Howmet Aerospace Inc.

Industrials
Metal Fabrications
www.howmet.com

Earnings Score
Moat Score
Safety Score

Market Cap $48.17B
PE 45
Debt $3.40B
Cash $475.00M
EV $51.09B
FCF $1.00B

Earnings

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Sales & Net Margins

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Earnings	$1.08B
EBIT	$1.51B
ROE	24%
ROA	14%
FCF	$1.00B
Equity	$4.50B
Growth Stability	56%
PE	44.81
PEG	1.87
PB	10.7
P/FCF	48.07
P/S	6.63
Price/Cash	0.01
Debt/Equity	0.75
Debt/FCF	3.39
Net Margins	15%
Gross Margins	30%
Op. Margins	21%
Earnings CAGR	5%
Sales Growth YoY	11%
Sales Growth QoQ	-2%
Sales CAGR	-14%
FCF CAGR	12%
Equity CAGR	-14%
Earnings Stability	0.07
Earnings Growth YoY	77%
Earnings Growth QoQ	24%

Earnings CAGR 5Y	24%
Sales CAGR 5Y	-6%
FCF CAGR 5Y	109%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	16%
Sales CAGR 3Y	16%
FCF CAGR 3Y	64%
Equity CAGR 3Y	11%
Market Cap	$48.17B
Revenue	$7.27B
Assets	$10.56B
Total Debt	$3.40B
Cash	$475.00M
Shares Outstanding	407.13M
EV	51.09B
Earnings Score	7%
Moat Score	95%
Safety Score	72%
Final Score	58%
Working Capital	1.87B
Current Ratio	2.24
Gross Profit	$2.21B
Shares Growth 3y	-1%
Equity Growth QoQ	5%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Howmet Aerospace Inc produces products that are used primarily in aerospace, commercial transportation, and industrial and other markets. The company seeks to provide its customers with innovative solutions through offering differentiated products such as airfoils with advanced cooling and coatings for extreme temperature applications, specially designed fasteners for lightweight composite airframe construction, reduced assembly costs, and lightning strike protection and lightweight aluminum commercial wheels. It has four reportable segments namely, Engine Products, Fastening Systems, Engineered Structures and Forged Wheels.

SEC Filings

Direct access to Howmet Aerospace Inc. (HWM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Howmet Aerospace Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Howmet Aerospace Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability 7%

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Howmet Aerospace Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Howmet Aerospace Inc..

Years

Calculation mode

= $23B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1B	$1.1B	$1.3B	$1.4B	$1.6B	$1.7B	$2B	$2.2B	$2.4B	$2.7B	$3.1B	$31B
DCF		$1B	$1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.2B	$1.2B	$12B
Value	$23B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	1%	-2%	-8%	-1%	5%	3%	5%	5%	8%	11%	15%
ROA	-	2%	5%	5%	7%	6%	5%	7%	9%	12%	14%
ROE	-	-3%	-20%	-3%	11%	10%	7%	7%	13%	19%	24%

Good Net Margins (15.15%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	22.64	-31.7	65.19	-12.22	-38.57	-21.13	16.95	7.71	5.74	3.39
Debt over Equity	0.6	0.64	1.57	1.39	1.21	1.5	1.52	1.21	1.16	0.97	0.75
Growth Stability	-	-	-	-	-	-	79%	56%	100%	100%	56%

Neutral Debt/FCF ratio (3.39)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.75)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (56%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-6%	-45%	5%	8%	1%	-63%	-5%	14%	17%	-6%
Earnings YoY growth	-	-321%	158%	-87%	-604%	-27%	-45%	-1%	82%	63%	24%
Equity YoY growth	-	-4%	-64%	-4%	13%	-17%	-23%	-2%	3%	12%	1%
FCF YoY growth	-	-12%	-163%	-141%	-625%	-67%	43%	-197%	116%	26%	109%