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On December 29, 2025 Howmet announced an all-cash agreement to acquire Consolidated Aerospace Manufacturing for $1.8 billion. On December 22, 2025 Jefferies publicly backed the acquisition, estimating a modest EPS lift in 2026 and citing management projections that CAM could contribute roughly $485–$495 million in revenue for FY26.
Technical Analysis
Directional Strength: ADX sits at 25.36, signaling a strong trend strength that supports continuation of the current directional move.
DI+/DI-: DI+ at 30.46 shows an increasing trend (bullish); DI- at 17.60 shows a decreasing trend (bullish), reinforcing the current positive directional bias and supporting near-term upside pressure.
MACD: MACD equals 7.35 and trends increasing, trading above its signal line at 3.94; the MACD crossing above the signal line constitutes a bullish momentum signal that aligns with the ADX/DI directional picture.
MRO: MRO reads 27.15 with a peak-and-reversal pattern, which indicates the price currently sits above a modeled target and introduces downside pressure risk despite other bullish signals.
RSI: RSI at 60.97 and increasing indicates bullish momentum without reaching overbought extremes, compatible with continued trend-following price behavior.
Price vs. Moving Averages & Bands: Last close at $252.55 trades well above the 200-day average ($190.35) and above short-term averages (20-day $222.71, 50-day $212.44), reinforcing the bullish short- and long-term bias; the share price sits above the 1x upper Bollinger band ($240.95) but below the 2x upper band ($259.19), suggesting stretched but not extreme intraday dispersion.
Fundamental Analysis
Earnings and Guidance: Reported EPS of $1.05 beat the estimate of $0.97 by $0.08, an EPS surprise of +8.25%. Management issued 2026 revenue and EPS guidance that implies sequential growth and improved cash generation; management commentary and guidance underpin the acquisition rationale and near-term revenue trajectory.
Profitability: EBIT equals $467.0 million and EBIT margin equals 21.54%, above the industry peer mean of 16.71% and the industry peer median of 11.00%, indicating relative operating efficiency. QoQ EBIT margin fell roughly 15.42%, and YoY EBIT margin declined about 5.71%, reflecting recent margin compression on a short- and medium-term basis despite a higher absolute margin versus peers.
Revenue & Cash Flow: Total revenue equals $2,168.0 million with YoY revenue growth of 23.92% and a very large QoQ growth read of 115.62%, reflecting seasonal and period comparisons; free cash flow equals $530.0 million, but free cash flow yield stands at 0.63%, below the industry peer mean of 1.51%, which reduces valuation support from cash-generation metrics.
Balance Sheet & Leverage: Cash and short-term investments equal $742.0 million; net debt approximates $2.308 billion. Debt-to-EBITDA equals 5.95x, indicating elevated leverage relative to conservative targets; debt-to-assets at 28.74% tracks slightly above the industry peer mean of 27.10% but within the peer range. Current ratio equals 2.13, above the industry peer mean of 1.45, showing ample near-term liquidity.
Returns & Efficiency: Return on equity equals 6.95% and return on assets equals 3.33%, both above the industry peer mean for ROA (2.28%) and near the peer mean for ROE (2.85%), reflecting constructive returns on invested capital despite operating leverage headwinds. Asset turnover equals 0.194, roughly in line with the industry peer mean of 0.186.
Valuation: WMDST values the stock as over-valued. Trailing P/E equals 199.20x and forward P/E about 147.45x, both above the industry peer mean P/E of 98.93; price-to-book equals 15.71x, above the industry peer mean book multiple of 5.11x. Enterprise value ratios also sit materially above peer averages. The combination of strong operating margins and elevated leverage supports a premium multiple, but current multiples exceed levels justified by free cash flow yield and leverage metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-12 |
| NEXT REPORT DATE: | 2026-05-14 |
| CASH FLOW | Begin Period Cash Flow | $ 660.0 M |
