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Howmet AerospaceHWM -2.88%82 Cash Ratio is 1.05 as of Mar. 2026, which is 144% above its 10-year median of 0.43. GuruFocus rates HWM with a GF Score™ of 82/100 and a GF Value™ of $140.73 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 355 Aerospace & Defense companies, Howmet Aerospace ranks better than 69.3% on this metric.
Howmet Aerospace has a Cash Ratio of 1.05. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Howmet Aerospace's Cash Ratio or its related term are showing as below:
HWM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.29 Med: 0.43 Max: 1.05
Current: 1.05
During the past 12 years, Howmet Aerospace's highest Cash Ratio was 1.05. The lowest was 0.29. And the median was 0.43.
HWM's Cash Ratio is ranked better than 69.3% of 355
companies
in the Aerospace & Defense industry
Industry Median: 0.45
vs HWM: 1.05
Howmet Aerospace (NYSE:HWM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Howmet Aerospace Cash Ratio Related Terms
Howmet Aerospace Cash Ratio Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Howmet Aerospace's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Howmet Aerospace Cash Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Howmet Aerospace (HWM) has a Cash Ratio of 1.05 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Howmet Aerospace and its competitors. This is 144% above median its historical median of 0.43. Over the past decade, Howmet Aerospace's Cash Ratio has ranged from 0.29 to 1.05. According to the industry distribution chart, Howmet Aerospace ranks #109 out of 355 companies in the Aerospace & Defense industry, placing it in the top 30.7%.
Is Howmet Aerospace's Cash Ratio too high?
Howmet Aerospace's current Cash Ratio of 1.05 is 144% above median its 10-year median of 0.43. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 1.05. The Aerospace & Defense industry median Cash Ratio is 0.45. Howmet Aerospace's value of 1.05 is 133.3% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #109 out of 355 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Howmet Aerospace has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howmet Aerospace's Cash Ratio compare to LMT and GD?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #109 out of 355 companies for Cash Ratio. This puts Howmet Aerospace in the upper half of its industry. The industry median Cash Ratio is 0.45. Howmet Aerospace's value of 1.05 is 133.3% above this benchmark. Historically, Howmet Aerospace's own Cash Ratio has ranged from 0.29 to 1.05 over the past decade. While the company's 10-year median is 0.43 vs. the industry median of 0.45, Howmet Aerospace has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for an Aerospace & Defense company?
The median Cash Ratio among Aerospace & Defense companies is 0.45, based on 355 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current Cash Ratio of 1.05 is 133.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median Cash Ratio is 0.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current Cash Ratio is 1.05, which is 144% above median its own 10-year median of 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howmet Aerospace stock overvalued right now?
Based on GuruFocus' analysis, Howmet Aerospace (HWM) is currently considered Significantly Overvalued. The stock's GF Value™ is $140.73, compared to a current price of $271.19 — trading 92.7% above its estimated fair value. The current Cash Ratio is 1.05, which is 144% above median its 10-year median of 0.43 and 133.3% above the Aerospace & Defense industry median of 0.45. Howmet Aerospace's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Howmet Aerospace (HWM), the current Cash Ratio is 1.05 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Howmet Aerospace (HWM) Overvalued in 2026?
Based on GuruFocus' analysis, Howmet Aerospace stock appears to be overvalued.
The current stock price of $271.19 is trading 92.7% above its estimated GF Value™ of $140.73.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for HWM:
Cash Ratio: 1.05 (144% above median its 10-year median of 0.43)
GF Value™: $140.73 vs. price of $271.19 (92.7% above fair value)
Industry Position: 133.3% above the Aerospace & Defense median (#109 of 355)
No single metric tells the full story. See the HWM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howmet Aerospace Inc offers engineered solutions for the aerospace and transportation industries. The company's products and solutions include investment castings for jet engines and industrial gas turbines; seamless rolled rings for jet engines; fastening systems for aerospace, industrial and commercial transportation applications; forged jet engine components (e.g., jet engine disks); machined and forged aircraft parts; and forged aluminum commercial vehicle wheels, all of which are sold directly to customers or through distributors. It has four reportable segments: Engine Products, which derives key revenue, Fastening Systems, Engineered Structures, and Forged Wheels. Geographically, the company derives maximum revenue from the USA, followed by France, Japan, Germany, and other markets.
82GF Score
Get the complete analysis for HWM
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