219.39 USD
+4.37 (+2.03%)
194.99 USD
-24.4 (-11.12%)
Taking everything into account, HON scores 6 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
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
- HON has a Return On Assets of 7.57%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
- With an excellent Return On Equity value of 36.52%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 9.86%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- 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.
- HON has a better Operating Margin (19.89%) than 85.71% of its industry peers.
- 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 36.94%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- HON's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HON is still creating some value.
- Compared to 1 year ago, HON has less shares outstanding
- Compared to 5 years ago, HON has less shares outstanding
- HON has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.16 indicates that HON is not in any danger for bankruptcy at the moment.
- HON has a better Altman-Z score (3.16) than 85.71% 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.
- Looking at the Debt to FCF ratio, with a value of 6.01, HON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
- HON has a Debt to Equity ratio of 2.20. This is in the better half of the industry: HON outperforms 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
WACC7.85%
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.
- 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.
- 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
- 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.
- The Revenue has been growing slightly by 7.45% in the past 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
- HON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
- HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HON is valuated rather expensively with a Price/Earnings ratio of 20.80.
- 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.
- The average S&P500 Price/Earnings ratio is at 27.47. HON is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 20.48, which indicates a rather expensive current valuation of HON.
- The rest of the industry has a similar Price/Forward Earnings ratio as HON.
- HON is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 20.48 |
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 | 22.6 | ||
| 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
- With a Yearly Dividend Yield of 2.32%, HON has a reasonable but not impressive dividend return.
- 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 1.89, 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
- 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 2Y4.61%
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 Target241.54 (10.1%)
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 | 20.8 | ||
| 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
WACC7.85%
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 20.8 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%.