Recent News
On December 22, 2025, Howmet announced an all-cash agreement to acquire Consolidated Aerospace Manufacturing for approximately $1.8 billion, citing expected FY2026 revenue of roughly $485–$495 million and an adjusted EBITDA margin above 20% before synergies. On November 3, 2025, the company priced a $500 million debt offering of 4.550% Notes due 2032 to refinance higher-coupon debt and reduce annual interest expense. On January 20, 2026, the Board declared a $0.12 per share common dividend payable February 25, 2026. Market commentary in late January highlighted elevated intraday volume and mixed short-term performance around the company’s January 15–23 trading range.
Technical Analysis
ADX / DI+/DI-: ADX sits at 16.3, indicating no established trend; DI+ at 21.3 shows decreasing, while DI- at 20.13 shows increasing, which together create a bearish directional bias that pressures the price relative to its current over-valued stance.
MACD: MACD shows a peak & reversal; the MACD value (3.66) sits below the signal line (4.29), indicating bearish momentum and a shift away from prior bullish momentum.
MRO (Momentum/Regression Oscillator): MRO sits at 30.1 with a peak & reversal, meaning the price sits above the model target and carries downside potential into the near term against the valuation backdrop.
RSI: RSI at 56.61 with a peak & reversal signals fading upward pressure; the reading remains non-extended but favors momentum contraction consistent with other bearish indicators.
Price vs Moving Averages and Bands: Closing price $215.53 falls below the 20-day average ($218.38) and the 12-day EMA shows a peak & reversal; the 50-day and 200-day averages remain lower at $206.19 and $183.76 respectively. Bollinger bands place the price nearer the middle-to-lower band with short-term support near the SuperTrend lower at $211.93, implying limited immediate upside while downside finds structural support just below the current price.
Fundamental Analysis
Revenue & Profitability: Reported total revenue equals $2,089,000,000 with revenue growth of 1.75%. Operating income registers $542,000,000 and EBIT equals $532,000,000, yielding an EBIT margin of 25.47%, which sits above the industry peer mean of 7.54% and the industry peer median of 12.71%.
Earnings Per Share: Reported EPS reached $0.95 versus an estimate of $0.91, producing an EPS surprise of +4.40% and earnings growth of 4.40% year-over-year on the provided metric.
Cash Generation & Coverage: Operating cash flow reached $531,000,000 with free cash flow of $423,000,000 and free cash flow yield of 0.56%, which lies below the industry peer mean free cash flow yield of 1.30%. Cash and short-term investments total $659,000,000 and the company shows a strong interest coverage ratio of 14.38, indicating ample ability to service interest despite elevated leverage ratios.
Leverage & Working Capital: Total debt measures $3,352,000,000 with net debt at $2,530,000,000 and debt-to-EBITDA about 5.55. The current ratio stands at 2.35 and quick ratio at 1.14, providing liquidity cushion while net working capital equals $2,199,000,000.
Valuation Multiples: P/E at 196.94 and P/B at 14.82 sit well above industry peer mean P/B of 6.70 and peer median of 5.20; enterprise multiple reads 129.29 and EV totals $78,091,080,030. Forward EPS implies a forward P/E near 161.49 and a price-target mean at $230.85. The current valuation as determined by WMDST classifies the stock as over-valued given those elevated multiples relative to cash-flow yield and leverage metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 546.0 M |
| Operating Cash Flow | $ 531.0 M | |
| Capital Expenditures | $ -108.00 M | |
| Change In Working Capital | $ 4.0 M | |
| Dividends Paid | $ -48.00 M | |
| Cash Flow Delta | $ 114.0 M | |
| End Period Cash Flow | $ 660.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.1 B | |
| Forward Revenue | $ 608.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.4 B | |
