HOWMET AEROSPACE INC (HWM) Fundamental Analysis & Valuation

NYSE:HWM • US4432011082

Current stock price

227.9 USD
-2.61 (-1.13%)
At close:
226.97 USD
-0.93 (-0.41%)
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.
  • 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.
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

  • The Return On Assets of HWM (13.47%) is better than 97.47% 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 92.41% of the companies in the same industry.
  • HWM's Return On Invested Capital of 18.73% is amongst the best of the industry. HWM outperforms 97.47% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HWM is significantly above the industry average of 9.21%.
  • 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

  • HWM has a Profit Margin of 18.25%. This is amongst the best in the industry. HWM outperforms 92.41% of its industry peers.
  • HWM's Profit Margin has improved in the last couple of years.
  • HWM has a Operating Margin of 25.81%. This is amongst the best in the industry. HWM outperforms 92.41% of its industry peers.
  • In the last couple of years the Operating Margin of HWM has grown nicely.
  • The Gross Margin of HWM (34.17%) is better than 72.15% 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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8

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

  • HWM has an Altman-Z score of 11.51. This indicates that HWM is financially healthy and has little risk of bankruptcy at the moment.
  • HWM has a Altman-Z score of 11.51. This is amongst the best in the industry. HWM outperforms 88.61% 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 88.61% of the companies in the same industry.
  • 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 48.10% 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 11.51
ROIC/WACC1.91
WACC9.81%
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 in line with its industry, outperforming 41.77% 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.
  • With a Quick ratio value of 1.09, HWM is not doing good in the industry: 65.82% of the companies in the same industry are doing better.
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
  • The Revenue has grown by 11.06% in the past year. This is quite good.
  • 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.
  • The Revenue is expected to grow by 10.38% on average over the next years. This is quite good.
EPS Next Y23.26%
EPS Next 2Y21.26%
EPS Next 3Y19.34%
EPS Next 5Y16.59%
Revenue Next Year12.76%
Revenue Next 2Y12.41%
Revenue Next 3Y11.61%
Revenue Next 5Y10.38%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 2030 2 4 6 8

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2

4. HWM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 60.45, the valuation of HWM can be described as expensive.
  • HWM's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, HWM is valued quite expensively.
  • HWM is valuated quite expensively with a Price/Forward Earnings ratio of 49.04.
  • HWM's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, HWM is valued quite expensively.
Industry RankSector Rank
PE 60.45
Fwd PE 49.04
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 63.85
EV/EBITDA 38.82
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 HWM does not grow enough to justify the current Price/Earnings ratio.
  • 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)2.6
PEG (5Y)1.95
EPS Next 2Y21.26%
EPS Next 3Y19.34%

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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 0.21%, which is pretty low.
  • HWM's Dividend Yield is a higher than the industry average which is at 0.36.
  • Compared to an average S&P500 Dividend Yield of 1.89, HWM's dividend is way lower than the S&P500 average.
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 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 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

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HWM Fundamentals: All Metrics, Ratios and Statistics

HOWMET AEROSPACE INC

NYSE:HWM (3/27/2026, 8:24:05 PM)

After market: 226.97 -0.93 (-0.41%)

227.9

-2.61 (-1.13%)

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-0.37%
Ins Owners1.1%
Ins Owner Change0.03%
Market Cap91.37B
Revenue(TTM)8.25B
Net Income(TTM)1.51B
Analysts82.76
Price Target276.89 (21.5%)
Short Float %2.72%
Short Ratio3.99
Dividend
Industry RankSector Rank
Dividend Yield 0.21%
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)0.65%
PT rev (3m)18.64%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)8.9%
EPS NY rev (1m)2.93%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)1.56%
Valuation
Industry RankSector Rank
PE 60.45
Fwd PE 49.04
P/S 11.07
P/FCF 63.85
P/OCF 48.5
P/B 17.07
P/tB 104.55
EV/EBITDA 38.82
EPS(TTM)3.77
EY1.65%
EPS(NY)4.65
Fwd EY2.04%
FCF(TTM)3.57
FCFY1.57%
OCF(TTM)4.7
OCFY2.06%
SpS20.58
BVpS13.35
TBVpS2.18
PEG (NY)2.6
PEG (5Y)1.95
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 11.51
F-Score8
WACC9.81%
ROIC/WACC1.91
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 Year12.76%
Revenue Next 2Y12.41%
Revenue Next 3Y11.61%
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.


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%.