219.39 USD
+4.37 (+2.03%)
194.99 USD
-24.4 (-11.12%)
HON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 7 industry peers in the Industrial Conglomerates industry. While HON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HON has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HON was profitable.
- In the past year HON had a positive cash flow from operations.
- Each year in the past 5 years HON has been profitable.
- In the past 5 years HON always reported a positive cash flow from operatings.
1.2 Ratios
- HON's Return On Assets of 7.57% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
- HON has a Return On Equity of 36.52%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.86%, HON belongs to the top 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 12.23%. This is above the industry average of 7.93%.
| 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
- With an excellent Profit Margin value of 15.07%, HON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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 85.71% 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.
- HON has a Gross Margin of 36.94%. This is amongst the best in 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
- HON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for HON has been reduced compared to 1 year ago.
- HON has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HON has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.16 indicates that HON is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HON (3.16) is better than 85.71% of its industry peers.
- The Debt to FCF ratio of HON is 6.01, which is on the high side as it means it would take HON, 6.01 years of fcf income to pay off all of its debts.
- HON's Debt to FCF ratio of 6.01 is amongst the best of the industry. HON outperforms 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.
- Looking at the Debt to Equity ratio, with a value of 2.20, HON is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.25
WACC7.91%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that HON should not have too much problems paying its short term obligations.
- HON has a Current ratio of 1.36. This is comparable 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
- HON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.35%.
- The Earnings Per Share has been growing slightly by 3.71% on average over the past years.
- Looking at the last year, HON shows a small growth in Revenue. The Revenue has grown by 7.45% in the last year.
- HON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.96% yearly.
EPS 1Y (TTM)6.35%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%9.3%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
3.2 Future
- The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue Next Year6.54%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y4.94%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.80, the valuation of HON can be described as rather expensive.
- 100.00% of the companies in the same industry are more expensive than HON, based on the Price/Earnings ratio.
- HON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.47.
- Based on the Price/Forward Earnings ratio of 20.48, 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.
- When comparing the Price/Forward Earnings ratio of HON to the average of the S&P500 Index (24.26), we can say HON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HON.
- Based on the Price/Free Cash Flow ratio, HON is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.6 | ||
| EV/EBITDA | 15.86 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)5.61
EPS Next 2Y4.61%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
- HON has a Yearly Dividend Yield of 2.21%.
- HON's Dividend Yield is rather good when compared to the industry average which is at 4.50. 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
- The dividend of HON has a limited annual growth rate of 5.64%.
- HON has been paying a dividend for at least 10 years, so it has a reliable track record.
- HON has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.64%
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.
- HON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.21%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
219.39
+4.37 (+2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)01-29 2026-01-29
Inst Owners80.8%
Inst Owner Change0.81%
Ins Owners0.04%
Ins Owner Change0.14%
Market Cap139.29B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts73.71
Price Target238.36 (8.65%)
Short Float %1.47%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend4.46
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.64%
Min EPS beat(2)2.48%
Max EPS beat(2)8.81%
EPS beat(4)4
Avg EPS beat(4)7.24%
Min EPS beat(4)2.48%
Max EPS beat(4)12.31%
EPS beat(8)7
Avg EPS beat(8)4.36%
EPS beat(12)10
Avg EPS beat(12)3.47%
EPS beat(16)13
Avg EPS beat(16)3.05%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)1.59%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.59%
Min Revenue beat(4)1.37%
Max Revenue beat(4)1.79%
Revenue beat(8)5
Avg Revenue beat(8)0.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)-0.09%
PT rev (1m)-1.97%
PT rev (3m)-6.84%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-6.36%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 20.48 | ||
| P/S | 3.42 | ||
| P/FCF | 22.6 | ||
| P/OCF | 18.61 | ||
| P/B | 8.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.86 |
EPS(TTM)10.55
EY4.81%
EPS(NY)10.71
Fwd EY4.88%
FCF(TTM)9.71
FCFY4.43%
OCF(TTM)11.79
OCFY5.37%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)2.11
PEG (5Y)5.61
Graham Number79.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 36.52% | ||
| ROCE | 13.88% | ||
| ROIC | 9.86% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 30.7% | ||
| OM | 19.89% | ||
| PM (TTM) | 15.07% | ||
| GM | 36.94% | ||
| FCFM | 15.16% |
ROA(3y)8.25%
ROA(5y)8.15%
ROE(3y)32.02%
ROE(5y)30.63%
ROIC(3y)12.23%
ROIC(5y)11.94%
ROICexc(3y)15.24%
ROICexc(5y)15.49%
ROICexgc(3y)37.17%
ROICexgc(5y)37.38%
ROCE(3y)16.37%
ROCE(5y)16.08%
ROICexgc growth 3Y-3.6%
ROICexgc growth 5Y-3.76%
ROICexc growth 3Y-5.53%
ROICexc growth 5Y-5.14%
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%
F-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 85.12% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | 100.57% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.16 |
F-Score4
WACC7.91%
ROIC/WACC1.25
Cap/Depr(3y)79.74%
Cap/Depr(5y)80.57%
Cap/Sales(3y)2.67%
Cap/Sales(5y)2.68%
Profit Quality(3y)84.42%
Profit Quality(5y)91.4%
High Growth Momentum
Growth
EPS 1Y (TTM)6.35%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%9.3%
EPS Next Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.54%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year20.52%
EBIT Next 3Y9.51%
EBIT Next 5Y10.87%
FCF growth 1Y60.73%
FCF growth 3Y-1.38%
FCF growth 5Y-4.03%
OCF growth 1Y57.55%
OCF growth 3Y0.32%
OCF growth 5Y-2.44%
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 20.8 and the Price/Book (PB) ratio is 8.3.
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%.