A Business at a Glance
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Item 1. Business. Howmet Aerospace Inc. is a Delaware corporation with its principal office in Pittsburgh, Pennsylvania. In this report, unless the context otherwise requires, “Howmet”, the “Company”, “we”, “us”, and “our” refer to Howmet Aerospace Inc. and its consolidated subsidiaries. The Company’s Internet address is https://www.howmet.com. Howmet makes available free of charge on or through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as well as proxy statements, as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the Securities and Exchange Commission (“SEC”). The Company’s website is included in this annual report on Form 10-K as an inactive textual reference only.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.3B | 8.3B | 7.4B | 6.6B | 5.7B | 5.0B |
| Net Income | 1.5B | 1.5B | 1.2B | 763M | 467M | 258M |
| EPS | $3.71 | $3.71 | $2.81 | $1.83 | $1.11 | $0.59 |
| Free Cash Flow | 1.4B | 1.4B | 977M | 682M | 540M | 250M |
| ROIC | 21.4% | 24.2% | 20.2% | 14.0% | 11.5% | 9.4% |
| Gross Margin | 34.2% | 34.2% | 31.1% | 28.1% | 27.5% | 27.7% |
| Debt/Equity | 0.61 | 0.61 | 0.73 | 0.97 | 1.16 | 1.21 |
| Dividends/Share | $0.45 | $0.44 | $0.26 | $0.17 | $0.10 | $0.04 |
| Operating Income | 2.0B | 2.0B | 1.6B | 1.2B | 919M | 748M |
| Operating Margin | 24.8% | 24.8% | 22.0% | 18.1% | 16.2% | 15.0% |
| ROE | 28.1% | 30.4% | 25.3% | 18.9% | 13.0% | 7.4% |
| Shares Outstanding | 406M | 406M | 410M | 417M | 421M | 437M |
Howmet Aerospace Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Howmet Aerospace Inc. trades at 69.0x trailing earnings, compared to its 15-year median P/E of 46.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 71.8x vs a median of 49.1x. The company's 5-year average ROIC is 15.9% with a gross margin of 29.7%. Total shareholder yield (dividends + buybacks) is 0.8%. At current prices, the estimated annualized return to fair value is +71.0%.
Howmet Aerospace Inc. (HWM) has a current P/E ratio of 69.0, compared to its historical median P/E of 46.2. The stock is currently considered Expensive based on its historical valuation range.
Howmet Aerospace Inc. (HWM) has a 5-year average return on invested capital (ROIC) of 15.9%. This indicates strong capital allocation and a potential competitive advantage.
Howmet Aerospace Inc. (HWM) has a market capitalization of $104.0B. It is classified as a large-cap stock.
Yes, Howmet Aerospace Inc. (HWM) pays a dividend with a trailing twelve-month yield of 0.17%. The company also returns capital through share buybacks, with a buyback yield of 0.67%.
Based on historical P/E analysis, Howmet Aerospace Inc. (HWM) appears expensive. The current P/E of 69.0 is 49% above its historical median of 46.2. The estimated fair value CAGR (P/E method) is 34.0%.
Howmet Aerospace Inc. (HWM) operates in the Rolling Drawing & Extruding Of Nonferrous Metals industry, within the Materials sector.
Howmet Aerospace Inc. (HWM) reported annual revenue of $8.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Howmet Aerospace Inc. (HWM) has a net profit margin of 18.3%. This is a healthy margin.
Howmet Aerospace Inc. (HWM) generated $1.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Howmet Aerospace Inc. (HWM) has a debt-to-equity ratio of 0.61. This indicates moderate leverage.
Howmet Aerospace Inc. (HWM) reported earnings per share (EPS) of $3.71 in its most recent fiscal year.
Howmet Aerospace Inc. (HWM) has a return on equity (ROE) of 30.4%. This indicates the company generates strong returns for shareholders.
Howmet Aerospace Inc. (HWM) has a 5-year average gross margin of 29.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for Howmet Aerospace Inc. (HWM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Howmet Aerospace Inc. (HWM) has a book value per share of $13.19, based on its most recent annual SEC filing.