HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HWM - US4432011082 - Common Stock
211.22 USD
-0.95 (-0.45%)
211.22 USD
0 (0%)
Taking everything into account, HWM scores 7 out of 10 in our fundamental rating. HWM was compared to 71 industry peers in the Aerospace & Defense industry. HWM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HWM is valued quite expensive, but it does show an excellent growth. This makes HWM very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
HWM had positive earnings in the past year.
HWM had a positive operating cash flow in the past year.
Each year in the past 5 years HWM has been profitable.
In the past 5 years HWM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HWM (12.96%) is better than 97.18% of its industry peers.
HWM has a better Return On Equity (28.15%) than 97.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.94%, HWM belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HWM is above the industry average of 8.60%.
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 97.18% of its industry peers.
In the last couple of years the Profit Margin of HWM has grown nicely.
Looking at the Operating Margin, with a value of 25.05%, HWM belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
In the last couple of years the Operating Margin of HWM has grown nicely.
HWM has a Gross Margin of 33.43%. This is in the better half of the industry: HWM outperforms 71.83% of its industry peers.
HWM's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for HWM has been reduced compared to 5 years ago.
Compared to 1 year ago, HWM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.45 indicates that HWM is not in any danger for bankruptcy at the moment.
HWM's Altman-Z score of 10.45 is amongst the best of the industry. HWM outperforms 83.10% 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 has a better Debt to FCF ratio (2.49) than 90.14% 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.
Looking at the Debt to Equity ratio, with a value of 0.62, HWM is doing worse than 69.01% of the companies in the same industry.
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 | 10.45 |
ROIC/WACC1.76
WACC9.64%
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.
With a Current ratio value of 2.35, HWM perfoms like the industry average, outperforming 46.48% 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.
HWM has a Quick ratio of 1.14. This is in the lower half of the industry: HWM underperforms 69.01% 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.
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
Based on estimates for the next years, HWM will show a very strong growth in Earnings Per Share. The EPS will grow by 20.94% on average per year.
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 Y38.71%
EPS Next 2Y29.46%
EPS Next 3Y25.49%
EPS Next 5Y20.94%
Revenue Next Year10.61%
Revenue Next 2Y10.84%
Revenue Next 3Y10.68%
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 61.05 indicates a quite expensive valuation of HWM.
The rest of the industry has a similar Price/Earnings ratio as HWM.
The average S&P500 Price/Earnings ratio is at 26.92. HWM is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.85 indicates a quite expensive valuation of HWM.
HWM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.46. HWM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.05 | ||
| Fwd PE | 46.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HWM is on the same level as its industry peers.
HWM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.4 | ||
| EV/EBITDA | 38.34 |
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 25.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)12.52
EPS Next 2Y29.46%
EPS Next 3Y25.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, HWM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.39, HWM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.23, HWM pays less dividend than the S&P500 average, which is at 2.00.
| 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
11.33% of the earnings are spent on dividend by HWM. This is a low number and sustainable payout ratio.
The dividend of HWM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.33%
EPS Next 2Y29.46%
EPS Next 3Y25.49%
211.22
-0.95 (-0.45%)
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 Cap84.92B
Revenue(TTM)7.97B
Net Income(TTM)1.45B
Analysts81.38
Price Target233.4 (10.5%)
Short Float %2.64%
Short Ratio5.05
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-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)0.89%
PT rev (3m)14.26%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)1.11%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.05 | ||
| Fwd PE | 46.85 | ||
| P/S | 10.65 | ||
| P/FCF | 66.4 | ||
| P/OCF | 49.66 | ||
| P/B | 16.51 | ||
| P/tB | 136.31 | ||
| EV/EBITDA | 38.34 |
EPS(TTM)3.46
EY1.64%
EPS(NY)4.51
Fwd EY2.13%
FCF(TTM)3.18
FCFY1.51%
OCF(TTM)4.25
OCFY2.01%
SpS19.84
BVpS12.79
TBVpS1.55
PEG (NY)1.58
PEG (5Y)12.52
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 | 10.45 |
F-Score9
WACC9.64%
ROIC/WACC1.76
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 Year10.61%
Revenue Next 2Y10.84%
Revenue Next 3Y10.68%
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.
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 61.05 and the Price/Book (PB) ratio is 16.51.
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 38.71% in the next year.