Is Howmet Aerospace Inc. (HWM) Halal?

NYSE Industrials United States $91.7B
✓ HALAL
Confidence: 95/100
Howmet Aerospace Inc. (HWM) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 3.2% against the AAOIFI threshold of 30%, Howmet Aerospace Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 3.2%
/ 30%
0.7%
/ 30%
0.8%
/ 30%
0.24%
/ 5%
✓ HALAL
DJIM 3.2%
/ 33%
0.7%
/ 33%
0.8%
/ 33%
0.24%
/ 5%
✓ HALAL
MSCI 28.7%
/ 33%
6.6%
/ 33%
7.1%
/ 33%
0.24%
/ 5%
✓ HALAL
S&P 3.2%
/ 33%
0.7%
/ 33%
0.8%
/ 33%
0.24%
/ 5%
✓ HALAL
FTSE 28.7%
/ 33%
6.6%
/ 33%
7.1%
/ 50%
0.24%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
61.4
Forward: 41.5
EPS
$3.71
Dividend Yield
20.0%
Payout: 11.9%
P/B Ratio
17.1
EV/EBITDA
39.3
EV: $93.8B
Revenue
$8.3B
Growth: 14.6%
Beta
1.2
Average volatility
Current Ratio
2.1

Profitability

Gross Margin 34.2%
Operating Margin 26.3%
Net Margin 18.3%
Return on Equity (ROE) 30.4%
Return on Assets (ROA) 12.1%

Cash Flow & Balance Sheet

Operating Cash Flow$1.9B
Free Cash Flow$1.4B
Total Debt$3.2B
Debt-to-Equity60.0
Current Ratio2.1
Total Assets$11.2B

Price & Trading

Last Close$230.51
50-Day MA$236.49
200-Day MA$202.22
Avg Volume2.6M
Beta1.2
52-Week Range
$105.04
$267.31

About Howmet Aerospace Inc. (HWM)

CEO
Mr. John C. Plant FCA
Employees
25,430
Sector
Industrials
Industry
Aerospace & Defense
Country
United States
Exchange
NYSE
Market Cap
$91.7B
Currency
USD

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.

Purification Calculator

As a halal stock with 0.24% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Howmet Aerospace Inc. (HWM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Howmet Aerospace Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Howmet Aerospace Inc.'s debt ratio?

Howmet Aerospace Inc.'s debt ratio is 3.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 28.7%.

Does Howmet Aerospace Inc. require dividend purification?

Yes, Howmet Aerospace Inc. has an impermissible income ratio of 0.24%, which means 0.24% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Howmet Aerospace Inc.'s key financial metrics?

Howmet Aerospace Inc. has a market capitalization of $91.7B, trailing P/E ratio of 61.4, and revenue of $8.3B. The company maintains a gross margin of 34.2% and a net margin of 18.3%. Return on equity stands at 30.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.