HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HWM - US4432011082 - Common Stock
192.39 USD
+1.03 (+0.54%)
193 USD
+0.61 (+0.32%)
Taking everything into account, HWM scores 7 out of 10 in our fundamental rating. HWM was compared to 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 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.
In the past year HWM had a positive cash flow from operations.
HWM had positive earnings in each of the past 5 years.
HWM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HWM has a Return On Assets of 12.96%. This is amongst the best in the industry. HWM outperforms 97.22% of its industry peers.
With an excellent Return On Equity value of 28.15%, HWM belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
The Return On Invested Capital of HWM (16.94%) is better than 98.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HWM is above the industry average of 8.58%.
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
HWM's Profit Margin of 18.16% is amongst the best of the industry. HWM outperforms 97.22% of its industry peers.
HWM's Profit Margin has improved in the last couple of years.
HWM has a Operating Margin of 25.05%. This is amongst the best in the industry. HWM outperforms 98.61% of its industry peers.
In the last couple of years the Operating Margin of HWM has grown nicely.
With a decent Gross Margin value of 33.43%, HWM is doing good in the industry, outperforming 72.22% 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.
The number of shares outstanding for HWM has been reduced compared to 1 year ago.
Compared to 5 years ago, HWM has less shares outstanding
HWM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.66 indicates that HWM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.66, HWM belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
HWM has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as HWM would need 2.49 years to pay back of 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.
HWM has a Debt/Equity ratio of 0.62. This is a neutral value indicating HWM is somewhat dependend on debt financing.
HWM's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. HWM is outperformed by 68.06% 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 | 9.66 |
ROIC/WACC1.75
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.35 indicates that HWM has no problem at all paying its short term obligations.
HWM has a Current ratio of 2.35. This is comparable to the rest of the industry: HWM outperforms 50.00% 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.
The Quick ratio of HWM (1.14) is worse than 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.
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 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
HWM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.94% yearly.
HWM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.10% yearly.
EPS Next Y38.76%
EPS Next 2Y29.49%
EPS Next 3Y25.39%
EPS Next 5Y20.94%
Revenue Next Year10.65%
Revenue Next 2Y10.81%
Revenue Next 3Y10.6%
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
A Price/Earnings ratio of 55.60 indicates a quite expensive valuation of HWM.
HWM's Price/Earnings ratio is in line with the industry average.
HWM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 42.65, HWM can be considered very expensive at the moment.
HWM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HWM to the average of the S&P500 Index (23.80), we can say HWM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.6 | ||
| Fwd PE | 42.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HWM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HWM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.48 | ||
| EV/EBITDA | 34.84 |
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 25.39% in the coming years.
PEG (NY)1.43
PEG (5Y)11.4
EPS Next 2Y29.49%
EPS Next 3Y25.39%
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 1.12, HWM pays a bit more dividend than its industry peers.
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 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.
The dividend of HWM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.33%
EPS Next 2Y29.49%
EPS Next 3Y25.39%
192.39
+1.03 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change2.4%
Ins Owners1.1%
Ins Owner Change6.25%
Market Cap77.35B
Revenue(TTM)7.97B
Net Income(TTM)1.45B
Analysts81.38
Price Target232.01 (20.59%)
Short Float %2.47%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.27
Dividend Growth(5Y)16.52%
DP11.33%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)9.47%
PT rev (3m)14.59%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)1.14%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.6 | ||
| Fwd PE | 42.65 | ||
| P/S | 9.7 | ||
| P/FCF | 60.48 | ||
| P/OCF | 45.24 | ||
| P/B | 15.04 | ||
| P/tB | 124.16 | ||
| EV/EBITDA | 34.84 |
EPS(TTM)3.46
EY1.8%
EPS(NY)4.51
Fwd EY2.34%
FCF(TTM)3.18
FCFY1.65%
OCF(TTM)4.25
OCFY2.21%
SpS19.84
BVpS12.79
TBVpS1.55
PEG (NY)1.43
PEG (5Y)11.4
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 | 9.66 |
F-Score9
WACC9.7%
ROIC/WACC1.75
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 Y38.76%
EPS Next 2Y29.49%
EPS Next 3Y25.39%
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 2Y10.81%
Revenue Next 3Y10.6%
Revenue Next 5Y10.1%
EBIT growth 1Y28.9%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year46.95%
EBIT Next 3Y24.83%
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.
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 55.6 and the Price/Book (PB) ratio is 15.04.
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 38.76% in the next year.