HWM Stock Analysis: Howmet Aerospace | NYSE
Aerospace & Defense | NYSE, USA | Market Cap: 114.867m USD | 12M Return: 53.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 625M
EPS Trend: 99.9%
Qual. Beats: 5
Rev. Trend: 99.6%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Seasonality 9.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Howmet Aerospace Inc. (NYSE: HWM) is a Pittsburgh-based manufacturer of advanced engineered components serving the aerospace and transportation industries across more than a dozen countries. The company is organized into four operating segments: Engine Products (airfoils, rolled rings, and rotating/structural parts for aircraft engines and industrial gas turbines), Fastening Systems (aerospace fasteners, latches, bearings, and installation tools), Engineered Structures (titanium ingots, aluminum and nickel forgings, and machined assemblies for airframes, engines, and landing gear), and Forged Wheels (aluminum wheels for heavy-duty trucks and commercial transport). Originally founded in 1888 and formerly known as Arconic Inc., Howmet operates as a tier-one supplier of specialty metal components rather than a prime airframe or engine assembler.
Within the Industrials sector, Howmet sits in the Aerospace & Defense sub-industry and primarily supplies mission-critical, hard-to-manufacture parts to original equipment manufacturers (OEMs) such as engine makers and airframe producers, giving it exposure to commercial aircraft production cycles as well as aftermarket engine parts demand. Its portfolio also extends beyond aerospace into commercial transportation through forged wheels and industrial fasteners, providing some diversification away from pure aerospace build rates.
- Boeing and Airbus delivery ramp fuels engine products revenue
- Defense titanium demand lifts Engineered Structures segment margins
- Heavy-duty truck downturn pressures Forged Wheels commercial revenue
| Net Income: 1.74b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.55 > 1.0 |
| NWC/Revenue: 38.76% < 20% (prev 26.58%; Δ 12.18% < -1%) |
| CFO/TA 0.16 > 3% & CFO 2.08b > Net Income 1.74b |
| Net Debt (2.41b) to EBITDA (2.54b): 0.95 < 3 |
| Current Ratio: 2.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (403.0m) vs 12m ago -0.98% < -2% |
| Gross Margin: 32.56% > 18% (prev 28.64%; Δ 3.92% > 0.5%) |
| Asset Turnover: 72.34% > 50% (prev 70.07%; Δ 2.27% > 0%) |
| Interest Coverage Ratio: 14.56 > 6 (EBIT TTM 2.26b / Interest Expense TTM 155.0m) |
| A: 0.26 (Total Current Assets 5.66b - Total Current Liabilities 2.31b) / Total Assets 13.1b |
| B: 0.35 (Retained Earnings 4.62b / Total Assets 13.1b) |
| C: 0.19 (EBIT TTM 2.26b / Avg Total Assets 11.9b) |
| D: 0.73 (Book Value of Equity 5.52b / Total Liabilities 7.54b) |
| Altman-Z'' = 4.87 = AA |
| DSRI: 0.91 (Receivables 940.0m/901.0m, Revenue 8.62b/7.55b) |
| GMI: 0.88 (GM 28.64% / 32.56%) |
| AQI: 0.83 (AQ_t 0.37 / AQ_t-1 0.44) |
| SGI: 1.14 (Revenue 8.62b / 7.55b) |
| TATA: -0.03 (NI 1.74b - CFO 2.08b) / TA 13.1b) |
| Beneish M = -3.21 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 287.94 with a total of 2,149,851 shares traded. Over the past week, the price has changed by +5.87%, over one month by +7.21%, over three months by +19.18% and over the past year by +53.37%.
Current recommended Stop Loss: 277.60 (which is 3.6% or 1.2 ATR below the current price).
Howmet Aerospace has received a consensus analysts rating of 4.40. Therefore, it is recommended to buy HWM.
