Honeywell Aerospace Inc Fundamental Analysis (NASDAQ: HONA)
Honeywell Aerospace Inc Fundamental Analysis (NASDAQ: HONA)
Honeywell Aerospace Inc (NASDAQ: HONA) shows weak financial fundamentals with a PE ratio of 101.13, profit margin of 8.45%, and ROE of -16.21%. The company generates $8.9B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D 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
WeakHONA faces weak or negative growth trends.
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 101.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HONA's PEG of 1.01 indicates fair valuation.
Price to Book
The market values Honeywell Aerospace Inc at -8.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 27.03 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 $8.45 as profit after all expenses.
Operating Margin
Core operations generate 13.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-16.21 in profit for every $100 of shareholder equity.
ROA
Honeywell Aerospace Inc generates $3.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Honeywell Aerospace Inc generates limited operating cash flow of $346.15M, signaling weaker underlying cash strength.
Free Cash Flow
Honeywell Aerospace Inc generates weak or negative free cash flow of $86.04M, restricting financial flexibility.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
HONA converts 0.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
101.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
-8.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.16
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HONA Stacks Against Its Sector Peers
| Metric | HONA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 101.13 | 30.24 | Worse (Expensive) |
| ROE | -16.21% | 1098.00% | Weak |
| Net Margin | 8.45% | -25209.00% (disorted) | Weak |
| Debt/Equity | -2.78 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 21.68 | Neutral |
| ROA | 3.87% | -1323325.00% (disorted) | Weak |
HONA outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
0.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
0.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
0.00%
Industry Style: Cyclical, Value, Infrastructure
Declining