Howmet Aerospace Inc. (HWM)
Industrials · Aerospace & Defense · US stock · S&P 500 component
$193.29
▼ -14.86 (7.14%)
Fair valueOvervalued
$153 −20.8% to fair value
$77fair band $130–$186$230
Day's range
$190.32 – $203.00
52-week range
$188.83 – $310.00
About Howmet Aerospace Inc.
Howmet Aerospace makes engineered metal products for jet engines, airframes and industrial gas turbines. Its output includes precision cast and forged parts, fasteners and structural components, with aircraft and defense customers accounting for much of its demand. Revenue comes from supplying these parts to engine and aircraft manufacturers under long-term arrangements, so sales depend on commercial aircraft build rates and engine spare parts activity.
Over the last twelve months, $9.1 billion in revenue was reported. The three-year revenue growth rate is 13.4% a year. Profitability shows an operating margin of 27.4% and a return on invested capital of 21%. Net debt stands at 1.5 times EBITDA. Shareholders receive a dividend, yielding 0.3%. This gives an X-Ray Score of 55 out of 100.
Price chart
52-wk range $188.83 – $310.00Volume 6,608,219Daily, split-adjusted
Vitals
Market cap$77.7B
52-week range$188.83 – $310.00
Volume (last day)6,608,219
P/E (TTM)41.7
EBIT / EV yield3.1%
Free-cash-flow yield2.3%
Dividend yield0.3%
Revenue (TTM)$9.1B
Net income (TTM)$1.9B
Operating margin27.4%
Return on capital20.8%
Debt incl. leases$4.7B
Cash & securities$563M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$153middle half of models $119 – $199
Overvalued
−20.8% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $193
Undervalued < $130Fair $130 – $186Overvalued > $186
P/E multiple
$191
P/B multiple
$129
P/S multiple
$119
EV/EBITDA multiple
$161
EV/EBIT multiple
$156
EV/revenue multiple
$137
10-year DCF, EBITDA exit
$202
5-year DCF, EBITDA exit
$210
10-year DCF, revenue exit
$199
5-year DCF, revenue exit
$204
10-year DCF, growth exit
$102
5-year DCF, growth exit
$95
Dividend discount, stable · not used
$57
Dividend discount, multi-stage · not used
$59
Earnings power value
$86
Growth the price implies
22.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
10/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield3.1%
Free-cash-flow yield2.3%
Fair value vs price0.8×
Growth
Strong
87/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)13.4%
EPS growth (3y)49.5%
Growth consistency100%
Profitability
Fair
57/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital20.8%
Operating margin27.4%
Financial health
Strong
74/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA1.5×
Interest coverNo interest cost
Dividends
Fair
57/100
Dividend is typical for its sector.
See the numbers →
Dividend yield0.3%
Dividends vs free cash flow11%
Dividend growth60.2%
Quarterly results: last 6 quarters
+6.5%
Mar '25
+9.2%
Jun '25
+13.8%
Sep '25
+14.6%
Dec '25
+19.1%
Mar '26
+24.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.5B, diluted EPS $1.33.
Compare with peers
GD General Dynamics Corp70 TXT Textron Inc65 LHX L3harris Technologies,...60 TDG TransDigm Group INC57Other Aerospace & Defense companies by X-Ray Score.
SWOT analysis: Howmet Aerospace Inc.
Strengthsinside the company
- Return on invested capital is 20.8%, against a median of 12.8% for industry peers.
- Operating margin of 27.4% is well above the 10.3% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 13.4% a year over three years (median 9.9% for industry peers).
- Earnings per share have compounded at 49.5% a year over three years.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- No specific opportunity is visible in our valuation, sector or growth data.
Threatsvaluation and setting
- Trades at 41.5x earnings, 63% above the 25.4x median of industry peers, so the price already assumes better results.
- The price is 21% above our fair value estimate, so there is little room for disappointment.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare HWM with peers and sector
Medians of 11 Aerospace & Defense peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): GE 49, RTX 51, BA 35, LMT 55, GD 70, NOC 49.
