HONEYWELL INTERNATIONAL INC (HON) Stock Fundamental Analysis

NASDAQ:HON • US4385161066

243.59 USD
+2.71 (+1.13%)
At close: Feb 27, 2026
243.38 USD
-0.21 (-0.09%)
After Hours: 2/27/2026, 8:08:48 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

HON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 7 industry peers in the Industrial Conglomerates industry. While HON has a great profitability rating, there are some minor concerns on its financial health. HON has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • HON had positive earnings in the past year.
  • HON had a positive operating cash flow in the past year.
  • In the past 5 years HON has always been profitable.
  • In the past 5 years HON always reported a positive cash flow from operatings.
HON Yearly Net Income VS EBIT VS OCF VS FCFHON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.93%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 33.28%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • HON has a Return On Invested Capital of 11.16%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HON is above the industry average of 8.00%.
Industry RankSector Rank
ROA 6.93%
ROE 33.28%
ROIC 11.16%
ROA(3y)7.91%
ROA(5y)8.06%
ROE(3y)33.2%
ROE(5y)31.84%
ROIC(3y)11.77%
ROIC(5y)12.21%
HON Yearly ROA, ROE, ROICHON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.74%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • HON's Profit Margin has been stable in the last couple of years.
  • HON has a better Operating Margin (19.33%) than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of HON has remained more or less at the same level.
  • HON has a better Gross Margin (36.75%) than 85.71% of its industry peers.
  • HON's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 19.33%
PM (TTM) 12.74%
GM 36.75%
OM growth 3Y0.38%
OM growth 5Y0.62%
PM growth 3Y-0.66%
PM growth 5Y-1.29%
GM growth 3Y4.01%
GM growth 5Y2.86%
HON Yearly Profit, Operating, Gross MarginsHON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HON is creating some value.
  • The number of shares outstanding for HON has been reduced compared to 1 year ago.
  • Compared to 5 years ago, HON has less shares outstanding
  • HON has a worse debt/assets ratio than last year.
HON Yearly Shares OutstandingHON Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
HON Yearly Total Debt VS Total AssetsHON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • The Debt to FCF ratio of HON is 6.38, which is on the high side as it means it would take HON, 6.38 years of fcf income to pay off all of its debts.
  • HON has a Debt to FCF ratio of 6.38. This is amongst the best in the industry. HON outperforms 100.00% of its industry peers.
  • A Debt/Equity ratio of 2.14 is on the high side and indicates that HON has dependencies on debt financing.
  • With a decent Debt to Equity ratio value of 2.14, HON is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 6.38
Altman-Z N/A
ROIC/WACC1.43
WACC7.81%
HON Yearly LT Debt VS Equity VS FCFHON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • HON has a Current Ratio of 1.32. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.32, HON is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • HON has a Quick Ratio of 1.05. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of HON (1.05) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.05
HON Yearly Current Assets VS Current LiabilitesHON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • HON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.99%, which is quite good.
  • Measured over the past years, HON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.49% on average per year.
  • HON shows a small growth in Revenue. In the last year, the Revenue has grown by 7.35%.
  • Measured over the past years, HON shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
EPS 1Y (TTM)8.99%
EPS 3Y6.71%
EPS 5Y8.49%
EPS Q2Q%4.86%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y1.82%
Revenue growth 5Y2.79%
Sales Q2Q%-3.27%

3.2 Future

  • HON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.15% yearly.
  • The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y-0.91%
EPS Next 2Y4.01%
EPS Next 3Y5.87%
EPS Next 5Y6.15%
Revenue Next Year5.34%
Revenue Next 2Y5.52%
Revenue Next 3Y5.46%
Revenue Next 5Y5.46%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HON Yearly Revenue VS EstimatesHON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
HON Yearly EPS VS EstimatesHON Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10

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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.83, the valuation of HON can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of HON is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, HON is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 23.04, the valuation of HON can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HON.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, HON is valued at the same level.
Industry RankSector Rank
PE 22.83
Fwd PE 23.04
HON Price Earnings VS Forward Price EarningsHON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • HON's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HON is cheaper than 71.43% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, HON is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 28.52
EV/EBITDA 18.5
HON Per share dataHON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.69
EPS Next 2Y4.01%
EPS Next 3Y5.87%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.98%, HON has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 4.38, HON pays a better dividend. On top of this HON pays more dividend than 85.71% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, HON has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.98%

5.2 History

  • The dividend of HON has a limited annual growth rate of 4.70%.
  • HON has paid a dividend for at least 10 years, which is a reliable track record.
  • HON has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.7%
Div Incr Years2
Div Non Decr Years2
HON Yearly Dividends per shareHON Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 57.91% of the earnings are spent on dividend by HON. This is a bit on the high side, but may be sustainable.
  • The dividend of HON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.91%
EPS Next 2Y4.01%
EPS Next 3Y5.87%
HON Yearly Income VS Free CF VS DividendHON Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
HON Dividend Payout.HON Dividend Payout, showing the Payout Ratio.HON Dividend Payout.PayoutRetained Earnings

More info and screens

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HONEYWELL INTERNATIONAL INC

NASDAQ:HON (2/27/2026, 8:08:48 PM)

