(HWM) Howmet Aerospace - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE MKT (USA) | Market Cap: 104.512m USD | Total Return: 51.5% in 12m
Avg Turnover: 619M
EPS Trend: 99.6%
Qual. Beats: 5
Rev. Trend: 99.6%
Qual. Beats: 4
Warnings
Below Avwap Earnings
Tailwinds
Confidence
Howmet Aerospace Inc. (HWM) is a global manufacturer of advanced engineered components serving the aerospace, defense, and commercial transportation sectors. Operating through four primary segments-Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels-the company specializes in high-performance materials such as titanium, nickel, and aluminum alloys.
The business model relies on high barriers to entry due to the complex metallurgical requirements and stringent safety certifications necessary for aircraft engine and airframe components. In the aerospace sector, manufacturers often benefit from long-cycle contracts tied to major commercial and defense aircraft platforms, providing a degree of revenue visibility.
Investors looking for deeper financial metrics and valuation models may find further insights by exploring ValueRay. Founded in 1888 and headquartered in Pittsburgh, the company transitioned from its previous identity as Arconic Inc. to focus specifically on precision-engineered solutions for extreme-environment applications.
- Commercial aircraft production ramp-ups drive demand for engine components and fasteners
- Defense spending increases bolster revenue for engineered structures and titanium products
- Higher engine build rates and aftermarket service demand expand operating margins
- Raw material price volatility and energy costs impact aerospace segment profitability
- Commercial truck production cycles dictate growth for the forged aluminum wheels business
| 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 0.29%; Δ 3.23k% > 0.5%) |
| Asset Turnover: 72.34% > 50% (prev 70.07%; Δ 2.27% > 0%) |
| Interest Coverage Ratio: 15.30 > 6 (EBITDA TTM 2.66b / 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: 0.44 (Book Value of Equity 3.33b / Total Liabilities 7.54b) |
| Altman-Z'' = 4.63 = AA |
| DSRI: 0.91 (Receivables 940.0m/901.0m, Revenue 8.62b/7.55b) |
| GMI: 0.88 (GM 32.56% / 28.64%) |
| 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 = -3.23 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 256.55 with a total of 1,694,800 shares traded.
Over the past week, the price has changed by -1.46%,
over one month by +6.19%,
over three months by -1.15% and
over the past year by +51.53%.
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 | 301.8 | 17.7% |
P/E Trailing = 60.6056
P/E Forward = 52.6316
P/S = 12.1202
P/B = 18.9265
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 = 107b USD (105b + Debt 4.85b - CCE 2.44b)
Interest Coverage Ratio = 15.30 (Ebit TTM 2.37b / Interest Expense TTM 155.0m)
EV/FCF = 74.51x (Enterprise Value 107b / FCF TTM 1.44b)
FCF Yield = 1.34% (FCF TTM 1.44b / Enterprise Value 107b)
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 = 8.18 (Enterprise Value 107b / Total Assets 13.1b)
Interest Expense / Debt = 3.20% (Interest Expense 155.0m / Debt 4.85b)
Taxrate = 18.08% (128.0m / 708.0m)
NOPAT = 1.94b (EBIT 2.37b * (1 - 18.08%))
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 = 17.14% (NOPAT 1.94b / Invested Capital 11.3b)
WACC = 10.07% (E(105b)/V(109b) * Re(10.42%) + D(4.85b)/V(109b) * Rd(3.20%) * (1-Tc(0.18)))
Discount Rate = 10.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -1.18%
[DCF] Terminal Value 72.60% ; FCFF base≈1.27b ; Y1≈1.45b ; Y5≈2.14b
[DCF] Fair Price = 55.61 (EV 24.7b - Net Debt 2.41b = Equity 22.3b / Shares 400.1m; r=10.07% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.61 | EPS CAGR: 42.98% | SUE: 2.55 | # 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=+6.84% | Revisions=+33% | Analysts=14
EPS next Quarter (2026-09-30): EPS=1.26 | Chg30d=+5.18% | Revisions=+33% | Analysts=14
EPS current Year (2026-12-31): EPS=5.06 | Chg30d=+8.67% | Revisions=+56% | GrowthEPS=+34.3% | GrowthRev=+18.0%
EPS next Year (2027-12-31): EPS=5.99 | Chg30d=+6.67% | Revisions=+50% | GrowthEPS=+18.3% | GrowthRev=+12.4%
[Analyst] Revisions Ratio: +56%