(HWM) Howmet Aerospace - NYSE
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 105.868m USD | Total Return: 54.7% in 12m
Avg Turnover: 548M
EPS Trend: 99.6%
Qual. Beats: 5
Rev. Trend: 99.6%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader, Confidence
Howmet Aerospace Inc. is a global manufacturer of engineered metal components, serving the aerospace, defense, and commercial transportation sectors. The company operates through four primary segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. Its product portfolio includes critical components such as airfoils for jet engines, titanium mill products, and forged aluminum wheels for heavy-duty trucks.
The aerospace manufacturing sector relies on high barriers to entry due to stringent safety certifications and the capital-intensive nature of precision forging and casting. Howmet’s business model focuses on long-cycle platforms, often acting as a sole-source provider for complex components used in both commercial aviation and military defense programs. Investors may find additional insights on these competitive advantages by exploring the detailed data available on ValueRay.
Headquartered in Pittsburgh and founded in 1888, the firm transitioned from its former identity as Arconic Inc. to its current structure. It maintains a diverse international footprint with production and distribution facilities across North America, Europe, and Asia to support global original equipment manufacturers.
- Commercial aerospace engine build rates drive Engine Products segment revenue
- Narrowbody aircraft production ramps increase demand for aerospace fastening systems
- Defense spending growth supports titanium engineered structures and forgings volume
- Commercial transportation fleet upgrades accelerate forged aluminum wheel sales growth
| 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 (2.66b): 0.91 < 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: 15.30 > 6 (EBIT TTM 2.37b / 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: 0.20 (EBIT TTM 2.37b / Avg Total Assets 11.9b) |
| D: 0.73 (Book Value of Equity 5.52b / Total Liabilities 7.54b) |
| Altman-Z'' = 4.94 = AAA |
| 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 June 13, 2026, the stock is trading at USD 264.67 with a total of 1,302,289 shares traded.
Over the past week, the price has changed by +5.07%,
over one month by -1.89%,
over three months by +8.60% and
over the past year by +54.66%.
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 | 303.2 | 14.6% |
P/E Trailing = 61.3921
P/E Forward = 50.2513
P/S = 12.2775
P/B = 19.1721
P/EG = 0.8035
Revenue TTM = 8.62b USD
EBIT TTM = 2.37b USD
EBITDA TTM = 2.66b 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 = 108b USD (106b + Debt 4.85b - CCE 2.44b)
Interest Coverage Ratio = 15.30 (Ebit TTM 2.37b / Interest Expense TTM 155.0m)
EV/FCF = 75.46x (Enterprise Value 108b / FCF TTM 1.44b)
FCF Yield = 1.33% (FCF TTM 1.44b / Enterprise Value 108b)
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 = 8.29 (Enterprise Value 108b / Total Assets 13.1b)
Interest Expense / Debt = 3.20% (Interest Expense 155.0m / Debt 4.85b)
Taxrate = 17.03% (358.0m / 2.10b)
NOPAT = 1.97b (EBIT 2.37b * (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 = 0.91 (Net Debt 2.41b / EBITDA 2.66b)
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 = 25.45% (EBIT 2.37b / Capital Employed (Equity 5.26b + L.T.Debt 4.05b))
RoIC = 17.95% (NOPAT 1.97b / Invested Capital 11.0b)
WACC = 10.04% (E(106b)/V(111b) * Re(10.38%) + D(4.85b)/V(111b) * Rd(3.20%) * (1-Tc(0.17)))
Discount Rate = 10.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -1.18%
[DCF] Terminal Value 72.70% ; FCFF base≈1.27b ; Y1≈1.45b ; Y5≈2.14b
[DCF] Fair Price = 55.89 (EV 24.8b - Net Debt 2.41b = Equity 22.4b / Shares 400.1m; r=10.04% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.61 | EPS CAGR: 42.98% | SUE: 2.64 | # QB: 5
Revenue Correlation: 99.56 | Revenue CAGR: 11.79% | SUE: 2.17 | # QB: 4
EPS current Quarter (2026-06-30): EPS=1.24 | Chg30d=+6.75% | Revisions=+60% | Analysts=16
EPS next Quarter (2026-09-30): EPS=1.26 | Chg30d=+5.10% | Revisions=+60% | Analysts=16
EPS current Year (2026-12-31): EPS=5.04 | Chg30d=+8.08% | Revisions=+71% | GrowthEPS=+33.6% | GrowthRev=+18.0%
EPS next Year (2027-12-31): EPS=6.02 | Chg30d=+7.13% | Revisions=+71% | GrowthEPS=+19.4% | GrowthRev=+12.9%
[Analyst] Revisions Ratio: +71%