Howmet AerospaceWBO:HWM +0.91%81 ROE % is 42.94% as of Mar. 2026, which is 299% above its 10-year median of 10.75. GuruFocus rates WBO:HWM with a GF Score™ of 81/100 and a GF Value™ of €123.38 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 347 Aerospace & Defense companies, Howmet Aerospace ranks better than 93.37% on this metric.
The historical rank and industry rank for Howmet Aerospace's ROE % or its related term are showing as below:
WBO:HWM'
s ROE % Range Over the Past 10 Years
Min: -10.97 Med: 10.75 Max: 33.73
Current: 33.73
During the past 12 years, Howmet Aerospace's highest ROE % was 33.73%. The lowest was -10.97%. And the median was 10.75%.
WBO:HWM's ROE % is ranked better than 93.37% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs WBO:HWM: 33.73
Howmet Aerospace (WBO:HWM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Howmet Aerospace ROE % Related Terms
Howmet Aerospace ROE % Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's ROE % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Howmet Aerospace (WBO:HWM) has a ROE % of 42.94% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Howmet Aerospace and its competitors. This is 299% above median its historical median of 10.75. According to the industry distribution chart, Howmet Aerospace ranks #23 out of 347 companies in the Aerospace & Defense industry, placing it in the top 6.6%.
Is Howmet Aerospace's ROE % too high?
Howmet Aerospace's current ROE % of 42.94% is 299% above median its 10-year median of 10.75. The Aerospace & Defense industry median ROE % is 5.91. Howmet Aerospace's value of 42.94% is 626.6% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #23 out of 347 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 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howmet Aerospace's ROE % compare to GD and LMT?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #23 out of 347 companies for ROE %. This places Howmet Aerospace in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Howmet Aerospace's value of 42.94% is 626.6% above this benchmark. While the company's 10-year median is 10.75 vs. the industry median of 5.91, 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 ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current ROE % of 42.94% is 626.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current ROE % is 42.94%, which is 299% above median its own 10-year median of 10.75. 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 (WBO:HWM) is currently considered Significantly Overvalued. The stock's GF Value™ is €123.38, compared to a current price of €244.60 — trading 98.2% above its estimated fair value. The current ROE % is 42.94%, which is 299% above median its 10-year median of 10.75 and 626.6% above the Aerospace & Defense industry median of 5.91. Howmet Aerospace's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Howmet Aerospace (WBO:HWM), the current ROE % is 42.94% 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 (WBO:HWM) Overvalued in 2026?
Based on GuruFocus' analysis, Howmet Aerospace stock appears to be overvalued.
The current stock price of €244.60 is trading 98.2% above its estimated GF Value™ of €123.38.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for WBO:HWM:
ROE %: 42.94% (299% above median its 10-year median of 10.75)
GF Value™: €123.38 vs. price of €244.60 (98.2% above fair value)
Industry Position: 626.6% above the Aerospace & Defense median (#23 of 347)
No single metric tells the full story. See the WBO: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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