Howmet Aerospace Inc.

Valuation Analysis

About the Company

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 and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum

Howmet Aerospace Inc. Stock at a Glance

Howmet Aerospace Inc. (HWM) is currently trading at $264.67 with a market capitalization of $105.9B. The trailing P/E ratio stands at 61.41x, with a forward P/E of 43.99x. The 52-week range spans from $169.06 to $280.74; the current price is 5.7% below the yearly high. Year-over-year revenue growth stands at +19.1%. The net profit margin stands at 20.23%.

💰 Dividend

Howmet Aerospace Inc. pays an annual dividend of $0.48 per share, representing a yield of 0.18%. The payout ratio stands at 10.67%.

📊 Analyst Rating

20 analysts rate Howmet Aerospace Inc. (HWM) on consensus: None. The average price target is $303.23, implying +14.57% from the current price. Analyst price targets range from $256.56 to $340.00.

Howmet Aerospace Inc.: The Investment Case in Detail

Howmet Aerospace Inc. (HWM) operates in the Industrials — specifically Aerospace & Defense — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 19.1% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 71.4% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Return on equity of 33.82% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.8, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 42.29x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 43.99x is meaningfully below the trailing 61.41x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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