| Operating Cash Flow | $ 564.0 M | |
| Capital Expenditures | $ -124.00 M | |
| Change In Working Capital | $ 169.0 M | |
| Dividends Paid | $ -50.00 M | |
| Cash Flow Delta | $ 83.0 M | |
| End Period Cash Flow | $ 743.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.2 B | |
| Forward Revenue | $ 785.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.4 B | |
| Depreciation | $ 73.0 M | |
| Depreciation and Amortization | $ 73.0 M | |
| Research and Development | $ 10.0 M | |
| Total Operating Expenses | $ 1.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 756.0 M | |
| EBITDA | $ 540.0 M | |
| EBIT | $ 467.0 M | |
| Operating Income | $ 562.0 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | $ 37.0 M | |
| Net Interest Income | $ -30.00 M | |
| Income Before Tax | $ 430.0 M | |
| Tax Provision | $ 58.0 M | |
| Tax Rate | 13.488 % | |
| Net Income | $ 372.0 M | |
| Net Income From Continuing Operations | $ 372.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.97 | |
| EPS Actual | $ 1.05 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 8.247 % | |
| Forward EPS | $ 1.34 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.2 B | |
| Intangible Assets | $ 4.5 B | |
| Net Tangible Assets | $ 874.0 M | |
| Total Current Assets | $ 3.8 B | |
| Cash and Short-Term Investments | $ 742.0 M | |
| Cash | $ 742.0 M | |
| Net Receivables | $ 779.0 M | |
| Inventory | $ 1.8 B | |
| Long-Term Investments | $ 126.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 845.0 M | |
| Short-Term Debt | $ 191.0 M | |
| Total Current Liabilities | $ 1.8 B | |
| Net Debt | $ 2.3 B | |
| Total Debt | $ 3.2 B | |
| Total Liabilities | $ 5.8 B | |
| EQUITY | ||
| Total Equity | $ 5.4 B | |
| Retained Earnings | $ 4.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 13.32 | |
| Shares Outstanding | 402.000 M | |
| Revenue Per-Share | $ 5.39 | |
| VALUATION | Market Capitalization | $ 84.1 B |
| Enterprise Value | $ 86.6 B | |
| Enterprise Multiple | 160.281 | |
| Enterprise Multiple QoQ | 23.97 % | |
| Enterprise Multiple YoY | 71.511 % | |
| Enterprise Multiple IPRWA | HWM: 160.281 high: 137.577 mean: 62.022 median: 59.052 low: 14.966 |
|
| EV/R | 39.922 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.088 | |
| Asset To Liability | 1.919 | |
| Debt To Capital | 0.375 | |
| Debt To Assets | 0.287 | |
| Debt To Assets QoQ | -4.165 % | |
| Debt To Assets YoY | 50322.807 % | |
| Debt To Assets IPRWA | high: 0.367 HWM: 0.287 mean: 0.271 median: 0.258 low: 0.003 |
|
| Debt To Equity | 0.6 | |
| Debt To Equity QoQ | -8.893 % | |
| Debt To Equity YoY | 45029.323 % | |
| Debt To Equity IPRWA | high: 1.021 median: 0.606 HWM: 0.6 mean: 0.593 low: 0.003 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 15.707 | |
| Price To Book QoQ | 5.995 % | |
| Price To Book YoY | 47.989 % | |
| Price To Book IPRWA | high: 17.452 HWM: 15.707 mean: 5.111 median: 3.738 low: -8.298 |
|
| Price To Earnings (P/E) | 199.196 | |
| Price To Earnings QoQ | 1.146 % | |
| Price To Earnings YoY | 25.154 % | |
| Price To Earnings IPRWA | high: 235.389 HWM: 199.196 mean: 98.935 median: 84.204 low: 22.275 |
|
| PE/G Ratio | 18.924 | |
| Price To Sales (P/S) | 38.783 | |
| Price To Sales QoQ | 7.452 % | |
| Price To Sales YoY | 53.583 % | |
| Price To Sales IPRWA | HWM: 38.783 high: 36.07 mean: 12.035 median: 7.253 low: 1.653 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 147.454 | |
| Forward PE/G | 14.009 | |
| Forward P/S | 107.039 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -3.231 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.194 | |
| Asset Turnover Ratio QoQ | 3.165 % | |
| Asset Turnover Ratio YoY | 8.086 % | |
| Asset Turnover Ratio IPRWA | high: 0.432 HWM: 0.194 mean: 0.186 median: 0.15 low: 0.049 |
|
| Receivables Turnover | 2.607 | |
| Receivables Turnover Ratio QoQ | 10.584 % | |
| Receivables Turnover Ratio YoY | -0.312 % | |
| Receivables Turnover Ratio IPRWA | high: 9.75 mean: 4.246 median: 3.897 HWM: 2.607 low: 1.399 |
|
| Inventory Turnover | 0.738 | |
| Inventory Turnover Ratio QoQ | 1.214 % | |
| Inventory Turnover Ratio YoY | 7.192 % | |
