Howmet Aerospace Inc. (HWM)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose economics are proven and whose price leaves room for error. Howmet shows real momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.5B, net income $534.0M, and diluted EPS $1.33, versus EPS $1.00 in fiscal Q2 2025. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $580.0M and EPS $1.44. For fiscal 2025, revenue was $8.3B, net income $1.5B, and EPS $3.71; fiscal 2024 was $7.4B, $1.2B, and $2.81. That suggests pricing power and steady demand, though I cannot verify a durable moat from these figures alone. The four segments—engine products, fastening systems, engineered structures, and forged wheels—serve aerospace and transportation, but the key question is whether today’s profits are normalized. FairStock calculates ROE at 34.73% and ROCE at 12.81%, with Piotroski 7/9 and Altman Z 7.00; debt/equity is 0.81, so the balance sheet is not fragile. Free cash flow is $1.8B, a 2.3% yield. At the $194.36 close on 2026-10-26, FairStock puts P/E at 41.89, P/B at 13.56, EV/EBITDA at 28.42, and PEG at 1.28. Its Graham Number is $38.68, a negative margin of safety of 380.64%. The business is better than the price. Growth is strong, but the market is paying richly for it; the price leaves little Graham-style cushion.

In plain English: Howmet Aerospace makes advanced parts for aircraft engines, fasteners, structures, and forged wheels for aerospace and transportation. The business looks strong, with rising sales and profit and solid cash generation. At $194.36, however, the stock looks expensive compared with the company’s asset value and cash generation, so expectations are high.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer