Howmet AerospaceMEX:HWM +1.28%69 Return-on-Tangible-Equity is 248.70% as of Mar. 2026, which is 22% below its 10-year median of 319.83. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,485.95 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 334 Aerospace & Defense companies, Howmet Aerospace ranks better than 90.72% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Howmet Aerospace's annualized net income for the quarter that ended in Mar. 2026 was MXN41,836 Mil. Howmet Aerospace's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN16,822 Mil. Therefore, Howmet Aerospace's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 248.70%.
The historical rank and industry rank for Howmet Aerospace's Return-on-Tangible-Equity or its related term are showing as below:
MEX:HWM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -40.28 Med: 319.83 Max: 1189.87
Current: 264.72
During the past 12 years, Howmet Aerospace's highest Return-on-Tangible-Equity was 1,189.87%. The lowest was -40.28%. And the median was 319.83%.
MEX:HWM's Return-on-Tangible-Equity is ranked better than 90.72% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs MEX:HWM: 264.72
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Howmet Aerospace Return-on-Tangible-Equity Related Terms
Howmet Aerospace Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's Return-on-Tangible-Equity 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 LMT, GD, TDG: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 248.70% mean?
Howmet Aerospace (MEX:HWM) has a Return-on-Tangible-Equity of 248.70% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Howmet Aerospace and its competitors. This is 22% below median its historical median of 319.83. According to the industry distribution chart, Howmet Aerospace ranks #31 out of 334 companies in the Aerospace & Defense industry, placing it in the top 9.3%.
Is Howmet Aerospace's Return-on-Tangible-Equity too high?
Howmet Aerospace's current Return-on-Tangible-Equity of 248.70% is 22% below median its 10-year median of 319.83. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Howmet Aerospace's value of 248.70% is 2934.8% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #31 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to LMT and GD?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #31 out of 334 companies for Return-on-Tangible-Equity. This places Howmet Aerospace in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Howmet Aerospace's value of 248.70% is 2934.8% above this benchmark. While the company's 10-year median is 319.83 vs. the industry median of 8.20, 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 Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current Return-on-Tangible-Equity of 248.70% is 2934.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current Return-on-Tangible-Equity is 248.70%, which is 22% below median its own 10-year median of 319.83. 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 MXN2,485.95, compared to a current price of MXN4,758.20 — trading 91.4% above its estimated fair value. The current Return-on-Tangible-Equity is 248.70%, which is 22% below median its 10-year median of 319.83 and 2934.8% above the Aerospace & Defense industry median of 8.20. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current Return-on-Tangible-Equity is 248.70% 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 MXN4,758.20 is trading 91.4% above its estimated GF Value™ of MXN2,485.95.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for MEX:HWM:
Return-on-Tangible-Equity: 248.70% (22% below median its 10-year median of 319.83)
GF Value™: MXN2,485.95 vs. price of MXN4,758.20 (91.4% above fair value)
Industry Position: 2934.8% above the Aerospace & Defense median (#31 of 334)
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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