| Depreciation | $ 72.0 M | |
| Depreciation and Amortization | $ 72.0 M | |
| Research and Development | $ 10.0 M | |
| Total Operating Expenses | $ 1.5 B | |
| PROFITABILITY | ||
| Gross Profit | $ 652.0 M | |
| EBITDA | $ 604.0 M | |
| EBIT | $ 532.0 M | |
| Operating Income | $ 542.0 M | |
| Interest Income | $ 5.0 M | |
| Interest Expense | $ 37.0 M | |
| Net Interest Income | $ -32.00 M | |
| Income Before Tax | $ 495.0 M | |
| Tax Provision | $ 110.0 M | |
| Tax Rate | 22.2 % | |
| Net Income | $ 385.0 M | |
| Net Income From Continuing Operations | $ 385.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.91 | |
| EPS Actual | $ 0.95 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 4.396 % | |
| Forward EPS | $ 1.11 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.2 B | |
| Intangible Assets | $ 4.5 B | |
| Net Tangible Assets | $ 623.0 M | |
| Total Current Assets | $ 3.8 B | |
| Cash and Short-Term Investments | $ 659.0 M | |
| Cash | $ 659.0 M | |
| Net Receivables | $ 884.0 M | |
| Inventory | $ 2.0 B | |
| Long-Term Investments | $ 88.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 957.0 M | |
| Short-Term Debt | $ 1.0 M | |
| Total Current Liabilities | $ 1.6 B | |
| Net Debt | $ 2.5 B | |
| Total Debt | $ 3.4 B | |
| Total Liabilities | $ 6.0 B | |
| EQUITY | ||
| Total Equity | $ 5.1 B | |
| Retained Earnings | $ 3.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 12.63 | |
| Shares Outstanding | 403.000 M | |
| Revenue Per-Share | $ 5.18 | |
| VALUATION | Market Capitalization | $ 75.4 B |
| Enterprise Value | $ 78.1 B | |
| Enterprise Multiple | 129.29 | |
| Enterprise Multiple QoQ | 2.251 % | |
| Enterprise Multiple YoY | 53.879 % | |
| Enterprise Multiple IPRWA | high: 142.731 HWM: 129.29 median: 53.347 mean: 44.201 low: -131.759 |
|
| EV/R | 37.382 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.197 | |
| Asset To Liability | 1.852 | |
| Debt To Capital | 0.397 | |
| Debt To Assets | 0.3 | |
| Debt To Assets QoQ | 1.678 % | |
| Debt To Assets YoY | -6.707 % | |
| Debt To Assets IPRWA | high: 0.899 HWM: 0.3 mean: 0.293 median: 0.286 low: 0.0 |
|
| Debt To Equity | 0.659 | |
| Debt To Equity QoQ | 0.843 % | |
| Debt To Equity YoY | 299359.091 % | |
| Debt To Equity IPRWA | high: 2.207 mean: 0.813 HWM: 0.659 median: 0.6 low: -1.213 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 14.819 | |
| Price To Book QoQ | 5.395 % | |
| Price To Book YoY | 66.334 % | |
| Price To Book IPRWA | high: 17.705 HWM: 14.819 mean: 6.699 median: 5.202 low: -3.162 |
|
| Price To Earnings (P/E) | 196.939 | |
| Price To Earnings QoQ | 4.546 % | |
| Price To Earnings YoY | 43.611 % | |
| Price To Earnings IPRWA | high: 243.643 HWM: 196.939 median: 75.359 mean: 73.723 low: -135.508 |
|
| PE/G Ratio | 44.8 | |
| Price To Sales (P/S) | 36.093 | |
| Price To Sales QoQ | 5.676 % | |
| Price To Sales YoY | 67.133 % | |
| Price To Sales IPRWA | high: 70.781 HWM: 36.093 mean: 11.112 median: 9.371 low: 1.449 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 161.492 | |
| Forward PE/G | 36.736 | |
| Forward P/S | 123.875 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.812 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.188 | |
| Asset Turnover Ratio QoQ | -0.101 % | |
| Asset Turnover Ratio YoY | 8.79 % | |
| Asset Turnover Ratio IPRWA | high: 0.384 HWM: 0.188 mean: 0.172 median: 0.139 low: 0.0 |
|
| Receivables Turnover | 2.358 | |
| Receivables Turnover Ratio QoQ | 1.983 % | |
| Receivables Turnover Ratio YoY | -3.247 % | |
| Receivables Turnover Ratio IPRWA | high: 7.156 mean: 3.454 median: 2.566 HWM: 2.358 low: 0.616 |
|
| Inventory Turnover | 0.73 | |
| Inventory Turnover Ratio QoQ | -1.647 % | |
| Inventory Turnover Ratio YoY | 9.182 % | |
| Inventory Turnover Ratio IPRWA | high: 5.174 mean: 1.717 median: 1.095 HWM: 0.73 low: 0.036 |
|
| Days Sales Outstanding (DSO) | 38.702 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 100.871 | |