- StrongBuy: 15
- Buy: 5
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 311.7 | 8.2% |
P/E Trailing = 64.9525
P/E Forward = 54.6448
P/S = 13.321
P/B = 20.3387
P/EG = 0.8035
Revenue TTM = 8.62b USD
EBIT TTM = 2.26b USD
EBITDA TTM = 2.54b USD
Long Term Debt = 4.05b USD (from longTermDebt, last quarter)
Short Term Debt = 636.0m USD (from shortTermDebt, last quarter)
Debt = 4.85b USD (from shortLongTermDebtTotal, last quarter) + Leases 163.0m
Net Debt = 2.41b USD (calculated: Debt 4.85b - CCE 2.44b)
Enterprise Value = 117b USD (115b + Debt 4.85b - CCE 2.44b)
Interest Coverage Ratio = 14.56 (Ebit TTM 2.26b / Interest Expense TTM 155.0m)
EV/FCF = 81.73x (Enterprise Value 117b / FCF TTM 1.44b)
FCF Yield = 1.22% (FCF TTM 1.44b / Enterprise Value 117b)
FCF Margin = 16.64% (FCF TTM 1.44b / Revenue TTM 8.62b)
Net Margin = 20.22% (Net Income TTM 1.74b / Revenue TTM 8.62b)
Gross Margin = 32.56% ((Revenue TTM 8.62b - Cost of Revenue TTM 5.82b) / Revenue TTM)
Gross Margin QoQ = 36.92% (prev 31.50%)
Tobins Q-Ratio = 8.98 (Enterprise Value 117b / Total Assets 13.1b)
Interest Expense / Debt = 3.20% (Interest Expense 155.0m / Debt 4.85b)
Taxrate = 17.03% (358.0m / 2.10b)
NOPAT = 1.87b (EBIT 2.26b * (1 - 17.03%))
Current Ratio = 2.44 (Total Current Assets 5.66b / Total Current Liabilities 2.31b)
Debt / Equity = 0.88 (Debt 4.85b / totalStockholderEquity, last quarter 5.52b)
Debt / EBITDA = 0.95 (Net Debt 2.41b / EBITDA 2.54b)
Debt / FCF = 1.68 (Net Debt 2.41b / FCF TTM 1.44b)
Total Stockholder Equity = 5.26b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.63% (Net Income 1.74b / Total Assets 13.1b)
RoE = 33.12% (Net Income TTM 1.74b / Total Stockholder Equity 5.26b)
RoCE = 24.23% (EBIT 2.26b / Capital Employed (Equity 5.26b + L.T.Debt 4.05b))
RoIC = 17.09% (NOPAT 1.87b / Invested Capital 11.0b)
WACC = 10.00% (E(115b)/V(120b) * Re(10.31%) + D(4.85b)/V(120b) * Rd(3.20%) * (1-Tc(0.17)))
Discount Rate = 10.31% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.31 | Cagr: -1.18%
[DCF] Terminal Value 72.82% ; FCFF base≈1.27b ; Y1≈1.45b ; Y5≈2.14b
[DCF] Fair Price = 56.24 (EV 24.9b - Net Debt 2.41b = Equity 22.5b / Shares 400.1m; r=10.00% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.90 | EPS CAGR: 42.48% | SUE: 4.0 | # QB: 5
Revenue Correlation: 99.56 | Revenue CAGR: 11.79% | SUE: 2.17 | # QB: 4
EPS current Quarter (2026-06-30): EPS=1.25 | Chg30d=+0.21% | Revisions=+0% | Analysts=16
EPS next Quarter (2026-09-30): EPS=1.26 | Chg30d=-0.16% | Revisions=+0% | Analysts=16
EPS current Year (2026-12-31): EPS=5.06 | Chg30d=+0.52% | Revisions=+40% | GrowthEPS=+34.3% | GrowthRev=+18.2%
EPS next Year (2027-12-31): EPS=6.05 | Chg30d=+0.60% | Revisions=+0% | GrowthEPS=+19.5% | GrowthRev=+13.1%
[Analyst] Revisions Ratio: +18% (up=5, down=3)