Honeywell AerospaceMEX:HONA -4.02%9 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates MEX:HONA with a GF Score™ of 9/100. The stock has 4 warning signs investors should review. Among 333 Aerospace & Defense companies, Honeywell Aerospace ranks better than 99.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Honeywell Aerospace's annualized net income for the quarter that ended in Mar. 2026 was MXN36,354 Mil. Honeywell Aerospace's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN-50,922 Mil. Therefore, Honeywell Aerospace's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Honeywell Aerospace's Return-on-Tangible-Equity or its related term are showing as below:
MEX:HONA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 52.58 Med: 65.71 Max: 78.84
Current: Negative Tangible Equity
During the past 3 years, Honeywell Aerospace's highest Return-on-Tangible-Equity was 78.84%. The lowest was 52.58%. And the median was 65.71%.
MEX:HONA's Return-on-Tangible-Equity is ranked better than 99.7% of 333
companies
in the Aerospace & Defense industry
Industry Median: 8.29
vs MEX:HONA: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Honeywell Aerospace Return-on-Tangible-Equity Related Terms
Honeywell Aerospace Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Honeywell Aerospace's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:HONA vs : Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Honeywell Aerospace's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Honeywell Aerospace Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Honeywell Aerospace's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Honeywell Aerospace's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Honeywell Aerospace (MEX:HONA) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Honeywell Aerospace and its competitors. Over the past decade, Honeywell Aerospace's Return-on-Tangible-Equity has ranged from 52.58 to 78.84. According to the industry distribution chart, Honeywell Aerospace ranks #1 out of 333 companies in the Aerospace & Defense industry, placing it in the top 0.3%.
Is Honeywell Aerospace's Return-on-Tangible-Equity too high?
Honeywell Aerospace's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 52.58 to a high of 78.84. Based on the distribution chart, Honeywell Aerospace ranks #1 out of 333 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Honeywell Aerospace has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Honeywell Aerospace's Return-on-Tangible-Equity compare to ?
According to the Aerospace & Defense industry distribution chart, Honeywell Aerospace ranks #1 out of 333 companies for Return-on-Tangible-Equity. This places Honeywell Aerospace in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.29. Historically, Honeywell Aerospace's own Return-on-Tangible-Equity has ranged from 52.58 to 78.84 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.29, based on 333 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Honeywell Aerospace and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell Aerospace's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeywell Aerospace stock overvalued right now?
Honeywell Aerospace (MEX:HONA) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Honeywell Aerospace's overall GF Score™ is 9/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Honeywell Aerospace (MEX:HONA), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Honeywell Aerospace Inc operates as an aerospace and defense supplier of systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Its products support original equipment manufacturer (OEM), government, defense prime contractor, and aircraft operator customers across the Commercial Air Transport, Business Aviation, and Defense and Space end markets. The company has three operating segments: Electronic Solutions (ES), Engines & Power Systems (E&PS), and Control Systems (CS ). The majority of revenue is derived from the Electronic Solutions segment, which offers Avionics, Navigation and Sensors, Electromagnetic Defensive Solutions, and Space systems. Geographically, the maximum revenue is generated from the United States.
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