 61.65 and the Price/Book (PB) ratio is 15.87.
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.