| Cash Conversion Cycle Days QoQ | -0.597 % | |
| Cash Conversion Cycle Days YoY | -2.497 % | |
| Cash Conversion Cycle Days IPRWA | high: 356.665 mean: 107.164 HWM: 100.871 median: 75.673 low: -64.961 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.95 | |
| CapEx To Revenue | -0.052 | |
| CapEx To Depreciation | -1.5 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.3 B | |
| Net Invested Capital | $ 8.3 B | |
| Invested Capital | $ 8.3 B | |
| Net Tangible Assets | $ 623.0 M | |
| Net Working Capital | $ 2.2 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.406 | |
| Current Ratio | 2.353 | |
| Current Ratio QoQ | 1.927 % | |
| Current Ratio YoY | 5.274 % | |
| Current Ratio IPRWA | high: 9.786 HWM: 2.353 mean: 1.51 median: 1.182 low: 0.407 |
|
| Quick Ratio | 1.138 | |
| Quick Ratio QoQ | 5.235 % | |
| Quick Ratio YoY | 15.925 % | |
| Quick Ratio IPRWA | high: 5.116 HWM: 1.138 mean: 1.028 median: 0.949 low: 0.303 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.55 | |
| Cost Of Debt | 0.871 % | |
| Interest Coverage Ratio | 14.378 | |
| Interest Coverage Ratio QoQ | 7.767 % | |
| Interest Coverage Ratio YoY | 58.957 % | |
| Interest Coverage Ratio IPRWA | high: 31.057 HWM: 14.378 median: 6.813 mean: 3.288 low: -123.353 |
|
| Operating Cash Flow Ratio | 0.233 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 63.156 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 8.021 | |
| Dividend Payout Ratio | 0.125 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.186 % | |
| Revenue Growth | 1.754 % | |
| Revenue Growth QoQ | -69.314 % | |
| Revenue Growth YoY | -173.266 % | |
| Revenue Growth IPRWA | high: 67.474 % mean: 3.302 % HWM: 1.754 % median: 1.704 % low: -46.934 % |
|
| Earnings Growth | 4.396 % | |
| Earnings Growth QoQ | -24.389 % | |
| Earnings Growth YoY | -26.365 % | |
| Earnings Growth IPRWA | high: 140.0 % HWM: 4.396 % median: 3.715 % mean: 1.923 % low: -116.667 % |
|
| MARGINS | ||
| Gross Margin | 31.211 % | |
| Gross Margin QoQ | 3.516 % | |
| Gross Margin YoY | -1.595 % | |
| Gross Margin IPRWA | high: 100.0 % HWM: 31.211 % median: 20.375 % mean: 19.063 % low: -39.082 % |
|
| EBIT Margin | 25.467 % | |
| EBIT Margin QoQ | 3.122 % | |
| EBIT Margin YoY | 17.419 % | |
| EBIT Margin IPRWA | high: 58.23 % HWM: 25.467 % median: 12.705 % mean: 7.542 % low: -155.296 % |
|
| Return On Sales (ROS) | 25.945 % | |
| Return On Sales QoQ | 3.627 % | |
| Return On Sales YoY | 19.623 % | |
| Return On Sales IPRWA | high: 57.493 % HWM: 25.945 % median: 11.15 % mean: 5.509 % low: -166.148 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 423.0 M | |
| Free Cash Flow Yield | 0.561 % | |
| Free Cash Flow Yield QoQ | 14.257 % | |
| Free Cash Flow Yield YoY | 37.164 % | |
| Free Cash Flow Yield IPRWA | high: 3.722 % median: 1.51 % mean: 1.295 % HWM: 0.561 % low: -6.506 % |
|
| Free Cash Growth | 22.965 % | |
| Free Cash Growth QoQ | -85.346 % | |
| Free Cash Growth YoY | -143.633 % | |
| Free Cash Growth IPRWA | high: 251.349 % median: 28.261 % HWM: 22.965 % mean: 0.393 % low: -307.394 % |
|
| Free Cash To Net Income | 1.099 | |
| Cash Flow Margin | 18.143 % | |
| Cash Flow To Earnings | 0.984 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.465 % | |
| Return On Assets QoQ | -7.129 % | |
| Return On Assets YoY | 10.809 % | |
| Return On Assets IPRWA | high: 11.701 % HWM: 3.465 % median: 1.191 % mean: 0.744 % low: -17.358 % |
|
| Return On Capital Employed (ROCE) | 5.57 % | |
| Return On Equity (ROE) | 0.076 | |
| Return On Equity QoQ | -7.279 % | |
| Return On Equity YoY | 1.38 % | |
| Return On Equity IPRWA | high: 0.262 HWM: 0.076 mean: 0.07 median: 0.042 low: -0.285 |
|
| DuPont ROE | 7.643 % | |
| Return On Invested Capital (ROIC) | 5.001 % | |
| Return On Invested Capital QoQ | -6.278 % | |
| Return On Invested Capital YoY | -106.35 % | |
| Return On Invested Capital IPRWA | high: 9.81 % HWM: 5.001 % median: 2.293 % mean: 1.214 % low: -16.009 % |
|