HOWMET AEROSPACE INC (HWM) Fundamental Analysis & Valuation

NYSE:HWM • US4432011082

Current stock price

243.27 USD
+6.75 (+2.85%)
Last:

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.
  • In the past year HWM had a positive cash flow from operations.
  • In the past 5 years HWM has always been profitable.
  • 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

  • Looking at the Return On Assets, with a value of 13.47%, HWM belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
  • The Return On Equity of HWM (28.13%) is better than 92.50% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 18.73%, HWM belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HWM is significantly above the industry average of 9.41%.
  • 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 93.75% of the companies in the same industry.
  • HWM's Profit Margin has improved in the last couple of years.
  • HWM's Operating Margin of 25.81% is amongst the best of the industry. HWM outperforms 93.75% of its industry peers.
  • In the last couple of years the Operating Margin of HWM has grown nicely.
  • HWM has a Gross Margin of 34.17%. This is in the better half of the industry: HWM outperforms 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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8

2. HWM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HWM is creating value.
  • HWM has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, HWM has less shares outstanding
  • Compared to 1 year ago, HWM has an improved debt to assets ratio.
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 90.00% 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.
  • Looking at the Debt to FCF ratio, with a value of 2.13, HWM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.53 indicates that HWM is somewhat dependend on debt financing.
  • HWM has a Debt to Equity ratio (0.53) which is in line with 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 11.86
ROIC/WACC1.88
WACC9.96%
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

  • HWM has a Current Ratio of 2.13. This indicates that HWM is financially healthy and has no problem in meeting its short term obligations.
  • HWM has a Current ratio (2.13) which is in line with its industry peers.
  • 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: 71.25% 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

  • The Earnings Per Share has grown by an impressive 40.15% over the past year.
  • Measured over the past years, HWM shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.93% on average per year.
  • Looking at the last year, HWM shows a quite strong growth in Revenue. The Revenue has grown by 11.06% in the last year.
  • The Revenue has been growing by 9.43% on average over the past years. This is quite good.
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 13.88% 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 9.00% on average per year.
EPS Next Y23.48%
EPS Next 2Y21.32%
EPS Next 3Y19.76%
EPS Next 5Y13.88%
Revenue Next Year14.05%
Revenue Next 2Y13.19%
Revenue Next 3Y12.14%
Revenue Next 5Y9%

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

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2

4. HWM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 64.53, 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 26.54, HWM is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 52.26, the valuation of HWM can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HWM.
  • HWM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.68.
Industry RankSector Rank
PE 64.53
Fwd PE 52.26
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.
  • 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 RankSector Rank
P/FCF 68.12
EV/EBITDA 40.23
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 19.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.75
PEG (5Y)2.09
EPS Next 2Y21.32%
EPS Next 3Y19.76%

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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 0.19%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.38, HWM pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.19, HWM pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.19%

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.
  • The dividend of HWM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.02%
EPS Next 2Y21.32%
EPS Next 3Y19.76%
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 (4/30/2026, 3:58:01 PM)

243.27

+6.75 (+2.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Industry Strength70.81
Industry Growth88.2
Earnings (Last)02-12
Earnings (Next)05-07
Inst Owners93.73%
Inst Owner Change-0.16%
Ins Owners1.1%
Ins Owner Change0.12%
Market Cap97.48B
Revenue(TTM)8.25B
Net Income(TTM)1.51B
Analysts82.76
Price Target281.9 (15.88%)
Short Float %2.36%
Short Ratio4.08
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
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)2.47%
PT rev (3m)16.72%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)8.81%
EPS NY rev (1m)0.18%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)3.66%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)2.29%
Valuation
Industry RankSector Rank
PE 64.53
Fwd PE 52.26
P/S 11.81
P/FCF 68.12
P/OCF 51.74
P/B 18.21
P/tB 111.53
EV/EBITDA 40.23
EPS(TTM)3.77
EY1.55%
EPS(NY)4.66
Fwd EY1.91%
FCF(TTM)3.57
FCFY1.47%
OCF(TTM)4.7
OCFY1.93%
SpS20.59
BVpS13.36
TBVpS2.18
PEG (NY)2.75
PEG (5Y)2.09
Graham Number33.6624 (-86.16%)
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
WACC9.96%
ROIC/WACC1.88
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 Y23.48%
EPS Next 2Y21.32%
EPS Next 3Y19.76%
EPS Next 5Y13.88%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y13.37%
Revenue growth 5Y9.43%
Sales Q2Q%14.65%
Revenue Next Year14.05%
Revenue Next 2Y13.19%
Revenue Next 3Y12.14%
Revenue Next 5Y9%
EBIT growth 1Y28.78%
EBIT growth 3Y29.76%
EBIT growth 5Y21.39%
EBIT Next Year34.76%
EBIT Next 3Y20.59%
EBIT Next 5Y14.98%
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 64.53 and the Price/Book (PB) ratio is 18.21.


Can you provide the financial health for HWM stock?

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