Honeywell Aerospace HONA
Honeywell Aerospace designs and manufactures aerospace systems and components (engines, avionics, navigation systems) for commercial, military, and defense aircraft, as well as aftermarket services. Honeywell Aerospace shows weak financial health (score 4.81) with a Net Debt/EBITDA of 4.27 and very negative earnings growth (-70.90%), although its forward valuation (P/E 17.47) suggests recovery expectations. Index inclusion and CEO support for the GE-CPP deal provide some optimism, but leverage and persistent supply constraints are significant drags.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Honeywell Aerospace designs and manufactures aerospace systems and components (engines, avionics, navigation systems) for commercial, military, and defense aircraft, as well as aftermarket services. Honeywell Aerospace shows weak financial health (score 4.81) with a Net Debt/EBITDA of 4.27 and very negative earnings growth (-70.90%), although its forward valuation (P/E 17.47) suggests recovery expectations. Index inclusion and CEO support for the GE-CPP deal provide some optimism, but leverage and persistent supply constraints are significant drags.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.2 |
| Quality / Moat | 5.1 |
| Valuation | 3.2 |
| Growth | 2.9 |
| Dividend | 1.5 |
| Momentum | 0.8 |
| Risk & Context | 4.3 |
OVERALL SCORE: 3.5/10
Context and risks
The rise in 10-year Treasury yields (5.17%) affects Honeywell Aerospace due to its high leverage (Net Debt/EBITDA of 4.27) and long-duration valuation (P/E of 48.56). However, its aerospace and defense business profile is less sensitive to rates than other industrial sectors, and the company has no direct exposure to commodities or AI technology.
News considered in the analysis
- Honeywell Aerospace (HONA) Joins Key Index As Its Valuation Story Faces A Market Test — La inclusión en un índice importante puede atraer flujos pasivos, pero el titular también señala que la valoración enfrenta una prueba de mercado, lo que sugiere un efecto mixto.
- Honeywell CEO Calls GE-CPP Deal Positive Amid Persistent Supply Constraints — El CEO ve positivamente el acuerdo GE-CPP, lo que podría implicar sinergias o un mejor entorno competitivo, aunque las restricciones de suministro persistentes limitan el optimismo.
- Honeywell Aerospace (HONA) Joins Major Industry Index And Draws Fresh Investor Focus — Noticia redundante sobre la inclusión en un índice, sin información nueva material sobre los fundamentales.
- Sandisk Joins the S&P 100—Is the Index Flow, or the AI Story, Driving the Stock? — Titular sobre Sandisk, no relacionado con Honeywell Aerospace.
- Sandisk Joins the S&P 100 on Monday -- the Same Day Nike Leaves It — Titular sobre Sandisk y Nike, sin relevancia para Honeywell Aerospace.
Verdict: Hold, awaiting signs of improvement in earnings growth and a reduction in leverage.
Main risk: High leverage (Net Debt/EBITDA of 4.27) combined with rising interest rates could pressure financial health and limit investment capacity.
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