Howmet Aerospace Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 15, 2026.
Howmet Aerospace Inc. gets a balanced fundamental read when revenue growth of 13.81%, EPS growth of 50.70%, free-cash-flow growth of 76.77%, net margin of 20.52%, and ROIC of 18.58% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.82x and debt-to-equity is 0.79x, so the balance-sheet read is part of the final view rather than a footnote.
Howmet Aerospace Inc. has market cap of $89.89B and closed at $225 on September 15, 2026.
Five-year revenue CAGR is 13.81% and five-year EPS CAGR is 50.70%.
Five-year free-cash-flow CAGR is 76.77%.
Net margin is 20.52% and ROIC is 18.58%.
Current ratio is 1.82x and debt-to-equity is 0.79x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
A Multi-Dimensional Assessment of Aerospace Manufacturing Performance
Analyzing Howmet Aerospace Inc. requires evaluating whether top-line expansion, operational efficiency, capital allocation, and balance-sheet strength align to support a cohesive fundamental narrative. As of September 15, 2026, the stock closed at $225, serving as the market price baseline for this fundamental inquiry. Rather than relying on a single metric, this research note dissects the underlying financial engine to see if the operational reality matches the market pricing.
The core analysis begins by examining the five-year revenue compound annual growth rate of 13.81% alongside the five-year EPS CAGR of 50.70%. To verify the quality of these earnings, we cross-reference them with a five-year free cash flow CAGR of 76.77%. This systematic approach prevents any single growth metric from distorting the broader business assessment.
Current compounder snapshot · HWM
Live supporting context; not part of the article's frozen 2026-09-15 evidence snapshot.
An Integrated View of Scale, Profitability, and Capital Structure
As an industrial manufacturer in the Industrials sector, Howmet Aerospace Inc. must be evaluated through its tangible operating performance. This snapshot consolidates the firm's market capitalization, valuation multiples, historical growth rates, and leverage ratios into a single analytical frame. This structured foundation prepares the ground for a detailed review of the accompanying financial exhibits.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered. Q2 FY2026 (2026-06-30): $2.55B.
-51.13% over 10Y
tgmcharts.com
Five-year revenue CAGR: 13.81%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 13.81% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Evaluating Top-Line Leverage and Shareholder Return Velocity
Growth conversion measures how effectively a firm translates incremental sales into net income for shareholders. For this business, five-year revenue growth has advanced at a 13.81% CAGR, while five-year EPS growth has accelerated at a 50.70% rate. When per-share earnings outpace top-line expansion by a wide margin, it is critical to investigate whether the divergence stems from structural margin improvements, share buybacks, or cyclical base effects.
EPS
HWM EPS
$1.33
EPS history shows how much of the business growth has reached shareholders. Q2 FY2026 (2026-06-30): $1.33.
+250.00% over 10Y
tgmcharts.com
Five-year EPS CAGR: 50.70%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 50.70% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Net Income Quality Through Cash Flow Generation
Free cash flow serves as the ultimate reality check for any GAAP earnings expansion. With a five-year free cash flow CAGR of 76.77%, the cash generation profile of the business has shown substantial upward momentum. If cash generation were to fall behind net income trends in future periods, it would signal that the quality of the reported earnings trajectory might be deteriorating.
free cash flow
HWM free cash flow
$479.00M
Free cash flow checks whether earnings are converting into owner cash. Q2 FY2026 (2026-06-30): $479.00M.
≈24x over 10Y
tgmcharts.com
Five-year free-cash-flow CAGR: 76.77%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 76.77% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Operating Efficiency and Capital Allocation Returns
To determine if the historical growth trajectory is sustainable, we examine the underlying efficiency of the business model. The company currently generates a net margin of 20.52%, demonstrating its ability to retain a significant portion of sales as profit. Meanwhile, a return on invested capital of 18.58% indicates that management is deploying capital into projects that generate strong economic profits, reinforcing the overall durability of the business.
net margin
HWM net margin
20.97%
Net margin is the operating-quality check behind the growth record. Q2 FY2026 (2026-06-30): 20.97%.