| Inventory Turnover Ratio IPRWA | high: 6.44 mean: 2.031 median: 1.437 HWM: 0.738 low: 0.265 |
|
| Days Sales Outstanding (DSO) | 34.997 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 102.583 | |
| Cash Conversion Cycle Days QoQ | 1.697 % | |
| Cash Conversion Cycle Days YoY | -0.632 % | |
| Cash Conversion Cycle Days IPRWA | high: 264.697 HWM: 102.583 mean: 100.222 median: 43.483 low: -6.466 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.08 | |
| CapEx To Revenue | -0.057 | |
| CapEx To Depreciation | -1.699 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.2 B | |
| Net Invested Capital | $ 8.4 B | |
| Invested Capital | $ 8.4 B | |
| Net Tangible Assets | $ 874.0 M | |
| Net Working Capital | $ 2.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.419 | |
| Current Ratio | 2.134 | |
| Current Ratio QoQ | -9.324 % | |
| Current Ratio YoY | -1.687 % | |
| Current Ratio IPRWA | high: 5.865 HWM: 2.134 mean: 1.448 median: 1.188 low: 0.914 |
|
| Quick Ratio | 1.09 | |
| Quick Ratio QoQ | -4.225 % | |
| Quick Ratio YoY | 10.911 % | |
| Quick Ratio IPRWA | high: 2.424 HWM: 1.09 mean: 0.912 median: 0.894 low: 0.405 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.95 | |
| Cost Of Debt | 0.975 % | |
| Interest Coverage Ratio | 12.622 | |
| Interest Coverage Ratio QoQ | -12.218 % | |
| Interest Coverage Ratio YoY | 16.867 % | |
| Interest Coverage Ratio IPRWA | high: 20.526 HWM: 12.622 mean: 9.483 median: 7.208 low: -1.736 |
|
| Operating Cash Flow Ratio | 0.318 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 60.232 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 7.44 | |
| Dividend Payout Ratio | 0.134 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.018 % | |
| Revenue Growth | 3.782 % | |
| Revenue Growth QoQ | 115.621 % | |
| Revenue Growth YoY | 23.919 % | |
| Revenue Growth IPRWA | high: 25.079 % median: 7.83 % mean: 6.105 % HWM: 3.782 % low: -6.237 % |
|
| Earnings Growth | 10.526 % | |
| Earnings Growth QoQ | 139.445 % | |
| Earnings Growth YoY | 149.136 % | |
| Earnings Growth IPRWA | high: 47.826 % HWM: 10.526 % mean: -0.672 % median: -8.156 % low: -16.547 % |
|
| MARGINS | ||
| Gross Margin | 34.871 % | |
| Gross Margin QoQ | 11.727 % | |
| Gross Margin YoY | 9.537 % | |
| Gross Margin IPRWA | high: 59.751 % HWM: 34.871 % mean: 20.967 % median: 19.461 % low: 7.566 % |
|
| EBIT Margin | 21.541 % | |
| EBIT Margin QoQ | -15.416 % | |
| EBIT Margin YoY | -5.708 % | |
| EBIT Margin IPRWA | high: 37.49 % HWM: 21.541 % mean: 16.707 % median: 11.003 % low: -6.397 % |
|
| Return On Sales (ROS) | 25.923 % | |
| Return On Sales QoQ | -0.085 % | |
| Return On Sales YoY | 13.473 % | |
| Return On Sales IPRWA | HWM: 25.923 % high: 23.071 % median: 10.71 % mean: 8.328 % low: -6.397 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 530.0 M | |
| Free Cash Flow Yield | 0.63 % | |
| Free Cash Flow Yield QoQ | 12.299 % | |
| Free Cash Flow Yield YoY | -20.455 % | |
| Free Cash Flow Yield IPRWA | high: 3.808 % mean: 1.51 % median: 1.251 % HWM: 0.63 % low: -0.544 % |
|
| Free Cash Growth | 25.296 % | |
| Free Cash Growth QoQ | 10.15 % | |
| Free Cash Growth YoY | -81.028 % | |
| Free Cash Growth IPRWA | high: 322.482 % mean: 39.593 % HWM: 25.296 % median: -17.658 % low: -285.652 % |
|
| Free Cash To Net Income | 1.425 | |
| Cash Flow Margin | 26.015 % | |
| Cash Flow To Earnings | 1.516 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.328 % | |
| Return On Assets QoQ | -3.954 % | |
| Return On Assets YoY | 11.678 % | |
| Return On Assets IPRWA | high: 5.166 % HWM: 3.328 % mean: 2.282 % median: 1.99 % low: -0.304 % |
|
| Return On Capital Employed (ROCE) | 4.964 % | |
| Return On Equity (ROE) | 0.069 | |
| Return On Equity QoQ | -8.167 % | |
| Return On Equity YoY | -0.43 % | |
| Return On Equity IPRWA | high: 0.086 HWM: 0.069 mean: 0.029 median: 0.025 low: -0.048 |
|
| DuPont ROE | 7.126 % | |
| Return On Invested Capital (ROIC) | 4.808 % | |
| Return On Invested Capital QoQ | -3.859 % | |
| Return On Invested Capital YoY | -107.753 % | |
| Return On Invested Capital IPRWA | high: 5.625 % HWM: 4.808 % median: 3.889 % mean: 3.3 % low: -0.522 % |
|