Intrinsiqq
Honeywell Aerospace Inc. logoHoneywell Aerospace Inc.HONA
$163.60-2.11%
Honeywell Aerospace Inc. logo

Honeywell Aerospace Inc.

HONA

$163.60

$3.53 (-2.11%)

⊜ Compare
ProfitabilitySolid marginsGrowthSteady growthCash FlowN/AValuationNot cheap
What stands out

18.71% operating margin is respectable but not wide. ROIC at 28.14%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.

What's changing

Revenue grew 12.7%, still solid. Margins contracted 4.0pp, which offsets some of the top-line progress.

What deserves caution

At 29x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 32.74% to 28.14%, capital efficiency is deteriorating.

Valuation context

29.1x earnings, 16.1x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

-18.2%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$51.60B
EPS$5.62
P/E29.11
P/FCF16.12
EV/EBITDA14.08
FCF Yield6.2%
Div. Yield
Net Debt/FCF
52-Week Range
$151.58$269.95

Profitability & Returns

Revenue (FY)

$17.40B

+12.7% YoY

Net Income (FY)

$1.81B

-36.3% YoY

Op. Margin

18.71%

-4.0pp YoY

ROIC

28.14%

-4.6pp YoY

Cash Flow & Balance Sheet

FCF (FY)

$3.20B

+56.1% YoY

Op. Cash Flow (FY)

$3.71B

+46.0% YoY

Net Debt

$58M

Cash & Equiv.

$213M

Continue Research

Is Honeywell Aerospace (HONA) overvalued?

At a P/E of 29.1 and a price-to-free-cash-flow of 16.1, Honeywell Aerospace (HONA) trades below a two-stage DCF intrinsic value of about $512.15 per share, so at $163.60 the stock looks undervalued (213.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Honeywell Aerospace scores 77/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology. This is analysis, not investment advice.

Frequently asked

What is Honeywell Aerospace's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $512.15 per share for HONA, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $384.11. At today's $163.60, that puts the stock about 213.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Honeywell Aerospace a high-quality business?+

Honeywell Aerospace scores 77 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 18.7% operating margin and a 28.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Honeywell Aerospace a good stock to buy right now?+

That depends on valuation and quality together, not either alone. HONA currently trades below its estimated intrinsic value and scores 77/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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