HOWMET AEROSPACE INC (HWM) Fundamental Analysis & Valuation

NYSE:HWM • US4432011082

Current stock price

236.02 USD
-0.55 (-0.23%)
At close:
236.02 USD
0 (0%)
After Hours:

This HWM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. HWM Profitability Analysis

1.1 Basic Checks

  • In the past year HWM was profitable.
  • HWM had a positive operating cash flow in the past year.
  • In the past 5 years HWM has always been profitable.
  • In the past 5 years HWM always reported a positive cash flow from operatings.
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

  • HWM has a better Return On Assets (13.47%) than 96.25% of its industry peers.
  • HWM has a Return On Equity of 28.13%. This is amongst the best in the industry. HWM outperforms 92.50% of its industry peers.
  • HWM has a Return On Invested Capital of 18.73%. This is amongst the best in the industry. HWM outperforms 97.50% of its industry peers.
  • HWM had an Average Return On Invested Capital over the past 3 years of 15.24%. This is significantly above the industry average of 9.21%.
  • The 3 year average ROIC (15.24%) for HWM is below the current ROIC(18.73%), indicating increased profibility in the last year.
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 92.50% of the companies in the same industry.
  • HWM's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 25.81%, HWM belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HWM has grown nicely.
  • HWM has a better Gross Margin (34.17%) than 72.50% of its industry peers.
  • In the last couple of years the Gross Margin of HWM has grown nicely.
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

8

2. HWM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HWM is creating 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
  • 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

  • An Altman-Z score of 11.86 indicates that HWM is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of HWM (11.86) is better than 88.75% of its industry peers.
  • The Debt to FCF ratio of HWM is 2.13, which is a good value as it means it would take HWM, 2.13 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.13, HWM belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
  • HWM has a Debt/Equity ratio of 0.53. This is a neutral value indicating HWM is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.53, HWM is in line with its industry, outperforming 48.75% of the companies in the same industry.
  • Although HWM's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 11.86
ROIC/WACC1.93
WACC9.7%
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

  • A Current Ratio of 2.13 indicates that HWM has no problem at all paying its short term obligations.
  • The Current ratio of HWM (2.13) is comparable to the rest of the industry.
  • 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.
  • HWM has a worse Quick ratio (1.09) than 67.50% of its industry peers.
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.
  • The Earnings Per Share has been growing by 30.93% on average over the past years. This is a very strong growth
  • Looking at the last year, HWM shows a quite strong growth in Revenue. The Revenue has grown by 11.06% in the last year.
  • Measured over the past years, HWM shows a quite strong growth in Revenue. The Revenue has been growing by 9.43% on average per year.
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

  • Based on estimates for the next years, HWM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.59% on average per year.
  • HWM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.38% yearly.
EPS Next Y23.26%
EPS Next 2Y21.26%
EPS Next 3Y19.34%
EPS Next 5Y16.59%
Revenue Next Year13.02%
Revenue Next 2Y12.56%
Revenue Next 3Y11.71%
Revenue Next 5Y10.38%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 2030 2 4 6 8

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2

4. HWM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 62.60, which means the current valuation is very expensive for HWM.
  • The rest of the industry has a similar Price/Earnings ratio as HWM.
  • The average S&P500 Price/Earnings ratio is at 26.21. HWM is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 50.79, which means the current valuation is very expensive for HWM.
  • 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 23.10, HWM is valued quite expensively.
Industry RankSector Rank
PE 62.6
Fwd PE 50.79
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as HWM.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as HWM.
Industry RankSector Rank
P/FCF 66.13
EV/EBITDA 40.26
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.
  • HWM has an outstanding profitability rating, which may justify a higher PE ratio.
  • HWM's earnings are expected to grow with 19.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)2.02
EPS Next 2Y21.26%
EPS Next 3Y19.34%

More info and screens

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 0.21%, which is pretty low.
  • HWM's Dividend Yield is a higher than the industry average which is at 0.36.
  • With a Dividend Yield of 0.21, HWM pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.21%

5.2 History

  • The dividend of HWM is nicely growing with an annual growth rate of 77.58%!
  • 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)77.58%
Div Incr Years4
Div Non Decr Years4
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 2Y21.26%
EPS Next 3Y19.34%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

HWM Fundamentals: All Metrics, Ratios and Statistics

HOWMET AEROSPACE INC

NYSE:HWM (4/7/2026, 5:45:17 PM)

After market: 236.02 0 (0%)

236.02

-0.55 (-0.23%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-12
Earnings (Next)04-30
Inst Owners93.72%
Inst Owner Change0%
Ins Owners1.1%
Ins Owner Change0.02%
Market Cap94.63B
Revenue(TTM)8.25B
Net Income(TTM)1.51B
Analysts82.76
Price Target276.89 (17.32%)
Short Float %2.74%
Short Ratio3.96
Dividend
Industry RankSector Rank
Dividend Yield 0.21%
Yearly Dividend0.45
Dividend Growth(5Y)77.58%
DP12.02%
Div Incr Years4
Div Non Decr Years4
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)0.65%
PT rev (3m)18.64%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)9.01%
EPS NY rev (1m)0%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 62.6
Fwd PE 50.79
P/S 11.47
P/FCF 66.13
P/OCF 50.23
P/B 17.68
P/tB 108.27
EV/EBITDA 40.26
EPS(TTM)3.77
EY1.6%
EPS(NY)4.65
Fwd EY1.97%
FCF(TTM)3.57
FCFY1.51%
OCF(TTM)4.7
OCFY1.99%
SpS20.58
BVpS13.35
TBVpS2.18
PEG (NY)2.69
PEG (5Y)2.02
Graham Number33.65
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 11.86
F-Score8
WACC9.7%
ROIC/WACC1.93
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 Y23.26%
EPS Next 2Y21.26%
EPS Next 3Y19.34%
EPS Next 5Y16.59%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y13.37%
Revenue growth 5Y9.43%
Sales Q2Q%14.65%
Revenue Next Year13.02%
Revenue Next 2Y12.56%
Revenue Next 3Y11.71%
Revenue Next 5Y10.38%
EBIT growth 1Y28.78%
EBIT growth 3Y29.76%
EBIT growth 5Y21.39%
EBIT Next Year34.34%
EBIT Next 3Y20.46%
EBIT Next 5Y16.21%
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 Fundamental Analysis 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 of HOWMET AEROSPACE INC (HWM) stock?

ChartMill assigns a valuation rating of 2 / 10 to HOWMET AEROSPACE INC (HWM). This can be considered as Overvalued.


What is the profitability of HWM stock?

HOWMET AEROSPACE INC (HWM) has a profitability rating of 9 / 10.


What is the valuation of HOWMET AEROSPACE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for HOWMET AEROSPACE INC (HWM) is 62.6 and the Price/Book (PB) ratio is 17.68.


Can you provide the financial health for HWM stock?

The financial health rating of HOWMET AEROSPACE INC (HWM) is 8 / 10.