• 简

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Is Honeywell Aerospace (HONA) A Bargain After Its Spin Out And Mixed Earnings?

    Simply Wall St·08/09/2026 02:23:55
    语音播报

    Honeywell Aerospace (HONA) drew fresh attention this week after reporting second quarter 2026 results that paired higher revenue with sharply lower net income, highlighting ongoing supply chain and execution pressures following its recent spin out.

    See our latest analysis for Honeywell Aerospace.

    The latest earnings report and spin out have come against a tougher tape for Honeywell Aerospace, with the share price at US$168.51 after a 1 day share price return of 7.69%. However, the 30 day share price return has fallen 23.66% and the year to date share price return is down 15.75%. This points to fading momentum as investors reassess execution risk alongside the longer term aerospace demand story.

    If you are watching how supply chains, defense spending and next generation systems are shaping opportunities, it can help to look beyond a single stock through a focused screener such as 36 robotics and automation stocks

    After a sharp one day rebound but a weaker recent run, Honeywell Aerospace now sits at an awkward midpoint between execution setbacks and a still solid core business. Does that balance of risk and reward still favour investors at this point?

    Honeywell Aerospace valuation check after the spin out

    On the numbers available today, Honeywell Aerospace looks inexpensive on several fronts. The stock last closed at $168.51, which sits 36.8% below the SWS estimate of future cash flow value at $266.50 and also at a discount to both analyst targets and peer valuation metrics.

    The SWS DCF model arrives at that $266.50 figure by projecting Honeywell Aerospace's future cash flows and then discounting them back to today using a required rate of return. It is a cash flow based view of value rather than a simple comparison of headline earnings or revenue multiples.

    That approach matters for Honeywell Aerospace because the company has reported negative earnings growth over the past year and thinner profit margins at 10.9% compared with 16.8% a year earlier, even though revenue grew 9.2%. A cash flow focused model can separate shorter term margin pressure from the longer term earnings profile that analysts expect to improve at 16.25% per year.

    Alongside the DCF signal, several valuation checks also point to a discounted setup. Honeywell Aerospace is described as good value relative to the US Aerospace & Defense industry and to a peer group when using its P/E of 27.4x, with both industry and peer averages higher at 38.8x and 36.8x respectively, and analysts as a group see scope for the share price to rise by 36.4% from here based on their price target work.

    Look into how the SWS DCF model arrives at its fair value.

    Result: DCF Fair value of $266.50 (UNDERVALUED)

    However, Honeywell Aerospace still faces risks if supply chain pressures persist or if defense and commercial customers delay orders, which could challenge current valuation assumptions.

    Find out about the key risks to this Honeywell Aerospace narrative.

    Another view on Honeywell Aerospace valuation

    The SWS DCF model presents Honeywell Aerospace as undervalued, and the P/E ratio of 27.4x also sits below both the US Aerospace & Defense industry average of 38.8x and the peer average of 36.8x. That gap suggests the stock is priced more cautiously than many rivals. Is that a margin of safety or a sign the market is still uneasy about recent setbacks?

    See what the numbers say about this price — find out in our valuation breakdown.

    NasdaqGS:HONA P/E Ratio as at Aug 2026
    NasdaqGS:HONA P/E Ratio as at Aug 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Honeywell Aerospace for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    With sentiment around Honeywell Aerospace clearly mixed, now is a good time to review both the risks and rewards yourself and then decide how you feel about the balance. To see them side by side and form your own view quickly, start with these 4 key rewards and 4 important warning signs.

    Looking for more investment ideas beyond Honeywell Aerospace?

    If Honeywell Aerospace has sharpened your focus, do not stop there. Broadening your watchlist with other clear ideas can help you spot opportunities sooner.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.