Howmet Aerospace (MEX:HWM) Effective Interest Rate on Debt %: 4.36% (As of Mar. 2026)


MEX:HWM Howmet Aerospace Inc MEX:HWM
69 GF Score
Price MXN4,693.00
GF Value MXN2,422.71
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Howmet Aerospace Effective Interest Rate on Debt %?

Howmet Aerospace MEX:HWM 69 Effective Interest Rate on Debt % is 4.36% as of Mar. 2026. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,422.71 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Howmet Aerospace's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was MXN3,102 Mil. Howmet Aerospace's average total debt for the quarter that ended in Mar. 2026 was MXN71,177 Mil. Therefore, Howmet Aerospace's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.36%.


Howmet Aerospace  (MEX:HWM) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Howmet Aerospace Effective Interest Rate on Debt % Related Terms


Howmet Aerospace Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Howmet Aerospace's Effective Interest Rate on Debt % 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.

Howmet Aerospace Effective Interest Rate on Debt % Chart

Howmet Aerospace Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.51 5.18 4.98 5.52 4.18

Howmet Aerospace Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.44 4.32 4.42 4.47 4.36

MEX:HWM vs LMT, GD, TDG: Effective Interest Rate on Debt % Comparison

For the Aerospace & Defense subindustry, Howmet Aerospace's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Howmet Aerospace's Effective Interest Rate on Debt % falls into.


MEX:HWM
69GF Score
Howmet Aerospace Inc MEX:HWM
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Howmet Aerospace Effective Interest Rate on Debt % Calculation

Howmet Aerospace's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -2718.861/( (72390.135+57852.314)/ 2 )
=-1  *  -2718.861/65121.2245
=4.18 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=71493.34 + 896.795
=72390.135

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=53656.986 + 4195.328
=57852.314

Howmet Aerospace's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -3101.624/( (57852.314+84501.232)/ 2 )
=-1  *  -3101.624/71176.773
=4.36 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=53656.986 + 4195.328
=57852.314

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=73032.435 + 11468.797
=84501.232

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.36% mean?
Howmet Aerospace (MEX:HWM) has a Effective Interest Rate on Debt % of 4.36% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Howmet Aerospace and its competitors.
Is Howmet Aerospace's Effective Interest Rate on Debt % too high?
Howmet Aerospace's current Effective Interest Rate on Debt % is 4.36%. Overall, Howmet Aerospace has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howmet Aerospace's Effective Interest Rate on Debt % compare to LMT and GD?
Howmet Aerospace's Effective Interest Rate on Debt % of 4.36% can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Aerospace & Defense company?
A good Effective Interest Rate on Debt % depends on the Aerospace & Defense industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Howmet Aerospace and its competitors. Howmet Aerospace's current Effective Interest Rate on Debt % is 4.36%. 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 (MEX:HWM) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,422.71, compared to a current price of MXN4,693.00 — trading 93.7% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.36%. Howmet Aerospace's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current Effective Interest Rate on Debt % is 4.36% 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 (MEX:HWM) Overvalued in 2026?

Based on GuruFocus' analysis, Howmet Aerospace stock appears to be overvalued. The current stock price of MXN4,693.00 is trading 93.7% above its estimated GF Value™ of MXN2,422.71. GuruFocus considers Howmet Aerospace to be Significantly Overvalued.

Key valuation signals for MEX:HWM:

  • Effective Interest Rate on Debt %: 4.36%
  • GF Value™: MXN2,422.71 vs. price of MXN4,693.00 (93.7% above fair value)
  • GF Score™: 69/100 with 5 warning signs

No single metric tells the full story. See the MEX:HWM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Howmet Aerospace Business Description

Address 201 Isabella Street, Suite 200, Pittsburgh, PA, USA, 15212-5872
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.
69GF Score

Get the complete analysis for MEX:HWM

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN4,693.00
Price
MXN2,422.71
GF Value