Howmet Aerospace Inc.
Howmet Aerospace Inc. Fundamental Analysis
Howmet Aerospace Inc. (48Z.DE) shows strong financial fundamentals with a PE ratio of 59.94, profit margin of 20.23%, and ROE of 31.99%. The company generates $8.3B in annual revenue with strong year-over-year growth of 11.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 48Z.DE's fundamental strength across five key dimensions:
Efficiency Score
Excellent48Z.DE demonstrates superior asset utilization.
Valuation Score
Moderate48Z.DE shows balanced valuation metrics.
Growth Score
Excellent48Z.DE delivers strong and consistent growth momentum.
Financial Health Score
Excellent48Z.DE maintains a strong and stable balance sheet.
Profitability Score
Excellent48Z.DE achieves industry-leading margins.
Key Financial Metrics
Is 48Z.DE Expensive or Cheap?
P/E Ratio
48Z.DE trades at 59.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 48Z.DE's PEG of 1.12 indicates fair valuation.
Price to Book
The market values Howmet Aerospace Inc. at 18.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 41.49 times EBITDA. This signals the market has high growth expectations.
How Well Does 48Z.DE Make Money?
Net Profit Margin
For every $100 in sales, Howmet Aerospace Inc. keeps $20.23 as profit after all expenses.
Operating Margin
Core operations generate 26.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.99 in profit for every $100 of shareholder equity.
ROA
Howmet Aerospace Inc. generates $12.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Howmet Aerospace Inc. generates strong operating cash flow of $2.08B, reflecting robust business health.
Free Cash Flow
Howmet Aerospace Inc. generates strong free cash flow of $1.43B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.57 in free cash annually.
FCF Yield
48Z.DE converts 1.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How 48Z.DE Stacks Against Its Sector Peers
| Metric | 48Z.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.94 | 26.13 | Worse (Expensive) |
| ROE | 31.99% | 1245.00% | Weak |
| Net Margin | 20.23% | -34958.00% (disorted) | Strong |
| Debt/Equity | 0.88 | 0.74 | Neutral |
| Current Ratio | 2.44 | 10.42 | Strong Liquidity |
| ROA | 12.91% | -1486191.00% (disorted) | Strong |
48Z.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Howmet Aerospace Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
669.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
22446.56%
Industry Style: Cyclical, Value, Infrastructure
High Growth