HWM
Howmet Aerospace
$284.77
▼ 1.7%Updated Aug 7, 11:30 AM ET
HWM at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 63.1% over the last 12 months
Market Cap
$108.19B
P/E
63.69x
Forward P/E (est.)
45.49x
ROE
33.1%
Revenue Growth
14.2%
EPS Growth
40.2%
Profit Margin
20.2%
FCF Yield
0.8%
Debt / Equity
0.57x
ROIC
19.0%
Interest Coverage
9.39x
Current Ratio
2.44x
Dividend Yield
0.2%
Implied Growth (rev. DCF)
7.6%
Rating Score
59/100
Howmet Aerospace (HWM) is a large-cap company in the Aerospace & Defense industry, part of the Industrials sector of the S&P 500, with a market value around $108.19B.
In its latest reported year it generated about $8.25B in revenue and $1.51B in net profit.
Our model rates HWM Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
21.6% average over the last 3 years
±6.3 pts around 13.9% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 5 of 10 years
19.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HWM's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HWM trades near $284.77, above its 50-day average ($259.67) and 200-day average ($227.59). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. HWM's is $9.63 (~3.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month HWM found buyers near $243.68 (support) and sellers near $290.63 (resistance); its 52-week range is $169.45–$290.63. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
13.5%
Revenue moved from $12.39B in 2016 to $8.25B in 2025, a -4.4% compound annual growth rate. The most recent year grew a steady 14.2% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
35.0%
Operating Margin
24.8%
Net Margin
18.3%
ROE
33.1%
Howmet Aerospace keeps about 20.2% of each sales dollar as net profit, with a 35.0% gross margin and 24.8% operating margin. Return on equity is 33.1% and return on invested capital about 19.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$3.05B
Net Debt
$615.00M
Net Debt / EBITDA
0.3x
Debt / Equity
0.57x
Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 9.4x, with a current ratio of 2.4x. That is a moderate, manageable debt load for most businesses. It carries roughly $3.05B of total debt against $2.44B of cash.
Operating CF
$1.88B
Free Cash Flow
$1.43B
FCF Margin
17.3%
In the latest year Howmet Aerospace produced about $1.88B of operating cash flow and $1.43B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.2%
Per share (latest FY)
$0.44
Total paid (latest FY)
$179.00M
History on record
10 years
dividend uses 13% of free cash flow
12% of net income paid out
total dividends increased 5 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
63.69x
P/S
13.11x
P/B
15.81x
EV / EBITDA
—
HWM trades at 63.7x trailing earnings (about 45.5x on estimated forward earnings), 13.1x sales, and 15.8x book value. Reverse-engineering today's price implies the market expects roughly 7.6% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$108.55
Current price
$284.77
Starting FCF (latest 10-K)
$1.43B
Growth, years 1–5
14.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where HWM sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How HWM stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), HWM ranks #35 of 273 by our overall rating. It trades at a premium versus the sector on earnings (63.7x P/E vs. 32x median) with a higher return on equity (33.1% vs. 18.1%) and faster revenue growth (14.2% vs. 6.0%).
P/E vs sector
63.7x
median 32x
ROE vs sector
33.1%
median 18.1%
Growth vs sector
14.2%
median 6.0%
Sector rank
#35
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $284.77 today · expected CAGR 0% – 11%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.41B | $10.72B | $12.23B | $13.94B | $15.89B |
| Net income | $1.69B | $1.93B | $2.20B | $2.51B | $2.86B |
| EPS | $4.46 | $5.08 | $5.79 | $6.60 | $7.53 |
| Share price (low) | $169.36 | $193.07 | $220.10 | $250.92 | $286.05 |
| Share price (high) | $285.24 | $325.17 | $370.70 | $422.60 | $481.76 |
| CAGR (low–high) | -41% / 0% | -18% / 7% | -8% / 9% | -3% / 10% | 0% / 11% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for HWM:
- Revenue is growing 14.2% a year, a sign of real demand.
- High net margins (20.2%) point to pricing power or efficiency.
- Strong return on equity (33.1%) shows capital is put to work well.
- Our model's overall read is Favorable (59/100).
The case against HWM:
- A rich 63.7x earnings multiple prices in a lot of growth.
- Limited free cash flow at today's price.
Valuation risk — at 63.7x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Howmet Aerospace is a large-cap industrials business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 63.7x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 28 Wall Street analysts covering HWM recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
HWM's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
HWM — frequently asked questions
Is HWM a good stock to buy?
We don't give buy or sell advice. Our model rates Howmet Aerospace Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is HWM's rating on The Stocks School?
Howmet Aerospace currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does HWM's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Howmet Aerospace's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for HWM calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this HWM analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell HWM. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.