HOWMET AEROSPACE INC (HWM) Fundamental Analysis & Valuation

NYSE:HWM • US4432011082

259.09 USD
+0.25 (+0.1%)
Last: Mar 4, 2026, 12:37 PM
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This HWM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to HWM. HWM was compared to 78 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 shows excellent growth, but is valued quite expensive already. These ratings would make HWM suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

9

1. HWM Profitability Analysis

1.1 Basic Checks

  • HWM had positive earnings in the past year.
  • HWM had a positive operating cash flow in the past year.
  • In the past 5 years HWM has always been profitable.
  • HWM had a positive operating cash flow in each of the past 5 years.
HWM Yearly Net Income VS EBIT VS OCF VS FCFHWM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.47%, HWM belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
  • HWM's Return On Equity of 28.13% is amongst the best of the industry. HWM outperforms 92.31% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 18.73%, HWM belongs to the top of the industry, outperforming 98.72% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for HWM is significantly above the industry average of 9.15%.
  • The last Return On Invested Capital (18.73%) for HWM is above the 3 year average (15.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.47%
ROE 28.13%
ROIC 18.73%
ROA(3y)10.58%
ROA(5y)7.76%
ROE(3y)24.12%
ROE(5y)18.52%
ROIC(3y)15.24%
ROIC(5y)12.53%
HWM Yearly ROA, ROE, ROICHWM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • With an excellent Profit Margin value of 18.25%, HWM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HWM has grown nicely.
  • The Operating Margin of HWM (25.81%) is better than 93.59% of its industry peers.
  • HWM's Operating Margin has improved in the last couple of years.
  • HWM has a Gross Margin of 34.17%. This is in the better half of the industry: HWM outperforms 70.51% of its industry peers.
  • HWM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 25.81%
PM (TTM) 18.25%
GM 34.17%
OM growth 3Y14.45%
OM growth 5Y10.93%
PM growth 3Y30.32%
PM growth 5Y29.95%
GM growth 3Y7.45%
GM growth 5Y5.41%
HWM Yearly Profit, Operating, Gross MarginsHWM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. HWM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HWM is creating value.
  • Compared to 1 year ago, HWM has less shares outstanding
  • HWM has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for HWM has been reduced compared to a year ago.
HWM Yearly Shares OutstandingHWM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
HWM Yearly Total Debt VS Total AssetsHWM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • HWM has an Altman-Z score of 12.81. This indicates that HWM is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 12.81, HWM belongs to the top of the industry, outperforming 91.03% of the companies in the same industry.
  • HWM has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as HWM would need 2.13 years to pay back of all of its debts.
  • HWM has a better Debt to FCF ratio (2.13) than 92.31% of its industry peers.
  • A Debt/Equity ratio of 0.53 indicates that HWM is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.53, HWM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.13
Altman-Z 12.81
ROIC/WACC2.06
WACC9.1%
HWM Yearly LT Debt VS Equity VS FCFHWM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • HWM has a Current Ratio of 2.13. This indicates that HWM is financially healthy and has no problem in meeting its short term obligations.
  • HWM's Current ratio of 2.13 is on the low side compared to the rest of the industry. HWM is outperformed by 61.54% of its industry peers.
  • HWM has a Quick Ratio of 1.09. 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 (1.09) is worse than 66.67% of its industry peers.
  • The current and quick ratio evaluation for HWM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 1.09
HWM Yearly Current Assets VS Current LiabilitesHWM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. HWM Growth Analysis

3.1 Past

  • HWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.15%, which is quite impressive.
  • HWM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.93% yearly.
  • HWM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.06%.
  • The Revenue has been growing by 9.43% on average over the past years. This is quite good.
EPS 1Y (TTM)40.15%
EPS 3Y39.12%
EPS 5Y30.93%
EPS Q2Q%41.89%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y13.37%
Revenue growth 5Y9.43%
Sales Q2Q%14.65%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.56% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.
EPS Next Y19.75%
EPS Next 2Y19.03%
EPS Next 3Y17.36%
EPS Next 5Y16.56%
Revenue Next Year12.1%
Revenue Next 2Y11.66%
Revenue Next 3Y10.91%
Revenue Next 5Y9.96%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
HWM Yearly Revenue VS EstimatesHWM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
HWM Yearly EPS VS EstimatesHWM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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Find the best growth stocksShow best growing peers

2

4. HWM Valuation Analysis

4.1 Price/Earnings Ratio

  • HWM is valuated quite expensively with a Price/Earnings ratio of 68.72.
  • HWM's Price/Earnings is on the same level as the industry average.
  • HWM is valuated expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • HWM is valuated quite expensively with a Price/Forward Earnings ratio of 57.39.
  • 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 24.95. HWM is valued rather expensively when compared to this.
Industry RankSector Rank
PE 68.72
Fwd PE 57.39
HWM Price Earnings VS Forward Price EarningsHWM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • HWM's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as HWM.
Industry RankSector Rank
P/FCF 72.8
EV/EBITDA 44.09
HWM Per share dataHWM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.36% in the coming years.
PEG (NY)3.48
PEG (5Y)2.22
EPS Next 2Y19.03%
EPS Next 3Y17.36%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. HWM Dividend Analysis

5.1 Amount

  • HWM has a yearly dividend return of 0.18%, which is pretty low.
  • 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 0.18, HWM pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.18%

