Honeywell Aerospace Inc (HONA) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Honeywell Aerospace Inc

Updated on September 28, 2026 · accounts published on August 5, 2026

Reading of September 28, 2026: A cash-rich, lightly indebted business

Honeywell Aerospace trades at a P/E of 67.0 over the last 12 months, 156 % above its sector median, while EPS fell 37 %.

• Is Honeywell Aerospace expensive or cheap? At 67.0 times earnings over the last 12 months, Honeywell Aerospace trades 156 % above its sector's median P/E of 26.1.
• How is the business doing? Revenue grew 13 % over the last 12 months, yet EPS fell 37 % and the operating margin slipped to 16 % from 19 % in fiscal 2025.
• How strong is the balance sheet? Net debt was $2.77 per share in fiscal 2025, just 1.7 % of the current price, and 0.0× EBITDA.
• Does it turn its margin into cash, and what multiple of the cycle does it trade at? Free cash flow was 180 % of net income in fiscal 2025, well above the 85 % bar, but ROIC of 8.1 % misses the 15 % mark.
• What to expect from the next earnings? On August 5, 2026, Honeywell Aerospace reported EPS of $1.87, 10 % below the $2.07 analysts expected.

Is Honeywell Aerospace expensive or cheap?

Over the last 12 months Honeywell Aerospace trades at a P/E of 67.0. That is 156 % above the 26.1 median of 407 industrial companies. An EV/EBITDA of 39.2× points the same way, so the premium also shows up once debt is included. The share price has already fallen hard: it sits 41 % below its 52-week high of $269.95 and not far above its low of $151.58. The fall has not made the stock cheap, because earnings dropped faster than the price. The multiple is high because the profit base shrank, and it will only come down to earth if earnings recover.

How is the business doing?

Sales are heading the right way: revenue rose 13 % year on year over the last 12 months. Profit per share went the other way and fell 37 % over the same period, so the growth is not reaching shareholders. The operating margin was 16 % over the last 12 months against 19 % in fiscal 2025, which means each dollar of sales now keeps less. Net margin stands at 8.5 %. Return on invested capital of 8.1 % is 0.7 points below the sector median of 8.7 %. That is an average result for a stock priced as exceptional. ROE is negative at −16.2 %, which sits oddly next to a positive net margin and should be read with caution.

How strong is the balance sheet?

Debt is not what holds this stock back. In fiscal 2025 debt stood at $3.44 per share against $0.67 in cash. That leaves net debt of $2.77, equal to 1.7 % of today's share price. Net debt to EBITDA of 0.0× is far below the 3× ceiling considered healthy for industrials. The current ratio of 1.53 over the last 12 months means short-term assets cover short-term liabilities about one and a half times. With leverage this low, the balance sheet gives the company room to get through a weaker stretch without strain.

Does it turn its margin into cash, and what multiple of the cycle does it trade at?

Industrials are semi-cyclical, so the order book, the operating margin and cash conversion say more than one year's earnings. Honeywell Aerospace passes on two of these. Its fiscal 2025 operating margin of 19 % clears the 12 % healthy mark, and free cash flow equal to 180 % of net income is more than double the 85 % bar. ROIC of 8.1 % over the last 12 months falls short of the 15 % the sector treats as healthy. Capex was 2.9 % of revenue in fiscal 2025, below the 4 % to 8 % range, which flatters today's cash flow. Paying 67.0 times earnings for that mix assumes a strong upswing.

What to expect from the next earnings?

The last report, on August 5, 2026, was a miss: EPS came in at $1.87 against a consensus of $2.07, a shortfall of 9.7 %. The miss fits the pattern of the last 12 months, when revenue grew 13 % while EPS dropped 37 %. The next report will test whether margins stop shrinking. The figure to watch is the operating margin, 16 % over the last 12 months against 19 % in fiscal 2025. Another miss would leave a P/E of 67.0 with even less support. A move back toward fiscal 2025 margins would start to justify part of the premium.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.