+17.8pp over 10Y
tgmcharts.com
Net margin (TTM): 20.52%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 20.52% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
ROIC
HWM ROIC
18.58%
ROIC tests whether the business earns enough on reinvested capital to deserve attention. Q2 FY2026 (2026-06-30): 18.58%.
+16.6pp over 10Y
tgmcharts.com
Latest ROIC: 18.58%.
ROIC of 18.58% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Analyzing Liquidity Buffers and Solvency Guardrails
A company's balance sheet provides the necessary financial flexibility to navigate macroeconomic cycles and fund capital expenditure. The firm maintains a current ratio of 1.82x, reflecting its short-term liquidity position, alongside a debt-to-equity ratio of 0.79x. These metrics are crucial because even highly profitable growth can be compromised if a firm takes on excessive leverage or experiences tightening liquidity.
debt-to-equity
HWM debt-to-equity Chart
0.57x
Debt-to-equity keeps the checkup honest about balance-sheet flexibility. Historical series through 2025-12-31.
-60.96% over 5Y
tgmcharts.com
Latest debt-to-equity ratio: 0.79x.
Debt-to-equity of 0.79x and current ratio of 1.82x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Contextualizing the Current Market Price and Multiples
Valuation metrics indicate what performance expectations the market has already priced in. The equity trades at a trailing price-to-earnings multiple of 48.42x, which corresponds to an earnings yield of 2.07%. This pricing sits above the analyst DCF estimate, suggesting that the market is discounting a continuation of high-quality growth and robust capital returns.
The close at $225 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing Structural Drivers Against Execution Risks
The optimistic case for the company rests on its ability to maintain its five-year revenue growth of 13.81% and EPS growth of 50.70% while preserving a net margin of 20.52% and an ROIC of 18.58%. Conversely, the risk is that free cash flow growth, currently at a 76.77% CAGR, could decelerate and decouple from earnings, or that balance-sheet metrics like the current ratio of 1.82x could weaken under stress.
Bull and bear case
Fundamental support
Five-year revenue CAGR of 13.81% and five-year EPS CAGR of 50.70% support the business case.
Net margin of 20.52% and ROIC of 18.58% are the quality checks behind the thesis.
Fundamental pressure
Free-cash-flow CAGR of 76.77% can weaken the read if it falls away from EPS growth.
Debt-to-equity of 0.79x and current ratio of 1.82x are the balance-sheet checks that can change the view.
Key Indicators to Monitor on Subsequent Updates
This fundamental assessment will require revision if upcoming financial reports show a meaningful deviation in revenue growth, EPS expansion, cash conversion, or leverage. The data presented serves as general research context and does not constitute personalized investment advice or a specific transaction recommendation.
FAQ
What is the fundamental read on HWM?
Howmet Aerospace Inc. is judged through revenue growth of 13.81%, EPS growth of 50.70%, free-cash-flow growth of 76.77%, net margin of 20.52%, and ROIC of 18.58%.
Which HWM fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this HWM checkup refresh?
Its figures are as of September 15, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
Revenue growth moving away from the current five-year CAGR of 13.81%.
Free-cash-flow growth drifting away from five-year EPS CAGR of 50.70%.
ROIC or balance-sheet flexibility weakening from ROIC of 18.58% and debt-to-equity of 0.79x.
The bottom line
Howmet Aerospace Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
“Segment Adjusted EBITDA for the Engine Products segment increased $174, or 51%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets.”
“Segment Adjusted EBITDA for the Fastening Systems segment increased $51, or 40%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to growth in the commercial aerospace and defense aerospace markets as well as the CAM and Brunner acquisitions.”
“Segment Adjusted EBITDA for the Engineered Structures segment decreased $4, or 6%, in the second quarter of 2026 compared to the second quarter of 2025 due to the disk forging facility divestiture and product rationalization, partially offset by productivity gains.”
“Segment Adjusted EBITDA for the Forged Wheels segment increased $12, or 16%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to cost reductions, including lower net headcount, partially offset by lower volumes in the commercial transportation market.”
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.
