Howmet AerospaceMEX:HWM +0.41%69 ROA % is 19.15% as of Mar. 2026, which is 536% above its 10-year median of 3.01. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,459.04 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 356 Aerospace & Defense companies, Howmet Aerospace ranks better than 94.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Howmet Aerospace's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN41,836 Mil.
Howmet Aerospace's average Total Assets over the quarter that ended in Mar. 2026 was MXN218,460 Mil. Therefore, Howmet Aerospace's annualized ROA % for the quarter that ended in Mar. 2026 was 19.15%.
The historical rank and industry rank for Howmet Aerospace's ROA % or its related term are showing as below:
MEX:HWM'
s ROA % Range Over the Past 10 Years
Min: -3.33 Med: 3.01 Max: 15.23
Current: 15.23
During the past 12 years, Howmet Aerospace's highest ROA % was 15.23%. The lowest was -3.33%. And the median was 3.01%.
MEX:HWM's ROA % is ranked better than 94.94% of 356
companies
in the Aerospace & Defense industry
Industry Median: 2.5
vs MEX:HWM: 15.23
Howmet Aerospace (MEX:HWM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Howmet Aerospace ROA % Related Terms
Howmet Aerospace ROA % Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's ROA % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Howmet Aerospace (MEX:HWM) has a ROA % of 19.15% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Howmet Aerospace and its competitors. This is 536% above median its historical median of 3.01. According to the industry distribution chart, Howmet Aerospace ranks #18 out of 356 companies in the Aerospace & Defense industry, placing it in the top 5.1%.
Is Howmet Aerospace's ROA % too high?
Howmet Aerospace's current ROA % of 19.15% is 536% above median its 10-year median of 3.01. The Aerospace & Defense industry median ROA % is 2.50. Howmet Aerospace's value of 19.15% is 666% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #18 out of 356 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 ROA % compare to GD and LMT?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #18 out of 356 companies for ROA %. This places Howmet Aerospace in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.50. Howmet Aerospace's value of 19.15% is 666% above this benchmark. While the company's 10-year median is 3.01 vs. the industry median of 2.50, 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 ROA % for an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.50, based on 356 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current ROA % of 19.15% is 666% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current ROA % is 19.15%, which is 536% above median its own 10-year median of 3.01. 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 MXN2,459.04, compared to a current price of MXN4,875.00 — trading 98.2% above its estimated fair value. The current ROA % is 19.15%, which is 536% above median its 10-year median of 3.01 and 666% above the Aerospace & Defense industry median of 2.50. Howmet Aerospace's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current ROA % is 19.15% 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 98.2% above its estimated GF Value™ of MXN2,459.04.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for MEX:HWM:
ROA %: 19.15% (536% above median its 10-year median of 3.01)
GF Value™: MXN2,459.04 vs. price of MXN4,875.00 (98.2% above fair value)
Industry Position: 666% above the Aerospace & Defense median (#18 of 356)
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
Get the complete analysis for MEX:HWM
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:HWM has been successfully added to your 
