Howmet AerospaceMEX:HWM 69 ROC (Joel Greenblatt) % is 71.63% as of Mar. 2026, which is 349% above its 10-year median of 15.94. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,426.94 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 355 Aerospace & Defense companies, Howmet Aerospace ranks better than 87.32% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Howmet Aerospace's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 71.63%.
The historical rank and industry rank for Howmet Aerospace's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:HWM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 11.04 Med: 15.94 Max: 54.15
Current: 54.15
During the past 12 years, Howmet Aerospace's highest ROC (Joel Greenblatt) % was 54.15%. The lowest was 11.04%. And the median was 15.94%.
MEX:HWM's ROC (Joel Greenblatt) % is ranked better than 87.32% of 355
companies
in the Aerospace & Defense industry
Industry Median: 10.76
vs MEX:HWM: 54.15
Howmet Aerospace's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 30.60% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Howmet Aerospace ROC (Joel Greenblatt) % Related Terms
Howmet Aerospace ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 71.63% mean?
Howmet Aerospace (MEX:HWM) has a ROC (Joel Greenblatt) % of 71.63% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Howmet Aerospace and its competitors. This is 349% above median its historical median of 15.94. Over the past decade, Howmet Aerospace's ROC (Joel Greenblatt) % has ranged from 11.04 to 54.15. According to the industry distribution chart, Howmet Aerospace ranks #45 out of 355 companies in the Aerospace & Defense industry, placing it in the top 12.7%.
Is Howmet Aerospace's ROC (Joel Greenblatt) % too high?
Howmet Aerospace's current ROC (Joel Greenblatt) % of 71.63% is 349% above median its 10-year median of 15.94. Over the past 10 years, this metric has ranged from a low of 11.04 to a high of 54.15. The Aerospace & Defense industry median ROC (Joel Greenblatt) % is 10.76. Howmet Aerospace's value of 71.63% is 565.7% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #45 out of 355 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 ROC (Joel Greenblatt) % compare to LMT and GD?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #45 out of 355 companies for ROC (Joel Greenblatt) %. This places Howmet Aerospace in the top 13% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.76. Howmet Aerospace's value of 71.63% is 565.7% above this benchmark. Historically, Howmet Aerospace's own ROC (Joel Greenblatt) % has ranged from 11.04 to 54.15 over the past decade. While the company's 10-year median is 15.94 vs. the industry median of 10.76, 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 ROC (Joel Greenblatt) % for an Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.76, based on 355 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current ROC (Joel Greenblatt) % of 71.63% is 565.7% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current ROC (Joel Greenblatt) % is 71.63%, which is 349% above median its own 10-year median of 15.94. 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 MXN2,426.94, compared to a current price of MXN4,693.00 — trading 93.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 71.63%, which is 349% above median its 10-year median of 15.94 and 565.7% above the Aerospace & Defense industry median of 10.76. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current ROC (Joel Greenblatt) % is 71.63% 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 93.4% above its estimated GF Value™ of MXN2,426.94.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for MEX:HWM:
ROC (Joel Greenblatt) %: 71.63% (349% above median its 10-year median of 15.94)
GF Value™: MXN2,426.94 vs. price of MXN4,693.00 (93.4% above fair value)
Industry Position: 565.7% above the Aerospace & Defense median (#45 of 355)
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
ROC (Joel Greenblatt) % 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 