After market: 243.38 -0.21 (-0.09%)

243.59

+2.71 (+1.13%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners80.8%
Inst Owner Change10.1%
Ins Owners0.04%
Ins Owner Change1.11%
Market Cap154.65B
Revenue(TTM)40.34B
Net Income(TTM)5.14B
Analysts73.53
Price Target247.68 (1.68%)
Short Float %1.99%
Short Ratio2.82
Dividend
Industry RankSector Rank
Dividend Yield 1.98%
Yearly Dividend4.63
Dividend Growth(5Y)4.7%
DP57.91%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.89%
Min EPS beat(2)0.97%
Max EPS beat(2)8.81%
EPS beat(4)4
Avg EPS beat(4)6.14%
Min EPS beat(4)0.97%
Max EPS beat(4)12.31%
EPS beat(8)8
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)3.59%
EPS beat(16)14
Avg EPS beat(16)3.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)1.79%
Revenue beat(8)5
Avg Revenue beat(8)0.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.1%
PT rev (1m)3.91%
PT rev (3m)-0.53%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.94%
Valuation
Industry RankSector Rank
PE 22.83
Fwd PE 23.04
P/S 3.83
P/FCF 28.52
P/OCF 24.13
P/B 10.02
P/tB N/A
EV/EBITDA 18.5
EPS(TTM)10.67
EY4.38%
EPS(NY)10.57
Fwd EY4.34%
FCF(TTM)8.54
FCFY3.51%
OCF(TTM)10.09
OCFY4.14%
SpS63.54
BVpS24.32
TBVpS-19.49
PEG (NY)N/A
PEG (5Y)2.69
Graham Number76.41
Profitability
Industry RankSector Rank
ROA 6.93%
ROE 33.28%
ROCE 15.38%
ROIC 11.16%
ROICexc 14.47%
ROICexgc 39.86%
OM 19.33%
PM (TTM) 12.74%
GM 36.75%
FCFM 13.44%
ROA(3y)7.91%
ROA(5y)8.06%
ROE(3y)33.2%
ROE(5y)31.84%
ROIC(3y)11.77%
ROIC(5y)12.21%
ROICexc(3y)14.68%
ROICexc(5y)15.51%
ROICexgc(3y)37.23%
ROICexgc(5y)38.5%
ROCE(3y)15.68%
ROCE(5y)16.22%
ROICexgc growth 3Y-1.4%
ROICexgc growth 5Y1.11%
ROICexc growth 3Y-5.1%
ROICexc growth 5Y-1.76%
OM growth 3Y0.38%
OM growth 5Y0.62%
PM growth 3Y-0.66%
PM growth 5Y-1.29%
GM growth 3Y4.01%
GM growth 5Y2.86%
F-Score6
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 6.38
Debt/EBITDA 3.6
Cap/Depr 71.04%
Cap/Sales 2.44%
Interest Coverage 250
Cash Conversion 69.76%
Profit Quality 105.51%
Current Ratio 1.32
Quick Ratio 1.05
Altman-Z N/A
F-Score6
WACC7.81%
ROIC/WACC1.43
Cap/Depr(3y)82.21%
Cap/Depr(5y)76.69%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.72%
Profit Quality(3y)89.33%
Profit Quality(5y)90.31%
High Growth Momentum
Growth
EPS 1Y (TTM)8.99%
EPS 3Y6.71%
EPS 5Y8.49%
EPS Q2Q%4.86%
EPS Next Y-0.91%
EPS Next 2Y4.01%
EPS Next 3Y5.87%
EPS Next 5Y6.15%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y1.82%
Revenue growth 5Y2.79%
Sales Q2Q%-3.27%
Revenue Next Year5.34%
Revenue Next 2Y5.52%
Revenue Next 3Y5.46%
Revenue Next 5Y5.46%
EBIT growth 1Y-2.33%
EBIT growth 3Y2.21%
EBIT growth 5Y3.42%
EBIT Next Year24.93%
EBIT Next 3Y13.03%
EBIT Next 5Y11.49%
FCF growth 1Y9.91%
FCF growth 3Y6.35%
FCF growth 5Y0.45%
OCF growth 1Y5.1%
OCF growth 3Y6.71%
OCF growth 5Y0.64%

HONEYWELL INTERNATIONAL INC / HON FAQ

What is the fundamental rating for HON stock?

ChartMill assigns a fundamental rating of 5 / 10 to HON.


What is the valuation status for HON stock?

ChartMill assigns a valuation rating of 4 / 10 to HONEYWELL INTERNATIONAL INC (HON). This can be considered as Fairly Valued.


Can you provide the profitability details for HONEYWELL INTERNATIONAL INC?

HONEYWELL INTERNATIONAL INC (HON) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for HON stock?

The Price/Earnings (PE) ratio for HONEYWELL INTERNATIONAL INC (HON) is 22.83 and the Price/Book (PB) ratio is 10.02.


Is the dividend of HONEYWELL INTERNATIONAL INC sustainable?

The dividend rating of HONEYWELL INTERNATIONAL INC (HON) is 5 / 10 and the dividend payout ratio is 57.91%.