(HWM) Howmet Aerospace - Ratings and Ratios
Engine Parts, Fasteners, Aircraft Structures, Wheels
HWM EPS (Earnings per Share)
HWM Revenue
Description: HWM Howmet Aerospace
Howmet Aerospace Inc. (NYSE:HWM) is a leading provider of advanced engineered solutions for the aerospace and transportation industries globally, operating through four key segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The companys diverse product portfolio includes airfoils, fastening systems, titanium ingots, and forged aluminum wheels, catering to a wide range of applications in aircraft engines, industrial gas turbines, and commercial transportation.
To evaluate the companys performance, key performance indicators (KPIs) such as revenue growth, operating margin, and return on equity (ROE) are crucial. With a ROE of 27.72%, Howmet Aerospace demonstrates a strong ability to generate profits from shareholder equity. Additionally, the companys presence in the aerospace and defense industry, a sector known for its high barriers to entry and stable demand, positions it for long-term growth.
Analyzing the companys segments, Engine Products and Engineered Structures are likely to be significant contributors to revenue, given the growing demand for aircraft engines and aerospace structures. The Fastening Systems segment also presents opportunities, driven by the need for high-quality fastening systems in the aerospace industry. Meanwhile, the Forged Wheels segment serves the commercial transportation market, providing a diversified revenue stream.
From a valuation perspective, Howmet Aerospaces price-to-earnings (P/E) ratio of 58.15 and forward P/E of 51.02 indicate a premium valuation, potentially reflecting the companys strong growth prospects and industry position. To assess the stocks potential, monitoring its support and resistance levels, such as the support at $181.2, $176.3, and $168.7, is essential. A break below these levels could signal a downward trend, while a sustained price above these levels may indicate continued growth.
HWM Stock Overview
| Market Cap in USD | 73,393m |
| Sector | Industrials |
| Industry | Aerospace & Defense |
| GiC Sub-Industry | Aerospace & Defense |
| IPO / Inception | 1962-01-02 |
HWM Stock Ratings
| Growth Rating | 94.0 |
| Fundamental | 83.2% |
| Dividend Rating | 58.5 |
| Rel. Strength | 30.3 |
| Analysts | 4.40 of 5 |
| Fair Price Momentum | 261.10 USD |
| Fair Price DCF | 58.73 USD |
HWM Dividends
| Dividend Yield 12m | 0.26% |
| Yield on Cost 5y | 2.32% |
| Annual Growth 5y | 76.92% |
| Payout Consistency | 85.9% |
| Payout Ratio | 12.4% |
HWM Growth Ratios
| Growth Correlation 3m | 86.3% |
| Growth Correlation 12m | 96.1% |
| Growth Correlation 5y | 97.7% |
| CAGR 5y | 59.93% |
| CAGR/Max DD 5y | 2.58 |
| Sharpe Ratio 12m | 2.48 |
| Alpha | 65.75 |
| Beta | 1.429 |
| Volatility | 40.00% |
| Current Volume | 1256.1k |
| Average Volume 20d | 2313.7k |
| Stop Loss | 174.9 (-3.3%) |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (1.40b TTM) > 0 and > 6% of Revenue (6% = 463.3m TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA 0.11pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 27.12% (prev 17.55%; Δ 9.57pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.13 (>3.0%) and CFO 1.42b > Net Income 1.40b (YES >=105%, WARN >=100%) |
| Net Debt (2.71b) to EBITDA (2.10b) ratio: 1.29 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.31 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (406.0m) change vs 12m ago -1.22% (target <= -2.0% for YES) |
| Gross Margin 31.01% (prev 27.73%; Δ 3.27pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 71.08% (prev 66.42%; Δ 4.66pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 11.32 (EBITDA TTM 2.10b / Interest Expense TTM 161.0m) >= 6 (WARN >= 3) |
Altman Z'' 3.75
| (A) 0.19 = (Total Current Assets 3.69b - Total Current Liabilities 1.60b) / Total Assets 11.05b |
| (B) 0.31 = Retained Earnings (Balance) 3.43b / Total Assets 11.05b |
| (C) 0.17 = EBIT TTM 1.82b / Avg Total Assets 10.86b |
| (D) 0.35 = Book Value of Equity 2.09b / Total Liabilities 6.00b |
| Total Rating: 3.75 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 83.23
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 1.34% = 0.67 |
| 3. FCF Margin 13.18% = 3.30 |
| 4. Debt/Equity 0.65 = 2.30 |
| 5. Debt/Ebitda 1.55 = 0.86 |
| 6. ROIC - WACC 8.20% = 10.25 |
| 7. RoE 29.58% = 2.47 |
| 8. Rev. Trend 97.81% = 4.89 |
| 9. Rev. CAGR 12.73% = 1.59 |
| 10. EPS Trend 96.24% = 2.41 |
| 11. EPS CAGR 73.94% = 2.50 |
As of August 13, 2025, the stock is trading at USD 180.90 with a total of 1,256,100 shares traded.
