Howmet Aerospace Inc. (HWM) Financial Ratios
12 years of historical data (2014–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↑
41.28
↑+92% vs avg
5yr avg: 21.55
30Y Low6.5·High35.5
P/FCF
↑
68.00
↑+52% vs avg
5yr avg: 44.64
30Y Low23.1·High117.0
P/B Ratio
↑
18.41
↑+133% vs avg
5yr avg: 7.91
30Y Low0.7·High15.5
ROE
↑
30.4%
↓+56% vs avg
5yr avg: 19.6%
30Y Low-10%·High30%
Debt/EBITDA
↓
1.26
↓-50% vs avg
5yr avg: 2.54
30Y Low1.3·High6.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HWM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Howmet Aerospace Inc. trades at 65.4x earnings, 53% above its 5-year average of 42.6x, sitting at the 100th percentile of its historical range. Compared to the Industrials sector median P/E of 25.7x, the stock trades at a premium of 155%. On a free-cash-flow basis, the stock trades at 68.0x P/FCF, 52% above the 5-year average of 44.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $97.3B | $83.2B | $44.8B | $22.5B | $16.6B | $13.8B | $12.5B | $14.2B | $8.5B | $12.3B | $8.1B |
| Enterprise Value | $99.6B | $85.5B | $47.7B | $25.7B | $20.1B | $17.5B | $16.1B | $18.9B | $12.5B | $17.0B | $14.3B |
| P/E Ratio → | 65.42 | 55.26 | 38.92 | 29.57 | 35.50 | 53.95 | 59.46 | 30.17 | 13.17 | — | — |
| P/S Ratio | 11.79 | 10.09 | 6.04 | 3.39 | 2.93 | 2.78 | 2.38 | 2.01 | 0.60 | 0.95 | 0.66 |
| P/B Ratio | 18.41 | 15.55 | 9.85 | 5.58 | 4.61 | 3.95 | 3.50 | 3.08 | 1.52 | 2.50 | 1.57 |
| P/FCF | 68.00 | 58.17 | 45.90 | 33.01 | 30.73 | 55.38 | — | — | — | 117.05 | — |
| P/OCF | 51.65 | 44.18 | 34.55 | 24.99 | 22.64 | 30.84 | 1392.12 | 35.09 | 39.08 | 17.53 | 9.30 |
P/E links to full P/E history page with 30-year chart
HWM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Howmet Aerospace Inc.'s enterprise value stands at 41.3x EBITDA, 92% above its 5-year average of 21.6x. The Industrials sector median is 13.7x, placing the stock at a 202% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.37 | 6.43 | 3.88 | 3.55 | 3.51 | 3.07 | 2.66 | 0.89 | 1.31 | 1.16 |
| EV / EBITDA | 41.28 | 35.45 | 24.50 | 16.97 | 15.46 | 15.38 | 14.30 | 12.74 | 6.52 | 8.85 | 8.20 |
| EV / EBIT | 46.77 | 40.16 | 30.51 | 21.57 | 24.05 | 29.97 | 29.22 | 34.44 | 10.08 | 17.58 | 15.55 |
| EV / FCF | — | 59.78 | 48.87 | 37.74 | 37.18 | 69.89 | — | — | — | 161.75 | — |
HWM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Howmet Aerospace Inc. earns an operating margin of 25.8%, significantly above the Industrials sector average of 4.7%. Operating margins have expanded from 18.8% to 25.8% over the past 3 years, signaling improving operational efficiency. Return on equity of 30.4% is exceptionally high — well above the sector median of 8.2%. ROIC of 21.1% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.7% | 30.7% | 27.6% | 24.3% | 23.9% | 22.8% | 21.7% | 22.8% | 14.6% | 16.9% | 16.9% |
| Operating Margin | 25.8% | 25.8% | 22.5% | 18.8% | 18.3% | 17.4% | 16.1% | 16.7% | 9.6% | 10.5% | 9.8% |
| Net Profit Margin | 18.3% | 18.3% | 15.5% | 11.5% | 8.3% | 5.2% | 4.0% | 6.6% | 4.6% | -0.6% | -7.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.4% | 30.4% | 26.9% | 20.0% | 13.2% | 7.3% | 5.1% | 9.2% | 12.2% | -1.5% | -9.8% |
| ROA | 13.9% | 13.9% | 11.0% | 7.4% | 4.6% | 2.4% | 1.5% | 2.6% | 3.4% | -0.4% | -3.3% |
| ROIC | 21.1% | 21.1% | 17.0% | 13.0% | 10.9% | 9.1% | 7.8% | 9.4% | 10.5% | 9.8% | 5.5% |
| ROCE | 23.2% | 23.2% | 19.0% | 14.3% | 11.7% | 9.2% | 7.3% | 8.3% | 8.7% | 8.2% | 5.0% |
HWM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Howmet Aerospace Inc. carries a Debt/EBITDA ratio of 1.3x, which is manageable (59% below the sector average of 3.1x). Net debt stands at $2.3B ($3.0B total debt minus $742M cash). Interest coverage of 14.1x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.57 | 0.57 | 0.76 | 0.95 | 1.19 | 1.24 | 1.46 | 1.34 | 1.13 | 1.39 | 1.57 |
| Debt / EBITDA | 1.26 | 1.26 | 1.78 | 2.53 | 3.29 | 3.83 | 4.62 | 4.19 | 3.29 | 3.57 | 4.62 |
| Net Debt / Equity | — | 0.43 | 0.64 | 0.80 | 0.97 | 1.03 | 1.01 | 1.00 | 0.73 | 0.95 | 1.21 |
| Net Debt / EBITDA | 0.96 | 0.96 | 1.49 | 2.13 | 2.68 | 3.19 | 3.19 | 3.12 | 2.11 | 2.45 | 3.56 |
