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Howmet Aerospace has the Financial Strength Rank of 6.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Howmet Aerospace's Interest Coverage for the quarter that ended in Jun. 2026 was 13.94.
Howmet Aerospace's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.46.
As of today, Howmet Aerospace's Altman Z-Score is 11.26.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Howmet Aerospace has the Financial Strength Rank of 6.
Howmet Aerospace Financial Strength Related Terms
HWM vs GD, LMT, NOC: Financial Strength Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Financial Strength distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Howmet Aerospace has a Z-score of 11.26, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 11.26 is strong.
* 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 Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Howmet Aerospace and its competitors. This is 20% above median its historical median of 5.00. Over the past decade, Howmet Aerospace's Financial Strength has ranged from 3.00 to 7.00.
Is Howmet Aerospace's Financial Strength too high?
Howmet Aerospace's current Financial Strength of 6 is 20% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. Overall, Howmet Aerospace has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howmet Aerospace's Financial Strength compare to GD and LMT?
Howmet Aerospace's Financial Strength of 6 can be compared against companies in the Aerospace & Defense industry. Historically, Howmet Aerospace's own Financial Strength has ranged from 3.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Aerospace & Defense company?
A good Financial Strength depends on the Aerospace & Defense industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Howmet Aerospace and its competitors. Howmet Aerospace's current Financial Strength is 6, which is 20% above median its own 10-year median of 5.00. 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 $159.23, compared to a current price of $281.88 — trading 77% above its estimated fair value. The current Financial Strength is 6, which is 20% above median its 10-year median of 5.00. Howmet Aerospace's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Howmet Aerospace (HWM), the current Financial Strength is 6 as of Jun. 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 $281.88 is trading 77% above its estimated GF Value™ of $159.23.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for HWM:
Financial Strength: 6 (20% above median its 10-year median of 5.00)
GF Value™: $159.23 vs. price of $281.88 (77% above fair value)
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.
81GF Score
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