Stock

Honeywell Aerospace

HONA
51
Aerospace & Defense · Industrials
Price
$168.09
+4.98 (+3.05%)
Market Cap
$53.28B
Exchange
NASDAQ
Winston Score
51
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Based on the IPO prospectus (annual filing). This score will refine automatically once the company reports its first quarters.
Data as of Oct 18, 2026 · filings through Jun 27, 2026

§How the score breaks down

Quality
Good
20/30
Growth
Weak
4/20
Cash Flow
Exceptional
9/10
Stability
Strong
7/10
Valuation
Weak
1/10
Ownership
Not counted
n/a
Dividends
Not counted
n/a

41 of 80 counted points = Winston Score 51. Pillars marked n/a do not apply to this company and are left out of the total.

§Winston Score History

The full picture

Honeywell Aerospace makes equipment that goes inside aircraft — things like engines, cockpit controls, navigation systems, and safety sensors. Its customers include commercial airlines, private jet makers, military branches, and spacecraft operators. It is one of the largest suppliers of aerospace components and avionics in the world, with parts flying on thousands of aircraft across nearly every major manufacturer.

The company earns money by selling hardware upfront and then collecting recurring revenue from maintenance contracts, software licenses, and replacement parts over the long life of each aircraft. Honeywell Aerospace operates globally, with significant business in North America, Europe, and Asia, and generates tens of billions in annual revenue. Its deep integration into existing aircraft platforms makes it difficult for airlines and manufacturers to switch suppliers, which is a strong competitive advantage — though slowing commercial aviation demand or defense budget cuts could pressure future growth.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.4% YoY

Slow revenue growth

EPS Growth

-70.7% YoY

Earnings declining

R&D Spend

$677M/ year

↑ Rising (+19% vs prior year)

3.9% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.1B cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Honeywell Aerospace is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 2y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 316.8M (2023) → 316.8M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
34.8%
Modest — 34.8% gross margin
Profit after running costs
Operating Margin
18.7%
Healthy — 18.7% operating margin
Return on the money invested
ROCE
37.6%
Exceptional — 37.6% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+12.7%
—
Fast-growing sales (+12.7% YoY)
Profit growth
EPS YoY
-36.8%
—
Earnings shrinking (-36.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
N/A
—
Data not available

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Cash Flow

Profit that turns into cash
Cash Conversion
208%
Turns 208% of profit into real cash
Spare cash per sale
FCF Margin
18.4%
Converts sales into free cash efficiently (18.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.03
—
Conservative — low debt load (0.03)
Covers its interest
Interest Cover
3.98x
Tight — interest eats into profit (4.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
70.9x
Expensive — P/E 70.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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