5.2 History

  • On average, the dividend of HWM grows each year by 77.58%, 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)77.58%
Div Incr Years3
Div Non Decr Years3
HWM Yearly Dividends per shareHWM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 12.02% of the earnings are spent on dividend by HWM. This is a low number and sustainable payout ratio.
  • HWM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.02%
EPS Next 2Y19.03%
EPS Next 3Y17.36%
HWM Yearly Income VS Free CF VS DividendHWM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B 1.5B
HWM Dividend Payout.HWM Dividend Payout, showing the Payout Ratio.HWM Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

HWM Fundamentals: All Metrics, Ratios and Statistics

HOWMET AEROSPACE INC

NYSE:HWM (3/4/2026, 12:37:09 PM)

259.09

+0.25 (+0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners94.77%
Inst Owner Change-0.72%
Ins Owners1.1%
Ins Owner Change0.03%
Market Cap104.17B
Revenue(TTM)8.25B
Net Income(TTM)1.51B
Analysts82.76
Price Target275.11 (6.18%)
Short Float %2.77%
Short Ratio4.21
Dividend
Industry RankSector Rank
Dividend Yield 0.18%
Yearly Dividend0.45
Dividend Growth(5Y)77.58%
DP12.02%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.73%
Min EPS beat(2)3.81%
Max EPS beat(2)7.66%
EPS beat(4)4
Avg EPS beat(4)6.05%
Min EPS beat(4)3.32%
Max EPS beat(4)9.41%
EPS beat(8)8
Avg EPS beat(8)6.61%
EPS beat(12)12
Avg EPS beat(12)6.94%
EPS beat(16)14
Avg EPS beat(16)5.78%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)0.98%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)1.26%
Revenue beat(8)5
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)1.67%
Revenue beat(16)12
Avg Revenue beat(16)1.35%
PT rev (1m)13.91%
PT rev (3m)18.92%
EPS NQ rev (1m)8.49%
EPS NQ rev (3m)8.9%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)2%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.61%
Valuation
Industry RankSector Rank
PE 68.72
Fwd PE 57.39
P/S 12.62
P/FCF 72.8
P/OCF 55.29
P/B 19.46
P/tB 119.19
EV/EBITDA 44.09
EPS(TTM)3.77
EY1.46%
EPS(NY)4.51
Fwd EY1.74%
FCF(TTM)3.56
FCFY1.37%
OCF(TTM)4.69
OCFY1.81%
SpS20.52
BVpS13.31
TBVpS2.17
PEG (NY)3.48
PEG (5Y)2.22
Graham Number33.61
Profitability
Industry RankSector Rank
ROA 13.47%
ROE 28.13%
ROCE 22.64%
ROIC 18.73%
ROICexc 20.34%
ROICexgc 42.09%
OM 25.81%
PM (TTM) 18.25%
GM 34.17%
FCFM 17.34%
ROA(3y)10.58%
ROA(5y)7.76%
ROE(3y)24.12%
ROE(5y)18.52%
ROIC(3y)15.24%
ROIC(5y)12.53%
ROICexc(3y)16.41%
ROICexc(5y)13.55%
ROICexgc(3y)35.34%
ROICexgc(5y)29.7%
ROCE(3y)18.42%
ROCE(5y)15.14%
ROICexgc growth 3Y21.62%
ROICexgc growth 5Y17.12%
ROICexc growth 3Y26.25%
ROICexc growth 5Y19.98%
OM growth 3Y14.45%
OM growth 5Y10.93%
PM growth 3Y30.32%
PM growth 5Y29.95%
GM growth 3Y7.45%
GM growth 5Y5.41%
F-Score8
Asset Turnover0.74
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.13
Debt/EBITDA 1.18
Cap/Depr 160.07%
Cap/Sales 5.49%
Interest Coverage 13.57
Cash Conversion 78.08%
Profit Quality 95.02%
Current Ratio 2.13
Quick Ratio 1.09
Altman-Z 12.81
F-Score8
WACC9.1%
ROIC/WACC2.06
Cap/Depr(3y)118.82%
Cap/Depr(5y)100.6%
Cap/Sales(3y)4.37%
Cap/Sales(5y)4.1%
Profit Quality(3y)89.71%
Profit Quality(5y)96.49%
High Growth Momentum
Growth
EPS 1Y (TTM)40.15%
EPS 3Y39.12%
EPS 5Y30.93%
EPS Q2Q%41.89%
EPS Next Y19.75%
EPS Next 2Y19.03%
EPS Next 3Y17.36%
EPS Next 5Y16.56%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y13.37%
Revenue growth 5Y9.43%
Sales Q2Q%14.65%
Revenue Next Year12.1%
Revenue Next 2Y11.66%
Revenue Next 3Y10.91%
Revenue Next 5Y9.96%
EBIT growth 1Y28.78%
EBIT growth 3Y29.76%
EBIT growth 5Y21.39%
EBIT Next Year34.34%
EBIT Next 3Y20.46%
EBIT Next 5Y15.49%
FCF growth 1Y46.47%
FCF growth 3Y38.38%
FCF growth 5YN/A
OCF growth 1Y45.15%
OCF growth 3Y36.98%
OCF growth 5Y191.18%

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 2 / 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 19.75% 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 12.02%.