Howmet Aerospace (HWM) Valuation in Focus as Veteran CFO Plans 2025 Retirement and Successor Named

Howmet Aerospace (HWM) is drawing attention following news that Ken Giacobbe, the company’s Chief Financial Officer for over two decades, will retire at the end of 2025. Patrick Winterlich, who joins from Hexcel, will take over in December.

See our latest analysis for Howmet Aerospace.

The leadership transition comes at a time of strong stock momentum for Howmet Aerospace, with a 1-year total shareholder return of over 96% and share price up 79% year-to-date. The company’s ability to consistently generate substantial long-term gains, delivering an impressive 454% total return over three years, suggests investor confidence remains high even as it navigates management changes and sector-wide shifts.

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With shares trading near all-time highs and analysts’ targets offering only a modest premium from this level, the key question for investors is whether there is still upside left or if the market has already accounted for Howmet’s future growth.

Most Popular Narrative: 6.4% Undervalued

With analysts assigning a fair value above the latest close, the consensus leans positive. The contrast between current market enthusiasm and these projections sets the stage for deeper discussions about future prospects.

The shift towards newer, fuel-efficient aircraft and ongoing replacement of aging fleets are driving strong demand for advanced, lightweight components and fasteners. This is positioning Howmet for expanded content per aircraft and higher net margins over the next several years.

Read the complete narrative.

Want to see the bold assumptions behind this valuation? The secret sauce of this narrative is rapid profit growth paired with a premium profit multiple. Don’t miss the surprising benchmarks that analysts believe will set the tone for Howmet’s future.

Result: Fair Value of $211.99 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, supply chain disruptions or unexpected slowdowns in aerospace demand could quickly challenge even the most optimistic profit and margin projections for Howmet.

Find out about the key risks to this Howmet Aerospace narrative.

Another View: What Do Valuation Ratios Say?

Looking at Howmet’s valuation through the lens of its price-to-earnings ratio tells a different story. The company trades at 57.4 times earnings, which is significantly higher than the US Aerospace & Defense industry average of 39.6x, its peer average of 30.2x, and even above its fair ratio of 36x. This premium signals that investors have high expectations for future growth, but also raises the risk of a pullback if those expectations are not met. Could the current multiples be stretched too far, or is there more upside yet to come?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Howmet Aerospace Narrative

If you think there’s more to the story, dive into the data and shape your own narrative in just a few minutes. Do it your way

A great starting point for your Howmet Aerospace research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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