HWM Howmet Aerospace Inc

Howmet Aerospace manufactures engineered components for the aerospace and defense industries, including turbine airfoils, structural castings, and fasteners. Sector: Industrials.

Howmet Aerospace Inc (HWM) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 20.36%, WACC is 11.08%, and the economic spread is 9.27%. On balance, the company is generating returns above their cost of capital, though the margin is slim enough to warrant attention. Supporting metrics show ROE at 30.37% and ROA at 12.96%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Multiple analysis puts the company at trailing P/E of 62.72, forward P/E of 50.52, PEG of 2.34. The spread from trailing to forward multiple is wide enough to suggest earnings momentum is a meaningful part of the current valuation case. On a PEG basis, valuation is in the middle ground — fair for the growth on offer, with the return case resting on earnings delivery rather than re-rating. The aggregate current ratio of 2.13 reflects a company with workable near-term liquidity positions. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

From gross to free cash flow, gross margin sits at 34.17%, operating margin at 25.53%, and free cash flow margin at 17.34%. At this gross margin level, pricing power is present but not dominant — cost management matters as much as revenue growth. The operating margin reading is healthy — adequate to support reinvestment without sacrificing profitability. The company's FCF margin is above average, pointing to the company with efficient capital deployment and durable cash generation. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Revenue momentum and analyst targets together paint a picture where the estimated 12-month price change of 11.82%, where consensus expectations favor gradual appreciation over the next year, while TTM revenue growth of 14.65% reflecting moderate but reliable revenue progress across the company. Reported revenue growth is the operational foundation; the analyst target spread shows what the market is willing to pay above it — and that premium can evaporate quickly if delivery slips. For investors, the central question is whether the operating momentum visible in revenues is durable enough to support the price appreciation implied by consensus targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental case holds up across most key dimensions — the combination of positive economic spread, reasonable valuation, and analyst support is constructive.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.