219.63 USD
+4.61 (+2.14%)
We assign a fundamental rating of 6 out of 10 to HON. HON was compared to 7 industry peers in the Industrial Conglomerates industry. HON has an excellent profitability rating, but 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.
- HON had a positive operating cash flow in the past year.
- In the past 5 years HON has always been profitable.
- HON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HON (7.57%) is better than 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.
- HON has a Return On Invested Capital of 9.86%. 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 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
- HON's Profit Margin of 15.07% is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of HON has declined.
- 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.
- 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
- The number of shares outstanding for HON has been reduced compared to 5 years ago.
- The debt/assets ratio for HON is higher compared to a year ago.
2.2 Solvency
- HON has an Altman-Z score of 3.16. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.16, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- 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 Debt to FCF ratio of 6.01. This is amongst the best in 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.
- HON has a better Debt to Equity ratio (2.20) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.26
WACC7.82%
2.3 Liquidity
- HON has a Current Ratio of 1.36. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
- HON has a Current ratio (1.36) which is comparable to the rest of the industry.
- A Quick Ratio of 1.04 indicates that HON should not have too much problems paying its short term obligations.
- HON's Quick ratio of 1.04 is in line compared to the rest of the industry. HON outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.35% over the past year.
- Measured over the past 5 years, HON shows a small growth in Earnings Per Share. The EPS has been growing by 3.71% on average per year.
- Looking at the last year, HON shows a small growth in Revenue. The Revenue has grown by 7.45% in the last year.
- The Revenue has been growing slightly by 0.96% on average over the past years.
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.
- Based on estimates for the next years, HON will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- HON is valuated rather expensively with a Price/Earnings ratio of 20.82.
- Compared to the rest of the industry, the Price/Earnings ratio of HON indicates a rather cheap valuation: HON is cheaper than 100.00% of the companies listed in the same industry.
- HON is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- HON is valuated rather expensively with a Price/Forward Earnings ratio of 20.50.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HON is on the same level as its industry peers.
- HON's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
- HON's Enterprise Value to EBITDA is on the same level as the industry average.
- 85.71% of the companies in the same industry are more expensive than HON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.62 | ||
| EV/EBITDA | 15.86 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HON does not grow enough to justify the current Price/Earnings ratio.
- HON has an outstanding profitability rating, which 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 2.32%. Purely for dividend investing, there may be better candidates out there.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.92, HON pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
- The dividend of HON has a limited annual growth rate of 5.64%.
- 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)5.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 48.21% of the earnings are spent on dividend by HON. 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%
NASDAQ:HON (1/16/2026, 11:59:09 AM)
219.63
+4.61 (+2.14%)
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 Cap139.44B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts73.71
Price Target241.54 (9.98%)
Short Float %1.47%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 | 20.82 | ||
| Fwd PE | 20.5 | ||
| P/S | 3.43 | ||
| P/FCF | 22.62 | ||
| P/OCF | 18.63 | ||
| P/B | 8.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.86 |
EPS(TTM)10.55
EY4.8%
EPS(NY)10.71
Fwd EY4.88%
FCF(TTM)9.71
FCFY4.42%
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
WACC7.82%
ROIC/WACC1.26
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 20.82 and the Price/Book (PB) ratio is 8.31.
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%.