Over the past week, the price has changed by +0.95%, over one month by -1.79%, over three months by +15.33% and over the past year by +95.42%.
Yes, based on ValueRay´s Fundamental Analyses, Howmet Aerospace (NYSE:HWM) is currently (August 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 83.23 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HWM is around 261.10 USD . This means that HWM is currently undervalued and has a potential upside of +44.33% (Margin of Safety).
Howmet Aerospace has received a consensus analysts rating of 4.40. Therefore, it is recommended to buy HWM.
- Strong Buy: 15
- Buy: 5
- Hold: 5
- Sell: 0
- Strong Sell: 0
According to our own proprietary Forecast Model, HWM Howmet Aerospace will be worth about 297 in August 2026. The stock is currently trading at 180.90. This means that the stock has a potential upside of +64.16%.
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 202.3 | 11.9% |
| Analysts Target Price | 164.9 | -8.9% |
| ValueRay Target Price | 297 | 64.2% |
HWM Fundamental Data Overview
CCE Cash And Equivalents = 545.0m USD (last quarter)
P/E Trailing = 53.2493
P/E Forward = 50.2513
P/S = 9.5057
P/B = 14.7169
P/EG = 0.8035
Beta = 1.482
Revenue TTM = 7.72b USD
EBIT TTM = 1.82b USD
EBITDA TTM = 2.10b USD
Long Term Debt = 3.25b USD (from longTermDebt, last quarter)
Short Term Debt = 5.00m USD (from shortTermDebt, last quarter)
Debt = 3.26b USD (Calculated: Short Term 5.00m + Long Term 3.25b)
Net Debt = 2.71b USD (from netDebt column, last quarter)
Enterprise Value = 76.11b USD (73.39b + Debt 3.26b - CCE 545.0m)
Interest Coverage Ratio = 11.32 (Ebit TTM 1.82b / Interest Expense TTM 161.0m)
FCF Yield = 1.34% (FCF TTM 1.02b / Enterprise Value 76.11b)
FCF Margin = 13.18% (FCF TTM 1.02b / Revenue TTM 7.72b)
Net Margin = 18.09% (Net Income TTM 1.40b / Revenue TTM 7.72b)
Gross Margin = 31.01% ((Revenue TTM 7.72b - Cost of Revenue TTM 5.33b) / Revenue TTM)
Tobins Q-Ratio = 36.43 (Enterprise Value 76.11b / Book Value Of Equity 2.09b)
Interest Expense / Debt = 1.17% (Interest Expense 38.0m / Debt 3.26b)
Taxrate = 16.49% (from yearly Income Tax Expense: 228.0m / 1.38b)
NOPAT = 1.52b (EBIT 1.82b * (1 - 16.49%))
Current Ratio = 2.31 (Total Current Assets 3.69b / Total Current Liabilities 1.60b)
Debt / Equity = 0.65 (Debt 3.26b / last Quarter total Stockholder Equity 5.04b)
Debt / EBITDA = 1.55 (Net Debt 2.71b / EBITDA 2.10b)
Debt / FCF = 3.20 (Debt 3.26b / FCF TTM 1.02b)
Total Stockholder Equity = 4.72b (last 4 quarters mean)
RoA = 12.65% (Net Income 1.40b, Total Assets 11.05b )
RoE = 29.58% (Net Income TTM 1.40b / Total Stockholder Equity 4.72b)
RoCE = 22.84% (Ebit 1.82b / (Equity 4.72b + L.T.Debt 3.25b))
RoIC = 19.04% (NOPAT 1.52b / Invested Capital 7.99b)
WACC = 10.84% (E(73.39b)/V(76.65b) * Re(11.28%)) + (D(3.26b)/V(76.65b) * Rd(1.17%) * (1-Tc(0.16)))
Shares Correlation 5-Years: -100.0 | Cagr: -1.21%
Discount Rate = 11.28% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 72.03% ; FCFE base≈999.6m ; Y1≈1.28b ; Y5≈2.37b
Fair Price DCF = 58.73 (DCF Value 23.67b / Shares Outstanding 403.1m; 5y FCF grow 30.0% → 2.90% )
Revenue Correlation: 97.81 | Revenue CAGR: 12.73%
Revenue Growth Correlation: -91.66%
EPS Correlation: 96.24 | EPS CAGR: 73.94%
EPS Growth Correlation: -77.65%
Additional Sources for HWM Stock
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