Honeywell Aerospace Inc Fundamental Analysis (NASDAQ: HONA)
Honeywell Aerospace Inc Fundamental Analysis (NASDAQ: HONA)
Honeywell Aerospace Inc (NASDAQ: HONA) shows moderate financial fundamentals with a PE ratio of 28.15, profit margin of 10.35%, and ROE of -2.21%. The company generates $18.3B in annual revenue with strong year-over-year growth of 12.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -100.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HONA's fundamental strength across five key dimensions:
Efficiency Score
WeakHONA struggles to generate sufficient returns from assets.
Valuation Score
ModerateHONA shows balanced valuation metrics.
Growth Score
ModerateHONA shows steady but slowing expansion.
Financial Health Score
ExcellentHONA maintains a strong and stable balance sheet.
Profitability Score
WeakHONA struggles to sustain strong margins.
Key Financial Metrics
Is HONA Expensive or Cheap?
P/E Ratio
HONA trades at 28.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HONA's PEG of -4.03 indicates potential undervaluation.
Price to Book
The market values Honeywell Aerospace Inc at -20.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.10 times EBITDA. This signals the market has high growth expectations.
How Well Does HONA Make Money?
Net Profit Margin
For every $100 in sales, Honeywell Aerospace Inc keeps $10.35 as profit after all expenses.
Operating Margin
Core operations generate 18.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.21 in profit for every $100 of shareholder equity.
ROA
Honeywell Aerospace Inc generates $8.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Honeywell Aerospace Inc produces operating cash flow of $2.86B, showing steady but balanced cash generation.
Free Cash Flow
Honeywell Aerospace Inc generates strong free cash flow of $2.30B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.24 in free cash annually.
FCF Yield
HONA converts 4.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
-20.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-6.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.21
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How HONA Stacks Against Its Sector Peers
| Metric | HONA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.15 | 27.44 | Neutral |
| ROE | -221.47% | 1185.00% | Weak |
| Net Margin | 10.35% | -2.00% (disorted) | Strong |
| Debt/Equity | -6.16 | 0.85 | Strong (Low Leverage) |
| Current Ratio | 1.64 | 22.12 | Neutral |
| ROA | 8.24% | -1355419.00% (disorted) | Weak |
HONA outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Honeywell Aerospace Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-38.32%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
0.00%
Industry Style: Cyclical, Value, Infrastructure
Declining