| Metric | HWM | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 55 | 51 | 50 |
| Valuation | 10 | 61 | 48 |
| Growth | 87 | 58 | 50 |
| Profitability | 57 | 40 | 50 |
| Financial health | 74 | 55 | 49 |
| Dividends | 57 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
HWM ranks #31 of 81 in Industrials and #6 of 12 in Aerospace & Defense by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for HWM
Each factor is rated by where HWM stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 12 Good · 3 Average · 6 Bad of 21
Growth: 3 · 0 · 0
Profitability: 3 · 1 · 0
Financial strength: 3 · 1 · 0
Valuation: 0 · 0 · 5
Cash flow: 2 · 1 · 1
Efficiency: 1 · 0 · 0
| Factor | HWM | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +13.4% | Good beats 87% | +5.6% | – | – |
| Revenue growth, last year | +11.1% | Good beats 86% | +4.5% | +11.9% | ≈ In line |
| EPS growth, 3 years a year | +49.5% | Good beats 93% | +5.7% | – | – |
| Profitability | |||||
| Operating margin | 27.4% | Good beats 90% | 17.5% | 18.1% | ▲ Better |
| Net margin | 20.5% | Good beats 87% | 12.8% | 11.5% | ▲ Better |
| Return on invested capital | 20.8% | Good beats 67% | 14.9% | – | – |
| Return on equity | 32.6% | Average beats 66% | 23.7% | 18.9% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 1.5x | Average beats 61% | 1.8x | 2.1x | ▲ Better |
| Interest cover | 50.0x | Good beats 76% | 21.4x | 4.0x | ▲ Better |
| Current ratio | 1.82 | Good beats 80% | 1.25 | 2.13 | ▼ Worse |
| Piotroski F-score | 8 / 9 | Good beats 86% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 41.5x | Bad beats 14% | 28.9x | 38.8x | ≈ In line |
| Price / book | 13.6x | Bad beats 19% | 6.2x | 5.6x | ▼ Worse |
| Price / sales | 8.5x | Bad beats 6% | 3.5x | 3.4x | ▼ Worse |
| EV / EBITDA | 29.2x | Bad beats 9% | 18.5x | 17.4x | ▼ Worse |
| Free cash flow yield | 2.3% | Bad beats 11% | 3.8% | 2.2% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 19.6% | Good beats 81% | 13.8% | 10.3% | ▲ Better |
| Cash from operations / net income | 1.19 | Bad beats 26% | 1.39 | 1.25 | ≈ In line |
| Free cash flow growth, 3 years a year | +38.4% | Good beats 88% | +14.5% | – | – |
| Accruals (lower is better) | −2.6% | Average beats 42% | −3.2% | – | – |
| Efficiency | |||||
| Days sales outstanding | 42 days | Good beats 75% | 57 days | 34 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 9 Good · ● 3 Average · ● 3 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldBad
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Return on invested capitalGood
Operating marginGood
Each check is graded against the company's sector, not a fixed number. Checklist score 59/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $5.0B | $5.7B | $6.6B | $7.4B | $8.3B |
| Operating income | $748M | $919M | $1.2B | $1.6B | $2.0B |
| Net income | $258M | $469M | $765M | $1.2B | $1.5B |
| Operating cash flow | $449M | $733M | $901M | $1.3B | $1.9B |
| Operating margin | 15.0% | 16.2% | 18.1% | 22.0% | 24.8% |
| Free cash flow | $250M | $540M | $682M | $977M | $1.4B |
| Diluted EPS | $0.59 | $1.11 | $1.83 | $2.81 | $3.71 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
4 bullish · 0 neutral · 12 bearish
Weekly
Strongly bearish
2 bullish · 0 neutral · 10 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 215.4 | Bearish |
| EMA 10 | 213.4 | Bearish |
| SMA 20 | 221.9 | Bearish |
| EMA 20 | 220.1 | Bearish |
| SMA 50 | 239.8 | Bearish |
| EMA 50 | 235.1 | Bearish |
| SMA 100 | 256.6 | Bearish |
| EMA 100 | 244.6 | Bearish |
| SMA 200 | 249.2 | Bearish |
| EMA 200 | 239.7 | Bearish |
Oscillators (daily)
| RSI (14) | 22.08 | Bullish |
| MACD (12, 26) | -8.71 | Bearish |
| Momentum (12) | -16.54 | Bearish |
| Stochastic %K (14) | 7.07 | Bullish |
| Williams %R (14) | -92.93 | Bullish |
| CCI (20) | -268.6 | Bullish |
Pivot points (classic, last session)
S3 175.4 | S2 182.9 | S1 188.1 | Pivot 195.5 | R1 200.8 | R2 208.2 | R3 213.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.50 USD
Yield on today's price
0.26%
Frequency
Quarterly
Next ex-dividend date
6 Nov 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 0.1400 |
| 0.1400 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1000 | |
| 0.1000 | |
| 0.0800 | |
| 0.0800 | |
| 0.0500 | |
| 0.0500 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold HWM
| ETF | Share of the fund |
|---|---|
| ITA iShares U.S. Aerospace & Defense | 4.50% |
| PPA Invesco Aerospace & Defense | 4.48% |
| PAVE Global X U.S. Infrastructure Developme... | 3.27% |
| DFEN Daily Aerospace & Defense Bull 3X | 3.13% |
| XAR SPDR S&P Aerospace & Defense | 2.77% |
| VOT Vanguard Mid-Cap Growth | 2.37% |
| RPG Invesco S&P 500 Pure Growth | 2.35% |
| XLI Industrial Select Sector SPDR | 1.87% |
The eight funds with the largest weight in HWM among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
HWM stock splits
HWM has split its stock 4 times since 1995. The latest was a 1-for-3 reverse split on 6 Oct 2016.
Full HWM stock split history →HWM SEC filings
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Shareholder vote results
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Regulation FD disclosure
DEF 14ASEC EDGAR
Proxy statement
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.