HON – Market expectations are for record-high Uniform ROA, but management has concerns about margins and organic growth

• Honeywell International Inc. (HON:USA) currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 21.9x Uniform P/E, implying fairly bullish expectations for the firm. However, management has concerns about margins and organic growth
• Specifically, management appears concerned about the sustainability of margin expansion in their Performance Materials and Technologies segment, and segment-wide profit improvement. They may also lack confidence in their ability to maintain organic growth rates through Q4 and in their ability to drive 20% organic growth in their Workflow business