227.52 USD
+0.28 (+0.12%)
At close: Jan 30, 2026
227.52 USD
0 (0%)
After Hours: 1/30/2026, 8:00:02 PM
Overall HON gets a fundamental rating of 6 out of 10. We evaluated HON 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- HON had positive earnings in the past year.
- In the past year HON had a positive cash flow from operations.
- HON had positive earnings in each of the past 5 years.
- Each year in the past 5 years HON had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.57%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- HON's Return On Equity of 36.52% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
- The Return On Invested Capital of HON (9.86%) is better than 85.71% of its industry peers.
- HON had an Average Return On Invested Capital over the past 3 years of 12.23%. This is above the industry average of 7.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 36.52% | ||
| ROIC | 9.86% |
ROA(3y)8.25%
ROA(5y)8.15%
ROE(3y)32.02%
ROE(5y)30.63%
ROIC(3y)12.23%
ROIC(5y)11.94%
1.3 Margins
- HON has a better Profit Margin (15.07%) than 100.00% of its industry peers.
- HON's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 19.89%, HON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- HON's Operating Margin has been stable in the last couple of years.
- HON's Gross Margin of 36.94% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
- In the last couple of years the Gross Margin of HON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 15.07% | ||
| GM | 36.94% |
OM growth 3Y-1.26%
OM growth 5Y0.55%
PM growth 3Y-2.75%
PM growth 5Y-2.4%
GM growth 3Y6%
GM growth 5Y2.48%
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.
- Compared to 1 year ago, HON has less shares outstanding
- HON has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HON is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.23 indicates that HON is not in any danger for bankruptcy at the moment.
- HON's Altman-Z score of 3.23 is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
- HON has a debt to FCF ratio of 6.01. This is a slightly negative value and a sign of low solvency as HON would need 6.01 years to pay back of all of its debts.
- HON has a better Debt to FCF ratio (6.01) than 100.00% of its industry peers.
- HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of HON (2.20) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.24
WACC7.96%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HON should not have too much problems paying its short term obligations.
- HON's Current ratio of 1.36 is in line compared to the rest of the industry. HON outperforms 57.14% of its industry peers.
- HON has a Quick Ratio of 1.04. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.04, HON perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.99% over the past year.
- HON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.49% yearly.
EPS 1Y (TTM)8.99%
EPS 3Y6.71%
EPS 5Y8.49%
EPS Q2Q%4.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.27%
3.2 Future
- The Earnings Per Share is expected to grow by 9.45% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y-0.21%
EPS Next 2Y4.85%
EPS Next 3Y6.75%
EPS Next 5Y9.45%
Revenue Next Year1.29%
Revenue Next 2Y3.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.25%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.32, HON is valued on the expensive side.
- 85.71% of the companies in the same industry are more expensive than HON, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, HON is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 21.37, the valuation of HON can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HON is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. HON is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HON indicates a somewhat cheap valuation: HON is cheaper than 71.43% of the companies listed 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.43 | ||
| EV/EBITDA | 16.66 |
4.3 Compensation for Growth
- HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.51
EPS Next 2Y4.85%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
- HON has a Yearly Dividend Yield of 2.09%.
- HON's Dividend Yield is rather good when compared to the industry average which is at 4.53. HON pays more dividend than 85.71% of the companies in the same industry.
- HON's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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.
- The dividend of HON decreased in the last 3 years.
Dividend Growth(5Y)4.7%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- HON pays out 48.21% of its income as dividend. 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.
DP48.21%
EPS Next 2Y4.85%
EPS Next 3Y6.75%
HONEYWELL INTERNATIONAL INC / HON FAQ
What is the fundamental rating for HON stock?
ChartMill assigns a fundamental rating of 6 / 10 to HON.
What is the valuation status for HON stock?
ChartMill assigns a valuation rating of 5 / 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 21.32 and the Price/Book (PB) ratio is 8.61.
Is the dividend of HONEYWELL INTERNATIONAL INC sustainable?
The dividend rating of HONEYWELL INTERNATIONAL INC (HON) is 6 / 10 and the dividend payout ratio is 48.21%.