HONEYWELL INTERNATIONAL INC (HON) Fundamental Analysis & Valuation

NASDAQ:HON • US4385161066

235.29 USD
-3.09 (-1.3%)
At close: Mar 6, 2026
232.098 USD
-3.19 (-1.36%)
Pre-Market: 3/9/2026, 8:00:08 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This HON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, HON scores 5 out of 10 in our fundamental rating. HON was compared to 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. HON Profitability Analysis

1.1 Basic Checks

  • HON had positive earnings in the past year.
  • HON had a positive operating cash flow in the past year.
  • Each year in the past 5 years HON has been profitable.
  • Each year in the past 5 years HON had a positive operating cash flow.
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

  • The Return On Assets of HON (6.93%) is better than 85.71% of its industry peers.
  • The Return On Equity of HON (33.28%) is better than 85.71% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.16%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • HON had an Average Return On Invested Capital over the past 3 years of 11.77%. This 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.
  • Looking at the Operating Margin, with a value of 19.33%, HON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HON has remained more or less at the same level.
  • With an excellent Gross Margin value of 36.75%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • In the last couple of years the Gross Margin of HON has grown nicely.
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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4

2. HON Health Analysis

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
  • Compared to 1 year ago, HON has a worse debt to assets ratio.
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

  • HON has a debt to FCF ratio of 6.38. This is a slightly negative value and a sign of low solvency as HON would need 6.38 years to pay back of all of its debts.
  • HON has a better Debt to FCF ratio (6.38) than 100.00% of its industry peers.
  • HON has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
  • HON's Debt to Equity ratio of 2.14 is fine compared to the rest of the industry. HON outperforms 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 6.38
Altman-Z N/A
ROIC/WACC1.41
WACC7.94%
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.
  • With a Current ratio value of 1.32, HON perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
  • A Quick Ratio of 1.05 indicates that HON should not have too much problems paying its short term obligations.
  • HON has a Quick ratio (1.05) which is in line with its industry peers.
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. HON Growth Analysis

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.
  • The Revenue has been growing slightly by 7.35% in the past year.
  • 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

  • Based on estimates for the next years, HON will show a small growth in Earnings Per Share. The EPS will grow by 6.15% on average per year.
  • HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
EPS Next Y-0.24%
EPS Next 2Y4.35%
EPS Next 3Y5.98%
EPS Next 5Y6.15%
Revenue Next Year5.45%
Revenue Next 2Y5.65%
Revenue Next 3Y5.6%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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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5

4. HON Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.05, which indicates a rather expensive current valuation of HON.
  • Based on the Price/Earnings ratio, HON is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of HON to the average of the S&P500 Index (26.29), we can say HON is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 22.10, HON is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HON is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.60, HON is valued at the same level.
Industry RankSector Rank
PE 22.05
Fwd PE 22.1
HON Price Earnings VS Forward Price EarningsHON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • 85.71% of the companies in the same industry are more expensive than HON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 27.59
EV/EBITDA 17.95
HON Per share dataHON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.6
EPS Next 2Y4.35%
EPS Next 3Y5.98%

More info and screens

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

5

5. HON Dividend Analysis

5.1 Amount

  • HON has a Yearly Dividend Yield of 2.00%.
  • HON's Dividend Yield is a higher than the industry average which is at 4.36.
  • 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 2%

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
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

  • HON pays out 57.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • HON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.91%
EPS Next 2Y4.35%
EPS Next 3Y5.98%
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

Find the best dividend stocksShow peers with best dividend

HON Fundamentals: All Metrics, Ratios and Statistics

HONEYWELL INTERNATIONAL INC

NASDAQ:HON (3/6/2026, 8:24:22 PM)

Premarket: 232.098 -3.19 (-1.36%)

235.29

-3.09 (-1.3%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners80.8%
Inst Owner Change10.09%
Ins Owners0.04%
Ins Owner Change0.98%
Market Cap149.57B
Revenue(TTM)40.34B
Net Income(TTM)5.14B
Analysts74.71
Price Target247.68 (5.27%)
Short Float %1.76%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 2%
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)1.53%
PT rev (3m)0.52%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)0.67%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.92%
Valuation
Industry RankSector Rank
PE 22.05
Fwd PE 22.1
P/S 3.71
P/FCF 27.59
P/OCF 23.34
P/B 9.69
P/tB N/A
EV/EBITDA 17.95
EPS(TTM)10.67
EY4.53%
EPS(NY)10.64
Fwd EY4.52%
FCF(TTM)8.53
FCFY3.63%
OCF(TTM)10.08
OCFY4.28%
SpS63.46
BVpS24.29
TBVpS-19.47
PEG (NY)N/A
PEG (5Y)2.6
Graham Number76.36
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
WACC7.94%
ROIC/WACC1.41
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-0.24%
EPS Next 2Y4.35%
EPS Next 3Y5.98%
EPS Next 5Y6.15%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y1.82%
Revenue growth 5Y2.79%
Sales Q2Q%-3.27%
Revenue Next Year5.45%
Revenue Next 2Y5.65%
Revenue Next 3Y5.6%
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 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 22.05 and the Price/Book (PB) ratio is 9.69.


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%.