Javed Mirza Honeywell International HON-N BUY Jul 08, 2025

It's done nothing for a long time. The past CEO was good, but is gone. Isn't crazy about their end markets in a declining economy. It can't break out past $180-200.

They had a poor quarter. Period.

Business model has come under pressure, not too many industrial conglomerates left. So much hidden value that can be unlocked over the next 2-3 years. Wonderful aerospace and defense, as well as automation. Separating them makes a lot of sense. Valuation is very attractive. Yield is 2%.

Special situation. Industrial conglomerate with 2 phenomenal businesses, aerospace and automation. Over the next year will split into 2 separate companies, each with its own capital allocation framework; potential to unlock a lot of value of between 50-100%. 

Trades ~20x PE, really good upside. He'd say to hold both those businesses once they come into being next year. Yield is 2.2%.

Announced spinoffs. Lots of costs involved in decentralizing. Quarterly results and guidance were weak. Too early to enter. Not sure she'd want to own all the resulting parts. Needs more visibility.

He owns a lot. Their growth is in aerospace. Nobody wants Boeing, so they'll buy HON. He also likes their chemicals business, though it isn't growth. Their automation is a work in progress.

The company and CEO are doing everything right, but shares are highly undervalued.

HON is a different conversation. Decades ago, we went through the big industrial conglomerate phase. Now we're in the specialization phase. The segments are already functioning well; it doesn't need the overhaul that GE was desperate for.

It was upgraded today. The sum of the parts will be far greater when they break up HON later. A perpetual compounder that you can own long term.