Howmet Aerospace Inc. — Earnings Quality Grade F
HWM · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 34 days, change +1 days YoY
AR growth 13.1% vs revenue growth 11.1%
Revenue 11.1%, CFFO 45.1%. Cash follows revenue
Expense Quality
Inventory 0.5% vs COGS 6.1%. Normal
CapEx growth 41.1% is >2x revenue growth 11.1%
SG&A/Gross Profit = 13.7%, excellent (<30%)
Gross margin rose +3.1pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 1.25. Profits backed by cash
FCF $1.4B, FCF/NI = 0.95
Accruals ratio = -3.4%. Low accruals
Cash $0.7B covers only 23% of debt $3.2B
Balance Sheet Health
Goodwill+Intangibles $4.5B = 84% of equity. Over 50%
Debt/EBITDA = 1.4x. Healthy
Other assets grew 31.2% vs revenue 11.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -2.54 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09