Howmet Aerospace Inc. (HWM) Factsheet
Howmet Aerospace Inc. (HWM) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 18.2%. FCF margin 17.3%. D/E 0.6x. Source: 10-Q filed 2025-10-30.
| Metric | Value | Context |
|---|---|---|
| ROIC | 18.2% | Solid returns |
| FCF Margin | 17.3% | Strong cash generation |
| Debt/Equity | 0.6x | Moderate leverage |
ROIC 18.2% — Top 25% of sector peers. FCF margin 17.3% — Top 10%.
Explore Howmet Aerospace Inc.: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for HWM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Howmet Aerospace Inc. earns 18.2% ROIC, Top 25% in Industrials
ROIC TTM 18.2%, sector median 7.3%, Top 25%. DuPont: NOPAT margin 20.3% × asset turnover 0.8x. Gross margin 34.2%. Operating margin 24.8%. Source: 10-Q filed 2025-10-30.
| Metric | HWM | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.2% | Good | Above sector median of 7.3% |
| Return on Equity (ROE) | 30.2% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 34.2% | Good | Competitive pricing environment |
| Operating Margin | 24.8% | Excellent | Efficient operations |
Cash Flow: Howmet Aerospace Inc. generates $1.4B FCF at 17.3% margin, positive NaN/8 quarters
FCF TTM $1.4B. FCF margin 17.3%, Top 10%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.
| Metric | HWM | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 17.3% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.4B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Howmet Aerospace Inc. at 0.6x leverage
Debt/Equity 0.6x. Total debt $3.0B, cash & investments $743.0M. Source: 10-Q filed 2025-10-30.
| Metric | HWM | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.6x | Good | Moderate leverage |
| Net Cash Position | $-2.3B | Warning | Net debt position |
Valuation: Howmet Aerospace Inc. trades at 54.8x earnings
P/E 54.8x. EV/Sales 10.4x. FCF yield 1.7%. Dividend yield 0.2%. Source: 10-Q filed 2025-10-30.
| Metric | HWM | Rating | Context |
|---|---|---|---|
| P/E Ratio | 54.8x | Warning | Premium valuation |
| EV/Sales | 10.4x | Warning | Growth premium priced in |
| FCF Yield | 1.7% | Warning | Lower cash yield |
| Dividend Yield | 0.2% | Adequate | Growth focus over income |
Capital Allocation: Howmet Aerospace Inc. returns 1.1% shareholder yield
Total shareholder yield 1.1% (div 0.2% + buyback 0.8%). Capital returned $881.0M TTM. Source: 10-Q filed 2025-10-30.
| Metric | HWM | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.1% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.8% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $881.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.2% | Top 25% | 2.5x above |
| Free Cash Flow Margin | 17.3% | Top 10% | 3.7x above |
| Gross Margin | 34.2% | Top 50% | 1.0x above |
| Operating Margin | 24.8% | Top 5% | 3.4x above |
| Return on Equity (ROE) | 30.2% | Top 25% | 3.4x above |
| P/E Ratio | 54.8x | N/A | - |
Financial Scorecard
| Metric | HWM | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.2% | Good | Top 25% of sector (median: 7.3%) |
| Free Cash Flow Margin | 17.3% | Good | Top 10% of sector (median: 4.7%) |
| Gross Margin | 34.2% | Good | Top 50% of sector (median: 33.1%) |
| Debt to Equity Ratio | 57.0% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 54.8x | Warning | High expectations priced in |
| Free Cash Flow Yield | 1.7% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is Howmet Aerospace Inc.'s Return on Invested Capital (ROIC)?
Howmet Aerospace Inc. (HWM) has a trailing twelve-month Return on Invested Capital (ROIC) of 18.2%. Sector median 7.3%. Source: 10-Q filed 2025-10-30.
Q: What is Howmet Aerospace Inc.'s Free Cash Flow Margin?
Howmet Aerospace Inc. (HWM) has a free cash flow margin of 17.3%, generating $1.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.
Q: What is Howmet Aerospace Inc.'s P/E ratio and how does it compare to peers?
Howmet Aerospace Inc. (HWM) trades at a P/E ratio of 54.8x, which is above the sector median of N/A. EV/Sales 10.4x. FCF yield 1.7%. Source: 10-Q filed 2025-10-30.
Q: Does Howmet Aerospace Inc. pay a dividend?
Howmet Aerospace Inc. (HWM) currently pays a dividend yield of 0.2%. Total shareholder yield (dividend + buybacks) 1.1%. Source: 10-Q filed 2025-10-30.
Q: How much debt does Howmet Aerospace Inc. have?
Howmet Aerospace Inc. (HWM) has a debt-to-equity ratio of 0.6x with total debt of $3.0 billion. Net debt $2.3 billion. Source: 10-Q filed 2025-10-30.
Q: What is Howmet Aerospace Inc.'s revenue and earnings growth?
Howmet Aerospace Inc. (HWM) grew revenue by 11.1% year-over-year. EPS +31.6% YoY. Source: 10-Q filed 2025-10-30.
Q: Is Howmet Aerospace Inc. buying back stock?
Howmet Aerospace Inc. (HWM) repurchased $700.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.8%. Source: 10-Q filed 2025-10-30.
Q: How does Howmet Aerospace Inc. compare to competitors in Industrials?
Compared to other companies in Industrials, Howmet Aerospace Inc. (HWM) shows: ROIC 18.2%, sector median 7.3% (Top 25%). FCF margin 17.3%, sector median 4.7% (Top 10%). Gross margin 34.2%, 1.1pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with Howmet Aerospace Inc.?
No quantitative warning flags fired for Howmet Aerospace Inc. (HWM) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-30.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.