Honeywell Aerospace Inc (HONA)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and then ask what I am paying for it. Honeywell Aerospace is a large aerospace supplier—30,000 employees and a $53.5B market cap—serving commercial aviation, defense, business aviation, and space. The franchise may have switching costs, but these figures do not prove a wide moat. In fiscal Q2 2026, the quarter ended 2026-06-27, revenue was $4.5B and net income was $246.0M. In fiscal Q2 2025, the quarter ended 2025-06-28, revenue was $4.3B and net income was $844.0M, so sales edged up while profit fell hard. The latest quarterly net margin was 5.44%, which is thin for a technology aerospace supplier. TTM free cash flow was $877.0M, positive but only a 1.6% FCF yield against the $53.5B market cap. At the 2026-10-26 close of $168.64, FairStock shows a P/E of 51.41, EV/EBITDA of 17.50, Piotroski F-Score of 4/9, Altman Z-Score of 1.80, and a FairStock Score of 20/100. That is not a bargain by Graham standards. No dividend is paid, and the computed Lynch category is none because only 0 year(s) of filed results are available; that argues for caution, not comfort. I would want a margin of safety and evidence that margins and cash returns are durable before paying a high multiple for declining profit.

In plain English: Honeywell Aerospace makes aircraft parts and systems for commercial, military, business aviation, and space customers. In the latest quarter, sales edged up but profit fell sharply, so the business looks weaker than its sales suggest. The stock price looks expensive compared with the company's earnings and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer