Howmet AerospaceMEX:HWM 69 3-Year ROIIC % is 89.32 as of Dec. 2025, which is 21685% above its 10-year median of 0.41. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,513.71 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 320 Aerospace & Defense companies, Howmet Aerospace ranks better than 91.25% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Howmet Aerospace's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 89.32%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Howmet Aerospace's 3-Year ROIIC % or its related term are showing as below:
MEX:HWM's 3-Year ROIIC % is ranked better than 91.25% of 320
companies
in the Aerospace & Defense industry
Industry Median: 3.79
vs MEX:HWM: 89.32
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Howmet Aerospace 3-Year ROIIC % Related Terms
Howmet Aerospace 3-Year ROIIC % Historical Data
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The historical data trend for Howmet Aerospace's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Howmet Aerospace (MEX:HWM) has a 3-Year ROIIC % of 89.32 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Howmet Aerospace and its competitors. This is 21685% above median its historical median of 0.41. According to the industry distribution chart, Howmet Aerospace ranks #28 out of 320 companies in the Aerospace & Defense industry, placing it in the top 8.7%.
Is Howmet Aerospace's 3-Year ROIIC % too high?
Howmet Aerospace's current 3-Year ROIIC % of 89.32 is 21685% above median its 10-year median of 0.41. The Aerospace & Defense industry median 3-Year ROIIC % is 3.79. Howmet Aerospace's value of 89.32 is 2256.7% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #28 out of 320 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 3-Year ROIIC % compare to LMT and GD?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #28 out of 320 companies for 3-Year ROIIC %. This places Howmet Aerospace in the top 9% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.79. Howmet Aerospace's value of 89.32 is 2256.7% above this benchmark. While the company's 10-year median is 0.41 vs. the industry median of 3.79, 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 3-Year ROIIC % for an Aerospace & Defense company?
The median 3-Year ROIIC % among Aerospace & Defense companies is 3.79, based on 320 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current 3-Year ROIIC % of 89.32 is 2256.7% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median 3-Year ROIIC % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current 3-Year ROIIC % is 89.32, which is 21685% above median its own 10-year median of 0.41. 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 MXN2,513.71, compared to a current price of MXN4,693.00 — trading 86.7% above its estimated fair value. The current 3-Year ROIIC % is 89.32, which is 21685% above median its 10-year median of 0.41 and 2256.7% above the Aerospace & Defense industry median of 3.79. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current 3-Year ROIIC % is 89.32 as of Dec. 2025. 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 86.7% above its estimated GF Value™ of MXN2,513.71.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for MEX:HWM:
3-Year ROIIC %: 89.32 (21685% above median its 10-year median of 0.41)
GF Value™: MXN2,513.71 vs. price of MXN4,693.00 (86.7% above fair value)
Industry Position: 2256.7% above the Aerospace & Defense median (#28 of 320)
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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