Howmet Aerospace Inc
Exchange: NYSE MKTSector: IndustrialsIndustry: Aerospace & Defense
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint.
Did you know?
Pays a 0.19% dividend yield.
Current Price
$242.44
-1.51%GoodMoat Value
$150.52
37.9% overvaluedProfile
Valuation (TTM)
Market Cap$97.48B
P/E64.64
EV$97.21B
P/B18.21
Shares Out402.06M
P/Sales11.81
Revenue$8.25B
EV/EBITDA43.88
Howmet Aerospace Inc (HWM) Stock Analysis
GoodMoat Analysis
Howmet Aerospace is a high-quality aerospace components manufacturer with strong profitability and growth, but its current valuation appears to be extremely high relative to its intrinsic value. The stock fails the GoodMoat Decision Framework's Valuation & Risk Gate, indicating an unfavourable risk/reward profile for a value investor.
Read full analysis
Howmet Aerospace is a leading manufacturer of engineered components for the aerospace and defense industries, specializing in lightweight aluminum wheels, fasteners, and propulsion systems. Applying the GoodMoat framework, the company demonstrates several quality indicators, including a strong operating margin of 24.8%, an impressive ROE of 28.2%, and robust revenue growth of 14.6% YoY. Its competitive advantages likely stem from high switching costs and niche dominance as a mission-critical supplier with long-term contracts in a regulated industry, though a full Moat Score cannot be precisely calculated from the given data.
However, the valuation assessment reveals significant concerns. The stock trades at a P/E of 64.4, which is exceptionally high for a company with mid-teens growth, and carries a low free cash flow yield of 1.5%. Most critically, the current price of $241.62 is far above the GoodMoat Target of $150.52, suggesting a negative margin of safety. According to Section 6 of the framework, a stock that is severely overvalued—trading at a premium of over 60% to its estimated fair value—fails the Valuation & Risk Gate and is classified as unfavourable. While the underlying business is strong, the price demands near-perfect future execution and offers no margin of safety for a value-oriented investor.
Analysis based on data as of 2024-05-15.
Market Cap$97.48B
Current Price$242.44
P/E Ratio64.64
Forward P/E—
PEG Ratio3.32
EPS$3.71
Book Value$13.31
P/B Ratio18.21
HWM Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 2.3B
Revenue
7.1B
FY19
5.3B
FY20
5.0B
FY21
5.7B
FY22
6.6B
FY23
7.4B
FY24
8.3B
FY25
Net Income
470M
FY19
261M
FY20
258M
FY21
469M
FY22
765M
FY23
1.2B
FY24
1.5B
FY25
HWM 52-Week Range
$136.02
$265.11
50-Day MA: $247.10200-Day MA: $208.63
Did you know?
Price sits at 82% of its 52-week range.
Howmet Aerospace Inc (HWM) Financial Summary
Howmet Aerospace Inc (HWM) is a Industrials company in the Aerospace & Defense industry, listed on NYSE MKT. The stock currently trades at $242.44 with a market capitalization of $97.48B.
Key valuation metrics include a P/E ratio of 64.64, price-to-book ratio of 18.21, and EPS of $3.71. The company reports a profit margin of 18.3% and return on equity of 28.2%.
HWM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $97.48B |
| P/E Ratio | 64.64 |
| EPS | $3.71 |
| P/B Ratio | 18.21 |
| P/S Ratio | 11.81 |
| EV/EBITDA | 43.88 |
| Dividend Yield | 0.19% |
| Profit Margin | 18.3% |
| Return on Equity | 28.2% |
| Debt/Equity | 0.57 |
HWM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.10B | $470.00M |
| FY20 | $5.26B | $261.00M |
| FY21 | $4.97B | $258.00M |
| FY22 | $5.66B | $469.00M |
| FY23 | $6.64B | $765.00M |
| FY24 | $7.43B | $1.16B |
| FY25 | $8.25B | $1.51B |
Howmet Aerospace Inc (HWM) Valuation
Based on GoodMoat's DCF model, Howmet Aerospace Inc has a fair value estimate of $150.52. At the current price of $242.44, the stock appears 61.1% overvalued relative to our intrinsic value estimate.
HWM Quality Indicators
Howmet Aerospace Inc maintains a profit margin of 18.3% and an operating margin of 24.8%. Return on equity stands at 28.2%. The current ratio is 2.13. Debt-to-equity ratio is 0.57.
About Howmet Aerospace Inc
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint.
HWM Free Cash Flow
Howmet Aerospace Inc generated $1.43B in trailing twelve-month free cash flow, representing an FCF yield of 1.47%. This low FCF yield may reflect heavy reinvestment or growth spending.
HWM Shares Outstanding
Howmet Aerospace Inc has 0.40 billion shares outstanding at a share price of $242.44, giving it a market capitalization of $97.48B.
HWM Recent Insider Trades
Recent insider transactions at Howmet Aerospace Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Shultz Barbara Lou (Vice President and Controller) | SELL | 1,000 | $260005.00 |
| Marchuk Neil Edward (EVP, CAO) | SELL | 45,150 | $11.36M |