| Debt / FCF | — | 1.61 | 2.98 | 4.73 | 6.46 | 14.50 | — | — | — | 44.70 | — |
| Interest Coverage | 14.11 | 14.11 | 9.19 | 5.71 | 4.52 | 3.34 | 2.23 | 3.51 | 3.58 | 2.76 | 2.39 |
HWM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Howmet Aerospace Inc.'s current ratio of 2.13x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.09x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.86x to 2.13x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.13 | 2.13 | 2.17 | 1.86 | 2.12 | 2.18 | 2.21 | 1.42 | 1.87 | 2.26 | 2.14 |
| Quick Ratio | 1.09 | 1.09 | 0.98 | 0.87 | 1.04 | 1.07 | 1.32 | 1.03 | 1.16 | 1.38 | 1.32 |
| Cash Ratio | 0.42 | 0.42 | 0.36 | 0.34 | 0.53 | 0.57 | 0.97 | 0.38 | 0.65 | 0.76 | 0.68 |
| Asset Turnover | — | 0.74 | 0.71 | 0.64 | 0.55 | 0.49 | 0.46 | 0.40 | 0.75 | 0.69 | 0.62 |
| Inventory Turnover | 3.09 | 3.09 | 2.92 | 2.85 | 2.68 | 2.74 | 2.77 | 3.41 | 4.80 | 4.34 | 4.57 |
| Days Sales Outstanding | — | 35.21 | 34.83 | 38.04 | 34.61 | 30.83 | 24.78 | 47.93 | 38.99 | 38.69 | 42.73 |
HWM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Howmet Aerospace Inc. returns 1.0% to shareholders annually — split between a 0.2% dividend yield and 0.8% buyback yield. The payout ratio of 12.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 1.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.2% | 0.2% | 0.3% | 0.3% | 0.1% | 0.1% | 0.4% | 1.4% | 1.3% | 2.8% |
| Payout Ratio | 12.0% | 12.0% | 9.3% | 9.3% | 9.0% | 6.6% | 5.2% | 12.1% | 18.5% | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 1.8% | 2.6% | 3.4% | 2.8% | 1.9% | 1.7% | 3.3% | 7.6% | — | — |
| FCF Yield | 1.5% | 1.7% | 2.2% | 3.0% | 3.3% | 1.8% | — | — | — | 0.9% | — |
| Buyback Yield | 0.8% | 0.9% | 1.1% | 1.1% | 2.4% | 3.1% | 0.6% | 8.1% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.0% | 1.1% | 1.4% | 1.4% | 2.7% | 3.2% | 0.7% | 8.5% | 1.4% | 1.3% | 2.8% |
| Shares Outstanding | — | $406M | $410M | $416M | $421M | $435M | $439M | $463M | $503M | $451M | $438M |
Peer Comparison
Compare HWM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HWMYou | $97B | 65.4 | 41.3 | 68.0 | 30.7% | 25.8% | 30.4% | 21.1% | 1.3 |
 TDG | $67B | 37.1 | 20.9 | 37.0 | 60.1% | 47.2% | — | 20.9% | 6.6 |
 CW | $27B | 56.6 | 43.9 | 48.9 | 37.2% | 18.2% | 19.4% | 14.1% | 2.1 |
 KTOS | $10B | 456.2 | 110.8 | — | 22.1% | 2.1% | 1.3% | 1.4% | 2.1 |
 ATI | $21B | 54.5 | 28.1 | 63.7 | 21.8% | 13.8% | 20.9% | 14.5% | 2.4 |
 DRS | $11B | 38.5 | 23.5 | 46.5 | 23.2% | 9.5% | 10.5% | 10.5% | 1.1 |
 WWD | $22B | 50.9 | 35.5 | 64.1 | 26.8% | 14.3% | 18.6% | 13.3% | 1.2 |
 GE | $300B | 35.1 | 30.8 | 41.2 | 36.8% | 19.1% | 45.3% | 24.7% | 2.1 |
 RTX | $233B | 34.9 | 20.6 | 29.3 | 20.1% | 10.0% | 10.4% | 6.7% | 3.1 |
 BA | $177B | 90.5 | — | — | 4.8% | -6.1% | 289.7% | -9.5% | — |
 LMT | $117B | 23.7 | 16.0 | 17.0 | 10.2% | 10.3% | 76.9% | 23.9% | 2.6 |
| Industrials Median | — | 25.7 | 13.7 | 21.2 | 33.0% | 4.7% | 8.2% | 6.3% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonHWM — Frequently Asked Questions
Quick answers to the most common questions about buying HWM stock.
What is Howmet Aerospace Inc.'s P/E ratio?
Howmet Aerospace Inc.'s current P/E ratio is 65.4x. The historical average is 41.8x. This places it at the 100th percentile of its historical range.
What is Howmet Aerospace Inc.'s EV/EBITDA?
Howmet Aerospace Inc.'s current EV/EBITDA is 41.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
What is Howmet Aerospace Inc.'s ROE?
Howmet Aerospace Inc.'s return on equity (ROE) is 30.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.4%.
Is HWM stock overvalued?
Based on historical data, Howmet Aerospace Inc. is trading at a P/E of 65.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Howmet Aerospace Inc.'s dividend yield?
Howmet Aerospace Inc.'s current dividend yield is 0.18% with a payout ratio of 12.0%.
What are Howmet Aerospace Inc.'s profit margins?
Howmet Aerospace Inc. has 30.7% gross margin and 25.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Howmet Aerospace Inc. have?
Howmet Aerospace Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.