NYSE:HWM

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Executive Summary

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries. More Details


Snowflake Analysis

Undervalued with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

HWM

-1.1%

US Aerospace & Defense

-0.4%

US Market


1 Year Return

-31.4%

HWM

-28.1%

US Aerospace & Defense

18.3%

US Market

Return vs Industry: HWM underperformed the US Aerospace & Defense industry which returned -29.6% over the past year.

Return vs Market: HWM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HWMIndustryMarket
7 Day1.9%-1.1%-0.4%
30 Day15.1%2.5%8.0%
90 Day21.9%-0.3%9.4%
1 Year-10.4%-31.4%-13.0%-28.1%21.0%18.3%
3 Year2.5%-23.0%4.2%-16.6%42.1%32.7%
5 Yearn/a53.7%15.1%85.6%64.7%

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

Valuation

Is Howmet Aerospace undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HWM ($18.85) is trading below our estimate of fair value ($33.53)

Significantly Below Fair Value: HWM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HWM is good value based on its PE Ratio (14x) compared to the US Aerospace & Defense industry average (21.6x).

PE vs Market: HWM is good value based on its PE Ratio (14x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HWM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HWM's PB Ratio (2.4x) is in line with the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is Howmet Aerospace forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWM's forecast earnings growth (19.8% per year) is above the savings rate (2.2%).

Earnings vs Market: HWM's earnings (19.8% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: HWM's earnings are forecast to grow, but not significantly.

Revenue vs Market: HWM's revenue (1.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: HWM's revenue (1.2% 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 (8.3%).


Next Steps

Past Performance

How has Howmet Aerospace performed over the past 5 years?

71.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWM has a large one-off loss of $266.0M impacting its June 30 2020 financial results.

Growing Profit Margin: HWM's current net profit margins (4.3%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: HWM has become profitable over the past 5 years, growing earnings by 71.9% per year.

Accelerating Growth: HWM's earnings growth over the past year (79.9%) exceeds its 5-year average (71.9% per year).

Earnings vs Industry: HWM earnings growth over the past year (79.9%) exceeded the Aerospace & Defense industry 1.6%.


Return on Equity

High ROE: HWM's Return on Equity (17.1%) is considered low.


Next Steps

Financial Health

How is Howmet Aerospace's financial position?


Financial Position Analysis

Short Term Liabilities: HWM's short term assets ($3.7B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: HWM's short term assets ($3.7B) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: HWM's debt to equity ratio (147.5%) is considered high.

Reducing Debt: Insufficient data to determine if HWM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HWM's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: HWM's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Howmet Aerospace current dividend yield, its reliability and sustainability?

0.035%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HWM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HWM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HWM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HWM's dividend payments have been 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?

1.2yrs

Average management tenure


CEO

John Plant (66 yo)

0.50

Tenure

US$51,918,638

Compensation

Mr. John C. Plant, FCA, is the Co-Chief Executive Officer and Director of Howmet Aerospace Inc. (Formerly known as Arconic Inc.) since April 01, 2020. Mr. Plant served as the Chief Executive Officer of How ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD51.92M) is above average for companies of similar size in the US market ($USD7.32M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Plant
Executive Chairman & Co-CEO0.50yrUS$51.92m0.28%
$ 23.5m
Kenneth Giacobbe
Executive VP & CFO3.92yrsUS$4.57m0.058%
$ 4.8m
Katherine Ramundo
Executive VP3.92yrsUS$2.68m0.040%
$ 3.3m
Neil Marchuk
Executive VP & Chief Human Resource Officer1.58yrsUS$3.98m0.047%
$ 3.9m
Tolga Oal
Co-CEO & Director0.50yrno data0.053%
$ 4.4m
Paul Luther
Vice President of Investor Relationsno datano datano data
Christopher Favo
Chief Ethics & Compliance Officer0.33yrno datano data
Esra Ozer
Chief Communications Officer and VP of Inclusion & Diversity12.75yrsno datano data
Randall Scheps
President of Howmet Wheel Systems0.75yrno datano data
Vitaliy Rusakov
President of Fastening Systemsno datano datano data
Margaret Lam
Assistant Secretaryno datano datano data
Merrick Murphy
President of Structure & Wheel Systemsno datano datano data

1.2yrs

Average Tenure

53yo

Average Age

Experienced Management: HWM's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Plant
Executive Chairman & Co-CEO0.50yrUS$51.92m0.28%
$ 23.5m
Tolga Oal
Co-CEO & Director0.50yrno data0.053%
$ 4.4m
James Albaugh
Lead Independent Director0.50yrUS$345.00k0.0046%
$ 381.8k
Robert Leduc
Independent Director0.50yrno data0.0026%
$ 217.4k
Ulrich Schmidt
Independent Director4.67yrsUS$338.85k0.0036%
$ 293.4k
Nicole Piasecki
Independent Director0.50yrno data0.0026%
$ 217.4k
Joseph Cantie
Independent Director0.50yrno data0.0035%
$ 287.6k
Amy Alving
Independent Director2.42yrsUS$321.35k0.0095%
$ 786.0k
David Miller
Independent Director2.83yrsUS$294.00k0.0023%
$ 191.7k
Jody Miller
Independent Director0.50yrno datano data

0.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HWM's board of directors are not considered experienced ( 0.5 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.


Recent Insider Transactions

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:
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$8.265b
  • Shares outstanding: 436.14m
  • Website: https://www.howmet.com

Number of Employees


Location

  • Howmet Aerospace Inc.
  • 201 Isabella Street
  • Suite 200
  • Pittsburgh
  • Pennsylvania
  • 15212-5872
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HWMNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2016
48ZDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016
HWM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2016
ARNCSNSE (Santiago Stock Exchange)YesCommon StockCLUSDOct 2016
0TCULSE (London Stock Exchange)YesCommon StockGBUSDOct 2016
HWMWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2016
HWM.PRAMEX (NYSE MKT LLC)PFD SER AUSUSDNov 2016
HWMBASE (Buenos Aires Stock Exchange)CEDEAR EACH 6 REP 1 COM USD1ARARSNov 2016
ARNC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 SHSBRBRLMay 2017

Biography

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries. It offers jet engine components, aerospace fastening systems, and titanium structural parts for ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:56
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.