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Honeywell Aerospace
(NASDAQ:HONA)
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Rating:66Neutral
Price Target:
$220.00
Action:Reiterated
Date:08/06/26
The score is supported primarily by strong underlying financial strength (minimal leverage and solid free cash flow). It is held back by weak technical momentum (below the 20-day average with negative MACD and sub-40 RSI) and expensive valuation (P/E ~54.7). The latest earnings call was mixed: strong demand and wins, but a meaningful guidance reset tied to supply-chain constraints and margin/cost headwinds.
Positive Factors
Conservative balance sheet
Very low leverage and large equity provide durable financial flexibility: Honeywell Aerospace can fund capex, R&D and multi-sourcing investments without straining liquidity, absorb cyclical downturns, and pursue stand‑alone priorities post‑separation, reducing bankruptcy and refinancing risk over the medium term.
Negative Factors
Supply‑chain constraints limiting output
A concentrated set of supplier bottlenecks has structurally limited production, delaying delivery and compressing near‑term growth. Persistent supplier issues force allocation decisions that can reduce higher‑margin aftermarket sales and slow realization of backlog, creating multi‑quarter execution risk despite demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and large equity provide durable financial flexibility: Honeywell Aerospace can fund capex, R&D and multi-sourcing investments without straining liquidity, absorb cyclical downturns, and pursue stand‑alone priorities post‑separation, reducing bankruptcy and refinancing risk over the medium term.
Read all positive factors
Honeywell Aerospace (HONA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.04B
Dividend YieldN/A
Average Volume (3M)4.12M
Price to Earnings (P/E)64.9
Beta (1Y)-0.07
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees30,000
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares Outstanding316,952,730
10 Day Avg. Volume3,061,545
30 Day Avg. Volume4,124,931
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)7.54
Price to Sales (P/S)3.64
P/FCF Ratio19.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$231.62Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Honeywell Aerospace Business Overview & Revenue Model
Company Description
Honeywell Aerospace, Inc. engages in the provision of aerospace and defense critical systems and technologies. It operates through the following segments: Electronic Solutions, Engines & Power Systems, and Control Systems. The Electronic Solutions...
How the Company Makes Money
Honeywell Aerospace primarily makes money by selling aerospace products and by providing recurring aftermarket services tied to the installed base of its equipment.
1) Original equipment (OEM) sales
- The business generates revenue by supplying c...
Honeywell Aerospace Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
91
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 8.87B | 17.40B | 15.45B |
| Gross Profit | 3.21B | 6.06B | 5.50B |
| EBITDA | 1.66B | 3.59B | 3.85B |
| Net Income | 750.00M | 1.78B | 2.82B |
Balance Sheet | |||
| Total Assets | 19.37B | 17.68B | 16.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 213.00M | 244.00M |
| Total Debt | 15.89B | 271.00M | 237.00M |
| Total Liabilities | 24.99B | 9.19B | 8.02B |
| Stockholders Equity | -5.70B | 8.40B | 8.74B |
Cash Flow | |||
| Free Cash Flow | 86.00M | 3.20B | 2.05B |
| Operating Cash Flow | 346.00M | 3.71B | 2.54B |
| Investing Cash Flow | -221.00M | -525.00M | -2.60B |
| Financing Cash Flow | 744.00M | -3.25B | 164.00M |
Honeywell Aerospace Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $266.25B | 34.46 | 11.79% | 1.42% | 11.84% | 24.93% | |
74 Outperform | $36.90B | 51.40 | 18.30% | 0.04% | 20.69% | 31.56% | |
69 Neutral | $46.63B | 24.94 | 9.41% | 1.99% | 7.29% | 10.75% | |
67 Neutral | $337.64B | 38.05 | 49.03% | 0.51% | 21.69% | 18.42% | |
66 Neutral | $48.04B | 64.87 | -16.21% | ― | ― | ― | |
66 Neutral | $62.22B | 34.19 | -21.02% | 12.64% | 16.64% | 9.48% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
HONA
Honeywell Aerospace
153.75
-46.25
-23.13%
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15.71%
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TDG
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1,126.88
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RTX
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198.12
42.78
27.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.