Howmet Aerospace Inc (HWM) Stock Analysis
Verdict: HOLD
HWM's industry-leading 28.3% operating margins justify a premium, but GE's CPP buyout and 49x P/E cap near-term risk-reward.
Investment score: 57/100
Analysis as of
Is Howmet Aerospace Inc stock worth reviewing? AI model thesis
Howmet Aerospace remains a structural winner in commercial jet engine components with unmatched 28.3% operating margins, but a 49x P/E multiple and competitive news from GE limit immediate upside.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Howmet Aerospace Inc opportunities and risks
What speaks for HWM
- Dominant supply chain monopoly with superior margin generation
What speaks against HWM
- Customer vertical integration and competitive casting capacity expansion
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| HWM | 49.2x | 10.1x | 34.8x | 34.4% | 20.5% | 1.7% |
| RTX | 34.4x | 2.8x | 18.5x | 20.3% | 8.3% | 4.5% |
| LMT.TO | 19.2x | 1.6x | 14.0x | 11.8% | 8.2% | 7.2% |
| BA | 78.8x | 1.8x | 29.5x | 4.7% | 2.6% | -0.1% |
| LMT | 19.2x | 1.6x | 14.0x | 11.8% | 8.2% | 7.2% |
| GD | 21.4x | 1.8x | 15.7x | 15.4% | 8.2% | 6.7% |
| Peer median | 21.4x | 1.8x | 15.7x | 11.8% | 8.2% | 6.7% |
Frequently asked questions about Howmet Aerospace Inc (HWM)
Is HWM stock a good investment?
The cached TradeMates AI model rates Howmet Aerospace Inc as HOLD with an investment score of 57/100. Howmet Aerospace remains a structural winner in commercial jet engine components with unmatched 28.3% operating margins, but a 49x P/E multiple and competitive news from GE limit immediate upside. This is algorithmic model output, not personal investment advice.
Is HWM stock a buy?
The TradeMates model verdict for HWM is HOLD with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.