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
Reasonable growth potential and slightly overvalued.
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 +/- 5% a week.
Volatility Over Time: HWM's weekly volatility (5%) has been stable over the past year.
7 Day Return
US Aerospace & Defense
1 Year Return
US Aerospace & Defense
Return vs Industry: HWM exceeded the US Aerospace & Defense industry which returned 30.7% over the past year.
Return vs Market: HWM exceeded the US Market which returned 48.3% over the past year.
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
1 week ago | Simply Wall StHowmet Aerospace (NYSE:HWM) Has A Somewhat Strained Balance Sheet
3 weeks ago | Simply Wall StIs Howmet Aerospace Inc.'s (NYSE:HWM) ROE Of 5.9% Concerning?
1 month ago | Simply Wall StCalculating The Intrinsic Value Of Howmet Aerospace Inc. (NYSE:HWM)
Is Howmet Aerospace undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HWM ($32.58) is trading below our estimate of fair value ($47.08)
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 (104.1x) compared to the US Aerospace & Defense industry average (29.8x).
PE vs Market: HWM is poor value based on its PE Ratio (104.1x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: HWM is poor value based on its PEG Ratio (2.6x)
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).
How is Howmet Aerospace forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HWM's forecast earnings growth (40.6% per year) is above the savings rate (2%).
Earnings vs Market: HWM's earnings (40.6% per year) are forecast to grow faster than the US market (15% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HWM's revenue (10.7% per year) is forecast to grow faster than the US market (9% per year).
High Growth Revenue: HWM's revenue (10.7% 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 (15.1%).
How has Howmet Aerospace performed over the past 5 years?
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 (-6.2%).
Return on Equity
High ROE: HWM's Return on Equity (3.8%) is considered low.
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 ($5.6B).
Debt to Equity History and Analysis
Debt Level: HWM's debt to equity ratio (128.7%) is considered high.
Reducing Debt: HWM's debt to equity ratio has increased from 72.8% to 128.7% over the past 5 years.
Debt Coverage: HWM's debt is not well covered by operating cash flow (4.5%).
Interest Coverage: HWM's interest payments on its debt are not well covered by EBIT (2x coverage).
What is Howmet Aerospace current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HWM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HWM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HWM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HWM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: HWM is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HWM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Plant (66 yo)
Mr. John C. Plant, FCA, has been the Co-Chief Executive Officer of Howmet Aerospace Inc. (Formerly known as Arconic Inc.) since April 01, 2020. Mr. Plant served as the Chief Executive Officer of Howmet Aer...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD39.09M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: HWM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: HWM's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Howmet Aerospace Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Howmet Aerospace Inc.
- Ticker: HWM
- Exchange: NYSE
- Founded: 1888
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$14.580b
- Shares outstanding: 434.33m
- Website: https://www.howmet.com
Number of Employees
- Howmet Aerospace Inc.
- 201 Isabella Street
- Suite 200
- United States
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||2021/05/10 23:17|
|End of Day Share Price||2021/05/10 00:00|
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.