| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 22.5x | 17.3x | Around median | |
Growth | 41 | -1.0% | 7.1% | Around median | |
Quality | 84 | 34.7% | 4.5% | Top tier | |
Safety | 40 | 3.2x | 2.6x | Around median | |
Capital Return | 7 | 0.00% | 0.06% | Bottom tier | |
Momentum | — | — | -1.6% | N/A | |
Sentiment | 85 | — | 3 | Top tier |
The floor: what the company is worth if growth stopped today
56% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Honeywell Aerospace is an independent company specializing in mission-critical aerospace and defense systems, serving commercial aviation, business aviation, defense, and space through avionics, auxiliary power units, navigation and sensing systems, engines and power, safety solutions, and upgrades. Its revenue model relies on selling original equipment for new platforms, then monetizing the installed base through spare parts, repair and overhaul, and software and hardware upgrades; management says its diversification across original equipment, aftermarket services, and defense reduces growth dependence on any single end market.
In the 2nd quarter of fiscal year 2026, revenue reached $4.5 billion, with organic growth of 5%, and gross profit was $1.6 billion, equivalent to a calculated gross margin of approximately 35.6%. Net income was $246 million, representing a calculated net margin of approximately 5.5%, while adjusted operating profit on a standalone-company basis was $1 billion, down 2%, affected by sales mix and a $50 million inventory obsolescence charge; excluding this charge, adjusted operating profit would have grown 3%.
Growth in the 2nd quarter of fiscal year 2026 was distributed across a 6% increase in commercial original equipment sales, 8% growth in commercial aftermarket services, and 3% growth in defense and space. Component shortages led the company to direct a larger share of available production toward original equipment and domestic defense, which have lower margins than aftermarket services and international defense, although this allocation expands the installed base that can generate subsequent revenue from services and upgrades.
The analyst consensus is “Buy,” with an average price target of $222, a low of $175, and a high of $275; the average falls within the 52-week range of $150.03–$297.50 and is approximately 25% below its peak. No P/E multiple is available in the data, so the valuation hinges on the company's ability to achieve adjusted earnings per share of between $7.60 and $7.90 in fiscal year 2026, balanced against the risks of reduced guidance, mix pressure, and the wide range of analyst targets.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The reduction was due to slower improvement in mechanical supplier production, not weak demand, as orders grew 8% during the twelve months ended in the 2nd quarter of fiscal year 2026. The company lowered its organic sales growth outlook to 4%–5%, approximately 3–4 percentage points below the previous outlook at the midpoint. It also reduced its adjusted operating profit outlook by approximately $300 million at the midpoint to $4.35–$4.45 billion, due to the $50 million inventory obsolescence charge and a shift in mix toward lower-margin activities.
Management says approximately 98% of more than 3,000 suppliers are performing well, while the problem is concentrated among approximately 2% of constrained or critical suppliers. Despite this small percentage, delays in components valued at $15–$16 million at a single supplier can prevent the realization of hundreds of millions of dollars in revenue. The company added new sources for more than 50 parts in the first half of fiscal year 2026 and plans to add another 50 in the second half, with investments in multi-sourcing and insourcing amounting to four times the previous year's level.
Automated analysis for informational purposes only — not investment advice.
In July 2026, IndiGo selected avionics and auxiliary power units from Honeywell Aerospace for more than 800 future Airbus A320 family aircraft. Management described the contract as the largest optional equipment win in the company's history, expanding its content on commercial narrow-body aircraft platforms. The contract is consistent with the company winning approximately 60% of the potential optional content value on more than 4,000 narrow-body aircraft during the previous four years.
The company sells spare parts, repair and overhaul services, and upgrades for a large installed base of equipment on aircraft, and commercial aftermarket service sales grew 8% in the 2nd quarter of fiscal year 2026. One example of upgrades is SURF-A, which Aeromexico decided to adopt on more than 100 Boeing 737 aircraft and which can be installed as a software update to existing equipment. However, component shortages will particularly pressure spare parts in the second half of fiscal year 2026, because the company is directing available production toward original equipment programs.
Management views increased supplier and factory production as the main lever for growth and margins in 2027, after production growth remained at 4% in the 2nd quarter of fiscal year 2026. Measures include diversifying sources for 100 parts during the year, doubling investment in supplier tooling between 2025 and 2027, and directing 70% of tooling investments toward constrained castings. If component constraints ease, the company can fulfill a larger portion of its backlog and increase sales of higher-margin aftermarket services and international defense, while achieving this improvement remains dependent on actual execution of the plan.