Howmet Aerospace (HWM) AI Stock Analysis

• Market Cap: $65.80B
• Dividend Yield: 0.19%
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 53.2
• Beta (1Y): 1.35
• Revenue Growth: 10.01%
• EPS Growth: 47.87%
• Country: US
• Employees: 23,930
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 0.86
• Shares Outstanding: 403,674,070
• 10 Day Avg. Volume: 2,921,819
• 30 Day Avg. Volume: 2,670,424
• PEG Ratio: 5.51
• Price to Book (P/B): 13.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 62.54
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 28.92
• Enterprise Value/Ebitda: 9.27
• 1Y Price Target: $162.38
• Price Target Upside: -1.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 79 Outperform
• Price Target: ―

Howmet Aerospace's stock is supported by strong financial performance and positive earnings momentum. Despite a high P/E ratio suggesting overvaluation, the company's robust revenue growth, improved margins, and strategic shareholder returns are significant strengths. Technical indicators suggest caution due to potential short-term corrections, but overall, the outlook remains positive.

Positive Factors

Financial Strength

Howmet Aerospace demonstrated significant cash flow and repurchased $125 million of stock, indicating financial strength.

Market Demand

Demand across commercial aerospace, defense, and industrial end markets shows little signs of slowing.

Market Share Opportunity

HWM likely captures fastener share following the SPS fire, creating a near- and long-term opportunity to secure incremental share.

Profitability

Howmet exceeded expectations on strong profitability, as investment in growth and improved productivity translated to strong performance.

Negative Factors

Sales Outlook

HWM expects H2 Forged Wheels sales to drop year over year versus its prior view of positive H2 growth.

Segment Sales Decline

Forged Wheels managed well through the cyclical sales decline that is ongoing and perhaps, getting worse.

Howmet Aerospace Business Overview & Revenue Model

Company Description

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating parts, as well as structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners. The Engineered Structures segment provides titanium ingots and mill products for aerospace and defense applications; and aluminum and nickel forgings, and machined components and assemblies. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. The company was founded in 1888 and is based in Pittsburgh, Pennsylvania.

How the Company Makes Money

Howmet Aerospace makes money through the design, manufacture, and sale of its highly specialized products, primarily serving the aerospace and transportation industries. The company's revenue model revolves around producing components for jet engines, aircraft structures, industrial gas turbines, and commercial vehicle wheels. Key revenue streams include contracts with major aerospace manufacturers like Boeing and Airbus, sales to defense contractors, and partnerships with automotive companies. Howmet Aerospace benefits from long-term agreements and recurring sales due to the demand for replacement parts and the high entry barriers in its specialized markets. Additionally, the company invests in research and development to innovate and maintain its competitive edge, further supporting its earnings.

Howmet Aerospace Financial Statement Overview

Summary

Howmet Aerospace exhibits strong financial performance with significant revenue growth and enhanced profit margins. The balance sheet shows improved leverage with a strong equity base, and cash flow statements reflect strong cash generation and effective capital management. Continued focus on managing debts and capital expenditures is essential.

Income Statement

Howmet Aerospace has demonstrated strong revenue growth, with a steady increase from $4,972M in 2021 to $7,548M TTM. Gross profit margin has improved significantly, reaching 47.5% TTM, up from 27.7% in 2020. The net profit margin has also strengthened to 16.6% TTM, indicating enhanced profitability. EBIT and EBITDA margins are solid at 23.6% and 26.2% TTM respectively, showcasing operational efficiency. However, the company must continue to manage costs effectively to maintain these margins.

Balance Sheet

The company's balance sheet reflects a stable financial position with an equity ratio of 44.5% TTM, indicating a strong equity base. The debt-to-equity ratio has improved to 0.69 TTM, down from 1.42 in 2020, suggesting effective debt management. Return on equity is robust at 26.2% TTM, highlighting efficient use of equity to generate profits. However, total debt remains significant, requiring careful monitoring to avoid potential leverage risks.

