Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Howmet Aerospace's 3-Year RORE % for the quarter that ended in Mar. 2026 was 27.65%.
The industry rank for Howmet Aerospace's 3-Year RORE % or its related term are showing as below:
MEX:HWM's 3-Year RORE % is ranked better than 67.72% of 316
companies
in the Aerospace & Defense industry
Industry Median: 9.565
vs MEX:HWM: 27.65
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Howmet Aerospace 3-Year RORE % Related Terms
Howmet Aerospace 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Howmet Aerospace (MEX:HWM) has a 3-Year RORE % of 27.65 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Howmet Aerospace and its competitors. According to the industry distribution chart, Howmet Aerospace ranks #102 out of 316 companies in the Aerospace & Defense industry, placing it in the top 32.3%.
Is Howmet Aerospace's 3-Year RORE % too high?
Howmet Aerospace's current 3-Year RORE % is 27.65. The Aerospace & Defense industry median 3-Year RORE % is 9.57. Howmet Aerospace's value of 27.65 is 189.1% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #102 out of 316 companies in the Aerospace & Defense industry, which is above the industry midpoint. 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 RORE % compare to LMT and GD?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #102 out of 316 companies for 3-Year RORE %. This puts Howmet Aerospace in the upper half of its industry. The industry median 3-Year RORE % is 9.57. Howmet Aerospace's value of 27.65 is 189.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Aerospace & Defense company?
The median 3-Year RORE % among Aerospace & Defense companies is 9.57, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current 3-Year RORE % of 27.65 is 189.1% 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median 3-Year RORE % is 9.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current 3-Year RORE % is 27.65. 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 3-Year RORE % is 27.65 and 189.1% above the Aerospace & Defense industry median of 9.57. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current 3-Year RORE % is 27.65 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:
3-Year RORE %: 27.65
GF Value™: MXN2,426.94 vs. price of MXN4,693.00 (93.4% above fair value)
Industry Position: 189.1% above the Aerospace & Defense median (#102 of 316)
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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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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