Howmet Aerospace
Market Cap
US$13.9b
Last Updated
2021/07/23 01:34 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has Howmet Aerospace's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HWM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HWM's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-0.2%
HWM
0.4%
US Aerospace & Defense
0.4%
US Market
1 Year Return
105.3%
HWM
23.7%
US Aerospace & Defense
36.9%
US Market
Return vs Industry: HWM exceeded the US Aerospace & Defense industry which returned 23.5% over the past year.
Return vs Market: HWM exceeded the US Market which returned 35.1% over the past year.
Shareholder returns
| HWM | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 0.4% | 0.4% |
| 30 Day | -4.4% | -2.0% | 1.6% |
| 90 Day | 1.2% | 2.9% | 2.7% |
| 1 Year | 105.3%105.3% | 26.3%23.7% | 39.1%36.9% |
| 3 Year | 99.7%51.2% | 21.8%-3.7% | 61.0%51.0% |
| 5 Year | n/a | 73.5%29.9% | 122.5%97.8% |
Long-Term Price Volatility Vs. Market
How volatile is Howmet Aerospace's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
An Intrinsic Calculation For Howmet Aerospace Inc. (NYSE:HWM) Suggests It's 32% Undervalued1 month ago | Simply Wall St
Investors Who Bought Howmet Aerospace (NYSE:HWM) Shares A Year Ago Are Now Up 153%2 months ago | Simply Wall St
Is Now The Time To Look At Buying Howmet Aerospace Inc. (NYSE:HWM)?Valuation
Is Howmet Aerospace undervalued compared to its fair value and its price relative to the market?
35.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HWM ($32.33) is trading below our estimate of fair value ($50.07)
Significantly Below Fair Value: HWM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HWM is poor value based on its PE Ratio (103.3x) compared to the US Aerospace & Defense industry average (32.8x).
PE vs Market: HWM is poor value based on its PE Ratio (103.3x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: HWM is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: HWM is overvalued based on its PB Ratio (3.9x) compared to the US Aerospace & Defense industry average (2.7x).
Future Growth
How is Howmet Aerospace forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
45.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HWM's forecast earnings growth (45.4% per year) is above the savings rate (2%).
Earnings vs Market: HWM's earnings (45.4% per year) are forecast to grow faster than the US market (15.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HWM's revenue (10.9% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: HWM's revenue (10.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HWM's Return on Equity is forecast to be low in 3 years time (15.5%).
Past Performance
How has Howmet Aerospace performed over the past 5 years?
75.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HWM has a large one-off loss of $200.0M impacting its March 31 2021 financial results.
Growing Profit Margin: HWM's current net profit margins (2.8%) are higher than last year (2.7%).
Past Earnings Growth Analysis
Earnings Trend: HWM has become profitable over the past 5 years, growing earnings by 75.2% per year.
Accelerating Growth: HWM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HWM had negative earnings growth (-28.8%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-15%).
Return on Equity
High ROE: HWM's Return on Equity (3.8%) is considered low.
Financial Health
How is Howmet Aerospace's financial position?
Financial Position Analysis
Short Term Liabilities: HWM's short term assets ($3.3B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: HWM's short term assets ($3.3B) do not cover its long term liabilities ($5.6B).
Debt to Equity History and Analysis
Debt Level: HWM's debt to equity ratio (128.7%) is considered high.
Reducing Debt: HWM's debt to equity ratio has increased from 72.8% to 128.7% over the past 5 years.
Debt Coverage: HWM's debt is not well covered by operating cash flow (4.5%).
Interest Coverage: HWM's interest payments on its debt are not well covered by EBIT (2x coverage).
Balance Sheet
Dividend
What is Howmet Aerospace current dividend yield, its reliability and sustainability?
0.25%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HWM's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: HWM's dividend (0.25%) is low compared to the top 25% of dividend payers in the US market (3.52%).
Stability and Growth of Payments
Stable Dividend: HWM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: HWM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: HWM is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HWM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
John Plant (67 yo)
1.25yrs
Tenure
US$39,091,008
Compensation
Mr. John C. Plant, FCA, has been the Co-Chief Executive Officer of Howmet Aerospace Inc. (Formerly known as Arconic Inc.) since April 01, 2020. Mr. Plant served as the Chief Executive Officer of Howmet Aer...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD39.09M) is above average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HWM's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
Experienced Board: HWM's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Howmet Aerospace Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Howmet Aerospace Inc.
- Ticker: HWM
- Exchange: NYSE
- Founded: 1888
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$13.883b
- Shares outstanding: 429.43m
- Website: https://www.howmet.com
Number of Employees
Location
- Howmet Aerospace Inc.
- 201 Isabella Street
- Suite 200
- Pittsburgh
- Pennsylvania
- 15212-5872
- United States
Listings
Biography
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,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/23 01:34 |
| End of Day Share Price | 2021/07/22 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.