HOWMET AEROSPACE INC (HWM) Stock Fundamental Analysis
USA - NYSE:HWM - US4432011082 - Common Stock
191.08 USD
-3.77 (-1.93%)
191.08 USD
0 (0%)
HWM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. HWM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HWM is valued quite expensive, but it does show an excellent growth. These ratings could make HWM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year HWM was profitable.
In the past year HWM had a positive cash flow from operations.
HWM had positive earnings in each of the past 5 years.
In the past 5 years HWM always reported a positive cash flow from operatings.
1.2 Ratios
HWM has a Return On Assets of 12.63%. This is amongst the best in the industry. HWM outperforms 95.65% of its industry peers.
HWM has a Return On Equity of 27.67%. This is amongst the best in the industry. HWM outperforms 97.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.08%, HWM belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
HWM had an Average Return On Invested Capital over the past 3 years of 11.81%. This is above the industry average of 8.29%.
The 3 year average ROIC (11.81%) for HWM is below the current ROIC(16.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.63% | ||
| ROE | 27.67% | ||
| ROIC | 16.08% |
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
Looking at the Profit Margin, with a value of 18.07%, HWM belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
HWM's Profit Margin has improved in the last couple of years.
HWM has a Operating Margin of 24.30%. This is amongst the best in the industry. HWM outperforms 98.55% of its industry peers.
In the last couple of years the Operating Margin of HWM has grown nicely.
Looking at the Gross Margin, with a value of 32.69%, HWM is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
In the last couple of years the Gross Margin of HWM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 18.07% | ||
| GM | 32.69% |
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
HWM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HWM has less shares outstanding than it did 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.
2.2 Solvency
HWM has an Altman-Z score of 9.77. This indicates that HWM is financially healthy and has little risk of bankruptcy at the moment.
HWM's Altman-Z score of 9.77 is amongst the best of the industry. HWM outperforms 82.61% of its industry peers.
HWM has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as HWM would need 3.20 years to pay back of all of its debts.
HWM's Debt to FCF ratio of 3.20 is amongst the best of the industry. HWM outperforms 85.51% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that HWM is somewhat dependend on debt financing.
HWM has a worse Debt to Equity ratio (0.65) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 9.77 |
ROIC/WACC1.66
WACC9.71%
2.3 Liquidity
HWM has a Current Ratio of 2.31. This indicates that HWM is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.31, HWM perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that HWM should not have too much problems paying its short term obligations.
HWM's Quick ratio of 1.08 is on the low side compared to the rest of the industry. HWM is outperformed by 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
HWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.39%, which is quite impressive.
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.
The Revenue has grown by 8.85% in the past year. This is quite good.
HWM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
EPS 1Y (TTM)44.39%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%35.82%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%9.2%
3.2 Future
The Earnings Per Share is expected to grow by 20.95% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.94% on average over the next years. This is quite good.
EPS Next Y36.18%
EPS Next 2Y27.48%
EPS Next 3Y23.94%
EPS Next 5Y20.95%
Revenue Next Year9.96%
Revenue Next 2Y10.43%
Revenue Next 3Y10.33%
Revenue Next 5Y9.94%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 59.34 indicates a quite expensive valuation of HWM.
The rest of the industry has a similar Price/Earnings ratio as HWM.
Compared to an average S&P500 Price/Earnings ratio of 27.79, HWM is valued quite expensively.
HWM is valuated quite expensively with a Price/Forward Earnings ratio of 43.71.
The rest of the industry has a similar Price/Forward Earnings ratio as HWM.
HWM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.34 | ||
| Fwd PE | 43.71 |
4.2 Price Multiples
HWM's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.67 | ||
| EV/EBITDA | 37.71 |
4.3 Compensation for Growth
HWM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HWM may justify a higher PE ratio.
A more expensive valuation may be justified as HWM's earnings are expected to grow with 23.94% in the coming years.
PEG (NY)1.64
PEG (5Y)12.17
EPS Next 2Y27.48%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.25%, HWM is not a good candidate for dividend investing.
HWM's Dividend Yield is a higher than the industry average which is at 1.45.
Compared to an average S&P500 Dividend Yield of 2.41, HWM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
The dividend of HWM is nicely growing with an annual growth rate of 16.52%!
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)16.52%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HWM pays out 10.75% of its income as dividend. This is a sustainable payout ratio.
HWM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.75%
EPS Next 2Y27.48%
EPS Next 3Y23.94%
191.08
-3.77 (-1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners95.94%
Inst Owner Change-2.41%
Ins Owners1.11%
Ins Owner Change2.85%
Market Cap77.03B
Analysts80.67
Price Target204.26 (6.9%)
Short Float %2.78%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.27
Dividend Growth(5Y)16.52%
DP10.75%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.37%
Min EPS beat(2)3.32%
Max EPS beat(2)9.41%
EPS beat(4)4
Avg EPS beat(4)5.54%
Min EPS beat(4)2.1%
Max EPS beat(4)9.41%
EPS beat(8)8
Avg EPS beat(8)7.53%
EPS beat(12)10
Avg EPS beat(12)5.88%
EPS beat(16)14
Avg EPS beat(16)5.61%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)1.23%
Revenue beat(8)5
Avg Revenue beat(8)1.23%
Revenue beat(12)8
Avg Revenue beat(12)1.51%
Revenue beat(16)10
Avg Revenue beat(16)0.87%
PT rev (1m)0.89%
PT rev (3m)15.49%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)3.91%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.34 | ||
| Fwd PE | 43.71 | ||
| P/S | 9.98 | ||
| P/FCF | 75.67 | ||
| P/OCF | 54.13 | ||
| P/B | 15.28 | ||
| P/tB | 151.04 | ||
| EV/EBITDA | 37.71 |
EPS(TTM)3.22
EY1.69%
EPS(NY)4.37
Fwd EY2.29%
FCF(TTM)2.53
FCFY1.32%
OCF(TTM)3.53
OCFY1.85%
SpS19.15
BVpS12.51
TBVpS1.27
PEG (NY)1.64
PEG (5Y)12.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.63% | ||
| ROE | 27.67% | ||
| ROCE | 19.86% | ||
| ROIC | 16.08% | ||
| ROICexc | 17.07% | ||
| ROICexgc | 34.78% | ||
| OM | 24.3% | ||
| PM (TTM) | 18.07% | ||
| GM | 32.69% | ||
| FCFM | 13.18% |
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%
ROICexcg growth 3Y22.26%
ROICexcg 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-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 145.16% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.03% | ||
| Profit Quality | 72.97% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 9.77 |
F-Score8
WACC9.71%
ROIC/WACC1.66
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)44.39%
EPS 3Y38.62%
EPS 5Y4.88%
EPS Q2Q%35.82%
EPS Next Y36.18%
EPS Next 2Y27.48%
EPS Next 3Y23.94%
EPS Next 5Y20.95%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y14.33%
Revenue growth 5Y0.92%
Sales Q2Q%9.2%
Revenue Next Year9.96%
Revenue Next 2Y10.43%
Revenue Next 3Y10.33%
Revenue Next 5Y9.94%
EBIT growth 1Y30.19%
EBIT growth 3Y25.44%
EBIT growth 5Y7.15%
EBIT Next Year44.51%
EBIT Next 3Y23.66%
EBIT Next 5Y17.33%
FCF growth 1Y75.52%
FCF growth 3Y57.51%
FCF growth 5YN/A
OCF growth 1Y84.33%
OCF growth 3Y42.45%
OCF growth 5Y23%