Honeywell Aerospace
Honeywell Aerospace Inc. supplies mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. It operates through three segments: Electronic Solutions (ES), Engines & Power Systems (E&PS), and Control Systems (CS). The ES…
Honeywell Aerospace Inc. supplies mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. It operates through three segments: Electronic Solutions (ES), Engines & Power Systems (E&PS), and Control Systems (CS). The ES segment provides avionics, radars, flight management systems, precision inertial navigation systems, and space components; solutions that enable complex sensing protection, targeting, and communications operations in the electromagnetic spectrum; and electronic warfare solutions, as well as solutions that focus on in-flight connectivity, cockpit safety, defense radiofrequency, and counter unmanned aerial systems. It serves OEMs, airlines, defense prime contractors, and space-system integrators, as well as aftermarket maintenance, repair, and overhaul providers. The E&PS segment offers propulsion engines, small and military auxiliary power units (APUs), narrowbody and widebody APUs, electric power systems, and fuel cells and adjacencies. This segment serves aerospace original equipment manufacturers, the U.S. military branches, and scaled aftermarket service providers. The CS segment provides environmental control systems, cabin pressure control systems, thermal management systems, engine start systems, fuel control systems, flight control actuation systems, and wheels and braking systems. The company operates in the United States, Switzerland, Europe, the Middle East, Africa, and internationally. Honeywell Aerospace Inc. was founded in 1914 and is headquartered in Phoenix, Arizona. Honeywell Aerospace Inc. is as a prior subsidiary of Honeywell International Inc.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: USD 79.05–141.97 (median 135.65). The recommended value is 32% above that median, so treat the upside with extra caution.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 8.27% growth, 2.7% terminal growth, and 10% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 8.27%, discount rate 10%, terminal growth 2.70% (sector defaults). See a worked example.
Blended growth assumption: 8.3% (sector default 6.2%, own revenue history 12.3%, analyst revenue consensus 7.3%).
Analyst consensus expects revenue growth of 7.3% a year; the growth assumption used is 8.3%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 179.32 (+19.9%)
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EPS-based Gordon proxy
— USD 79.05 (-47.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 179.32 (+19.9%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 141.97 (-5.1%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 135.65 (-9.3%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 178.03 (+19.0%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 317.07 (+112.0%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 133.11 | -12.4% |
| Base USD 179.32 | 16.6% |
| Bull USD 261.62 | 42.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 149.59 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.7%, discount 10.0%).
Compare: the market implies 3.9% a year, this model assumes 8.3%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.0% | 9.0% | 10.0% | 11.0% | 12.0% |
|---|---|---|---|---|---|
| 4.3% | 209.58 | 176.07 | 151.76 | 133.31 | 118.83 |
| 6.3% | 228.57 | 191.76 | 165.05 | 144.80 | 128.91 |
| 8.3% | 248.97 | 208.60 | 179.32 | 157.12 | 139.71 |
| 10.3% | 270.87 | 226.67 | 194.61 | 170.32 | 151.27 |
| 12.3% | 294.34 | 246.02 | 210.99 | 184.44 | 163.64 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 90 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 4 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 4 of 4 years | 20 / 20 |
| Growth | revenue +10.0% a year | 20 / 20 |
| Balance sheet | net debt 3.7x EBITDA | 10 / 20 |
| Margins | EBITDA margin 21% | 20 / 20 |
Peers in Industrials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| HONA (this company) | USD 149.59 | 16.6% | 26.6 | – | – | 100 |
| EZJ.L easyJet plc | GBP 6.88 | 74.3% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.80 | 64.6% | 7.1 | 2.2 | 0.3% | 100 |
| IAG.L International Consolidated Airlines Group S.A. | GBP 4.37 | 58.9% | 8.0 | 3.5 | 1.8% | 92 |
| TPK.L Travis Perkins plc | GBP 6.54 | 54.7% | – | 0.8 | 2.1% | 46 |
| SRP.L Serco Group plc | GBP 2.77 | 46.2% | 19.7 | 3.3 | 1.5% | 82 |
| DFDS.CO DFDS A/S | DKK 157.30 | 45.9% | – | 0.6 | – | 64 |
| DG.PA VINCI SA | EUR 111.75 | 42.2% | 12.9 | 2.1 | 4.2% | 90 |
| HAFNI.OL Hafnia Limited | NOK 89.00 | 40.8% | 7.2 | 1.8 | 1.2% | 100 |
| Peer median | 9.3 | 1.9 | ||||
Annual financial statement
Saved annual report · Fiscal year 2025 · Yahoo Finance annual statements · period ended 31 Dec 2025
| Revenue | USD 17,404,000,000 |
|---|---|
| EBITDA | USD 3,586,000,000 |
| EBIT | USD 3,174,000,000 |
| Net income | USD 1,780,000,000 |
| Free cash flow | USD 3,201,000,000 |
| Capital expenditures | USD -504,000,000 |
| Debt | USD 271,000,000 |
| Cash | USD 213,000,000 |
| Working capital | USD 1,813,000,000 |
| Shares outstanding | 316,800,000 |
| Reported dividends per share | USD 0.0000 |