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 66.55, 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 46.1/100 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
WeakHONA trades at a premium to fair value.
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 66.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HONA's PEG of 4.08 indicates potential overvaluation.
Price to Book
The market values Honeywell Aerospace Inc at -8.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.18 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 15.70 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
66.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
-8.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.79
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
0.11
vs 25 benchmark
How HONA Stacks Against Its Sector Peers
| Metric | HONA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 66.55 | 28.63 | Worse (Expensive) |
| ROE | -16.21% | 1143.00% | Weak |
| Net Margin | 8.45% | -21350.00% (disorted) | Weak |
| Debt/Equity | -2.79 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 21.75 | Neutral |
| ROA | 3.87% | -1330672.00% (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