Howmet Aerospace Inc.
Find Ratings ReportsHOWMET AEROSPACE INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. HOWMET AEROSPACE INC has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 12.10% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1731.0 | 1513.0 |
EBITDA ($mil) | 396.0 | 335.0 |
EBIT ($mil) | 328.0 | 268.0 |
Net Income ($mil) | 236.0 | 111.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 610.0 | 792.0 |
Total Assets ($mil) | 10428.0 | 10255.0 |
Total Debt ($mil) | 3835.0 | 4277.0 |
Equity ($mil) | 4037.0 | 3601.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 28.19 | 26.9 |
EBITDA Margin | 22.87 | 22.14 |
Operating Margin | 18.95 | 17.71 |
Sales Turnover | 0.64 | 0.55 |
Return on Assets | 7.33 | 4.57 |
Return on Equity | 18.9 | 12.97 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.86 | 2.12 |
Debt/Capital | 0.49 | 0.54 |
Interest Expense | 52.0 | 57.0 |
Interest Coverage | 6.31 | 4.7 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 409.91 | 412.16 |
Div / share | 0.05 | 0.04 |
EPS | 0.57 | 0.26 |
Book value / share | 9.85 | 8.74 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3146361.0 | 2390609.0 |
BUY. The current P/E ratio indicates a significant premium compared to an average of 23.30 for the Transportation Equipment Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 6.65 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 4.90. The current price-to-sales ratio is well above the S&P 500 average and above the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, HOWMET AEROSPACE INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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HWM 35.79 | Peers 23.30 | HWM 29.80 | Peers 20.65 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. HWM is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HWM is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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HWM 24.53 | Peers 16.58 | HWM 1.77 | Peers 2.67 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. HWM is trading at a significant premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HWM trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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HWM 6.65 | Peers 4.90 | HWM 64.86 | Peers 54.33 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HWM is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. HWM is expected to have an earnings growth rate that exceeds its peers. |
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Price/Sales |
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Sales Growth |
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HWM 4.04 | Peers 3.84 | HWM 17.25 | Peers 19.37 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HWM is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. HWM trails its peers on the basis of sales growth. |
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