HOWMET AEROSPACE INC (HWM) Fundamental Analysis & Valuation

NYSE:HWM • US4432011082

245.47 USD
-4.66 (-1.86%)
Last: Mar 9, 2026, 10:27 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

7

Taking everything into account, HWM scores 7 out of 10 in our fundamental rating. HWM was compared to 78 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!


Dividend Valuation Growth Profitability Health

9

1. HWM Profitability Analysis

1.1 Basic Checks

  • In the past year HWM was profitable.
  • In the past year HWM had a positive cash flow from operations.
  • Each year in the past 5 years HWM has been profitable.
  • Each year in the past 5 years HWM had a positive operating cash flow.
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's Return On Assets of 13.47% is amongst the best of the industry. HWM outperforms 97.44% of its industry peers.
  • Looking at the Return On Equity, with a value of 28.13%, HWM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
  • HWM has a Return On Invested Capital of 18.73%. This is amongst the best in the industry. HWM outperforms 97.44% 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 9.32%.
  • 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

  • Looking at the Profit Margin, with a value of 18.25%, HWM belongs to the top 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 92.31% 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 71.79% 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. HWM Health Analysis

2.1 Basic Checks

  • HWM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
  • HWM has a better debt/assets ratio than last year.
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 12.42 indicates that HWM is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of HWM (12.42) is better than 89.74% of its industry peers.
  • 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.
  • With an excellent Debt to FCF ratio value of 2.13, HWM belongs to the best of the industry, outperforming 89.74% 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.
  • HWM's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. HWM outperforms 46.15% of its industry peers.
  • 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 12.42
ROIC/WACC1.9
WACC9.88%
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.
  • Looking at the Current ratio, with a value of 2.13, HWM is doing worse than 61.54% of the companies in the same 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 Quick ratio of 1.09. This is in the lower half of the industry: HWM underperforms 66.67% of its industry peers.
  • HWM does not score too well on the current and quick ratio evaluation. However, as it has 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

More info and screens

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

7

3. HWM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 40.15% over the past year.
  • The Earnings Per Share has been growing by 30.93% on average over the past years. This is a very strong growth
  • HWM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.06%.
  • HWM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.43% yearly.
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 Year12.83%
Revenue Next 2Y12.46%
Revenue Next 3Y11.51%
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

More info and screens

Find the best growth stocksShow best growing peers

2

4. HWM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 65.11 indicates a quite expensive valuation of HWM.
  • Compared to the rest of the industry, the Price/Earnings ratio of HWM is on the same level as its industry peers.
  • HWM is valuated expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 52.82, HWM can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HWM is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of HWM to the average of the S&P500 Index (24.60), we can say HWM is valued expensively.
Industry RankSector Rank
PE 65.11
Fwd PE 52.82
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.
  • HWM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 68.78
EV/EBITDA 42.52
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.
  • HWM's earnings are expected to grow with 19.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.8
PEG (5Y)2.11
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 0.19%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.34, HWM pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, HWM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.19%

5.2 History

  • On average, the dividend of HWM grows each year by 77.58%, which is quite nice.
  • 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 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

  • HWM pays out 12.02% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of HWM is growing, but the earnings are growing slower. 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 (3/9/2026, 10:27:08 AM)

245.47

-4.66 (-1.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners93.72%
Inst Owner Change-0.74%
Ins Owners1.1%
Ins Owner Change0.03%
Market Cap98.42B
Revenue(TTM)8.25B
Net Income(TTM)1.51B
Analysts82.76
Price Target275.11 (12.07%)
Short Float %2.77%
Short Ratio4.21
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
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)12%
PT rev (3m)18.57%
EPS NQ rev (1m)8.49%
EPS NQ rev (3m)8.85%
EPS NY rev (1m)2.93%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)1.2%
Revenue NY rev (3m)1.68%
Valuation
Industry RankSector Rank
PE 65.11
Fwd PE 52.82
P/S 11.93
P/FCF 68.78
P/OCF 52.24
P/B 18.39
P/tB 112.61
EV/EBITDA 42.52
EPS(TTM)3.77
EY1.54%
EPS(NY)4.65
Fwd EY1.89%
FCF(TTM)3.57
FCFY1.45%
OCF(TTM)4.7
OCFY1.91%
SpS20.58
BVpS13.35
TBVpS2.18
PEG (NY)2.8
PEG (5Y)2.11
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 12.42
F-Score8
WACC9.88%
ROIC/WACC1.9
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 Year12.83%
Revenue Next 2Y12.46%
Revenue Next 3Y11.51%
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 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 23.26% 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%.