Howmet Aerospace (HWM) AI Stock Analysis

• Market Cap: $76.68B
• Dividend Yield: 0.21%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 55.6
• Beta (1Y): 1.32
• Revenue Growth: 8.85%
• EPS Growth: 51.50%
• Country: US
• Employees: 23,930
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.91
• Shares Outstanding: 403,126,300
• 10 Day Avg. Volume: 2,409,979
• 30 Day Avg. Volume: 2,336,426
• PEG Ratio: 0.73
• Price to Book (P/B): 9.80
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 45.67
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 10.17
• Enterprise Value/Gross Profit: 34.78
• Enterprise Value/Ebitda: 37.37
• 1Y Price Target: $206.50
• Price Target Upside: 8.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $201.00 ▲(5.87% Upside)

Howmet Aerospace's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust revenue growth and strategic market expansions. However, the high P/E ratio and mixed technical indicators suggest caution. The company's increased guidance and strong cash flow management provide a positive outlook, but valuation concerns temper the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Howmet's products and successful market penetration, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management allows Howmet to return value to shareholders and invest in growth opportunities, enhancing financial stability.

Market Expansion

Expansion in defense and industrial markets diversifies Howmet's revenue streams, reducing reliance on any single sector and enhancing resilience.

Negative Factors

Commercial Transportation Challenges

Declining revenue in commercial transportation could impact Howmet's overall growth if the trend persists, highlighting sector-specific vulnerabilities.

Supply Chain Risks

Supply chain issues can disrupt production and delivery schedules, potentially affecting Howmet's ability to meet demand and maintain customer relationships.

Leadership Changes

Leadership changes can lead to strategic shifts and transitional challenges, potentially affecting Howmet's operational continuity and strategic execution.

Howmet Aerospace Business Overview & Revenue Model

Company Description

Howmet Aerospace Inc. (HWM) is a global leader in advanced aerospace and defense technologies, specializing in innovative engineered solutions for various sectors, including commercial aerospace, defense, and industrial markets. The company designs and manufactures high-performance products such as aerospace fasteners, castings, and engineered components, primarily focusing on lightweight materials and advanced manufacturing techniques to enhance fuel efficiency and performance in aircraft and other applications.

How the Company Makes Money

Howmet Aerospace generates revenue primarily through the sale of its aerospace and defense products. Key revenue streams include the production of aerospace fasteners, forged and cast components, and other engineered solutions that cater to major aircraft manufacturers and defense contractors. The company has established significant partnerships with leading industry players, which enables it to secure long-term contracts and maintain a steady flow of orders. Additionally, Howmet benefits from ongoing investments in research and development, focusing on new materials and manufacturing processes that meet the evolving needs of the aerospace sector, thereby enhancing its competitive edge and driving revenue growth.

Howmet Aerospace Financial Statement Overview

Summary

Howmet Aerospace exhibits strong financial health with robust revenue growth, efficient operations, and solid cash flow management. The reduction in leverage and strong return on equity further enhance its financial stability. Minor concerns exist regarding the slight decline in gross profit margin, but overall, the company's financial trajectory remains positive.

Income Statement

Howmet Aerospace has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.29%. The company maintains healthy margins, with a gross profit margin of 29.99% and a net profit margin of 18.09% in the TTM period. EBIT and EBITDA margins are also robust, indicating efficient operations. However, there is a slight decline in gross profit margin compared to the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.65, which is a significant improvement from previous years, indicating a reduction in leverage. Return on equity is strong at 29.58%, reflecting effective use of equity to generate profits. However, the equity ratio is moderate, suggesting room for improvement in asset financing through equity.

Cash Flow

The cash flow statement reflects positive trends, with a free cash flow growth rate of 19.7% in the TTM period. The operating cash flow to net income ratio of 0.89 indicates strong cash generation relative to net income. The free cash flow to net income ratio is healthy at 0.72, suggesting efficient conversion of earnings into cash. These metrics highlight the company's strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.72B	7.43B	6.64B	5.66B	4.97B	5.26B
Gross Profit	2.26B	2.05B	1.61B	1.35B	1.13B	1.14B
EBITDA	2.10B	1.84B	1.47B	1.10B	853.00M	831.00M
Net Income	1.40B	1.16B	765.00M	469.00M	258.00M	211.00M
Balance Sheet
Total Assets	11.05B	10.52B	10.43B	10.26B	10.22B	11.45B
Cash, Cash Equivalents and Short-Term Investments	545.00M	564.00M	610.00M	791.00M	720.00M	1.61B
Total Debt	3.26B	3.47B	3.83B	4.28B	4.35B	5.21B
Total Liabilities	6.00B	5.96B	6.39B	6.65B	6.71B	7.87B
Stockholders Equity	5.04B	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	1.42B	1.30B	901.00M	733.00M	449.00M	9.00M
Investing Cash Flow	-399.00M	-316.00M	-215.00M	-135.00M	107.00M	271.00M
Financing Cash Flow	-1.23B	-1.03B	-868.00M	-526.00M	-1.44B	-369.00M

Howmet Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 189.85 is above the 20-day moving average (MA) of 184.74, above the 50-day MA of 182.01, and above the 200-day MA of 151.00, indicating a bullish trend. The MACD of 3.79 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 69.15 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
PH	79 Outperform	95.00B	27.47	25.81%	0.91%	-0.40%	24.40%
AME	78 Outperform	43.05B	29.74	13.84%	0.65%	2.28%	7.94%
HWM	74 Outperform	$76.68B	55.59	29.98%	0.21%	8.85%	51.50%
EMR	73 Outperform	72.38B	27.95	13.35%	1.64%	4.78%	59.68%
CMI	71 Outperform	57.60B	19.47	24.95%	1.78%	-1.30%	53.39%
TDG	63 Neutral	73.01B	43.02	-34.99%	―	12.86%	11.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Howmet Aerospace Corporate Events

Howmet Aerospace’s Chief Legal Officer Resigns

On August 15, 2025, Lola F. Lin, Executive Vice President, Chief Legal and Compliance Officer and Secretary of Howmet Aerospace, announced her resignation effective September 5, 2025, to pursue another opportunity. The Legal and Compliance teams will temporarily report to Neil E. Marchuk, Executive Vice President and Chief Administrative Officer, until a successor is appointed.

Howmet Aerospace Grants CEO $45 Million Retention Award

On June 23, 2025, Howmet Aerospace Inc. amended its employment agreement with CEO John C. Plant, granting him a $45 million retention award in restricted stock units, set to vest in 2028. This amendment underscores the company’s commitment to retaining key leadership, potentially impacting its strategic stability and stakeholder confidence.