Cash Flow

Operating cash flow has grown steadily, reaching $1,374M TTM, indicating strong cash generation from operations. Free cash flow has also improved to $1,016M TTM, reflecting effective capital expenditure management. The operating cash flow to net income ratio is favorable at 1.09 TTM, showing solid cash conversion. Despite positive cash flow trends, monitoring capital expenditures will be crucial to sustaining free cash flow growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.55B	7.43B	6.64B	5.66B	4.97B	5.26B
	Gross Profit
2.30B	2.31B	1.87B	1.56B	1.38B	1.38B
	EBIT
1.78B	1.63B	1.20B	919.00M	748.00M	626.00M
	EBITDA
1.98B	1.84B	1.47B	1.26B	1.09B	831.00M
	Net Income Common Stockholders
1.26B	1.16B	765.00M	469.00M	258.00M	261.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
536.00M	564.00M	610.00M	791.00M	720.00M	1.61B
	Total Assets
10.77B	10.52B	10.43B	10.26B	10.22B	11.45B
	Total Debt
3.48B	3.47B	3.83B	4.16B	4.23B	5.08B
	Net Debt
2.95B	2.91B	3.23B	3.37B	3.51B	3.46B
	Total Liabilities
5.98B	5.96B	6.39B	6.65B	6.71B	7.87B
	Stockholders Equity
4.79B	4.55B	4.04B	3.60B	3.51B	3.58B
Cash Flow		Free Cash Flow
1.02B	977.00M	682.00M	540.00M	250.00M	-258.00M
	Operating Cash Flow
1.37B	1.30B	901.00M	733.00M	449.00M	9.00M
	Investing Cash Flow
-356.00M	-316.00M	-215.00M	-135.00M	107.00M	271.00M
	Financing Cash Flow
-1.01B	-1.03B	-868.00M	-526.00M	-1.44B	-369.00M

Howmet Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 165.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWM, the sentiment is Positive. The current price of 165.09 is above the 20-day moving average (MA) of 155.84, above the 50-day MA of 138.92, and above the 200-day MA of 118.00, indicating a bullish trend. The MACD of 8.14 indicates Positive momentum. The RSI at 74.35 is Negative, neither overbought nor oversold. The STOCH value of 74.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWM.

Howmet Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOV	80 Outperform	$24.66B	10.83	17.45%	1.15%	-5.86%	59.79%
ITW	80 Outperform	$71.70B	21.54	107.62%	2.41%	-1.85%	12.04%
HWM	79 Outperform	$65.80B	53.15	28.29%	0.19%	10.01%	47.87%
PH	76 Outperform	$83.99B	25.30	27.16%	0.99%	-0.23%	22.41%
OTIS	71 Outperform	$38.20B	25.38	-33.93%	1.60%	-0.88%	9.98%
CMI	70 Outperform	$44.33B	16.01	27.78%	2.22%	-0.39%	47.31%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%

Howmet Aerospace Corporate Events

Howmet Aerospace CEO Sells Shares for Diversification

On May 12, 2025, John Plant, Executive Chairman and CEO of Howmet Aerospace Inc., sold 800,000 shares of the company’s common stock for estate planning, tax planning, and financial diversification. This marks Mr. Plant’s first sale of common stock during his tenure, yet he retains a substantial interest in the company, maintaining his position among the top 25 largest shareholders, which underscores his confidence and commitment to the company’s long-term value.

The most recent analyst rating on (HWM) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Howmet Aerospace stock, see the HWM Stock Forecast page.

Howmet Aerospace Releases 2024 Annual and ESG Reports

On April 16, 2025, Howmet Aerospace Inc. released its 2024 Annual Report and Environmental, Social and Governance (ESG) Report on its website. The Annual Report, which includes a letter from the Executive Chairman and CEO, highlights the company’s achievements in 2024 and provides a market outlook for 2025. The ESG Report details Howmet’s commitment to environmental, social, and governance performance, underscoring its dedication to sustainable practices.