Howmet AerospaceMEX:HWM 69 Gross Margin % is 36.92% as of Mar. 2026, which is 36% above its 10-year median of 27.05. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,486.58 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 342 Aerospace & Defense companies, Howmet Aerospace ranks better than 66.37% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Howmet Aerospace had a gross margin of 36.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Howmet Aerospace Gross Margin % Related Terms
Howmet Aerospace Gross Margin % Historical Data
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The historical data trend for Howmet Aerospace's Gross Margin % 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.
MEX:HWM vs GD, LMT, RKLB: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Howmet Aerospace (MEX:HWM) has a Gross Margin % of 36.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Howmet Aerospace and its competitors. This is 36% above median its historical median of 27.05. Over the past decade, Howmet Aerospace's Gross Margin % has ranged from 21.13 to 35.05. According to the industry distribution chart, Howmet Aerospace ranks #115 out of 342 companies in the Aerospace & Defense industry, placing it in the top 33.6%.
Is Howmet Aerospace's Gross Margin % too high?
Howmet Aerospace's current Gross Margin % of 36.92% is 36% above median its 10-year median of 27.05. Over the past 10 years, this metric has ranged from a low of 21.13 to a high of 35.05. The Aerospace & Defense industry median Gross Margin % is 26.65. Howmet Aerospace's value of 36.92% is 38.5% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #115 out of 342 companies in the Aerospace & Defense industry, which is above the industry midpoint. 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 Gross Margin % compare to GD and LMT?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #115 out of 342 companies for Gross Margin %. This puts Howmet Aerospace in the upper half of its industry. The industry median Gross Margin % is 26.65. Howmet Aerospace's value of 36.92% is 38.5% above this benchmark. Historically, Howmet Aerospace's own Gross Margin % has ranged from 21.13 to 35.05 over the past decade. While the company's 10-year median is 27.05 vs. the industry median of 26.65, 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 Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current Gross Margin % of 36.92% is 38.5% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current Gross Margin % is 36.92%, which is 36% above median its own 10-year median of 27.05. 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 MXN2,486.58, compared to a current price of MXN4,875.00 — trading 96.1% above its estimated fair value. The current Gross Margin % is 36.92%, which is 36% above median its 10-year median of 27.05 and 38.5% above the Aerospace & Defense industry median of 26.65. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current Gross Margin % is 36.92% 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 MXN4,875.00 is trading 96.1% above its estimated GF Value™ of MXN2,486.58.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for MEX:HWM:
Gross Margin %: 36.92% (36% above median its 10-year median of 27.05)
GF Value™: MXN2,486.58 vs. price of MXN4,875.00 (96.1% above fair value)
Industry Position: 38.5% above the Aerospace & Defense median (#115 of 342)
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 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
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