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
HON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 7 industry peers in the Industrial Conglomerates industry. HON scores excellent on profitability, 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.
- In the past year HON had a positive cash flow from operations.
- In the past 5 years HON has always been profitable.
- In the past 5 years HON always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 6.93%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- The Return On Equity of HON (33.28%) is better than 85.71% of its industry peers.
- HON's Return On Invested Capital of 11.16% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
- HON had an Average Return On Invested Capital over the past 3 years of 11.77%. This is above the industry average of 7.98%.
| Industry Rank | Sector 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%
1.3 Margins
- HON has a Profit Margin of 12.74%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
- In the last couple of years the Profit Margin of HON has remained more or less at the same level.
- HON's Operating Margin of 19.33% is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of HON has remained more or less at the same level.
- HON has a better Gross Margin (36.75%) than 85.71% of its industry peers.
- HON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
- The number of shares outstanding for HON has been reduced compared to 1 year ago.
- The number of shares outstanding for HON has been reduced compared to 5 years ago.
- Compared to 1 year ago, HON has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of HON is 6.38, which is on the high side as it means it would take HON, 6.38 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HON (6.38) is better than 100.00% of its industry peers.
- A Debt/Equity ratio of 2.14 is on the high side and indicates that HON has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.14, 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 | 2.14 | ||
| Debt/FCF | 6.38 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC8%
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.
- The Current ratio of HON (1.32) is comparable to the rest of the industry.
- HON has a Quick Ratio of 1.05. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of HON (1.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.05 |
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.
- Looking at the last year, HON shows a small growth in Revenue. The Revenue has grown by 7.35% in the last year.
- The Revenue has been growing slightly by 2.79% on average over the past years.
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
- The Earnings Per Share is expected to grow by 9.45% on average over the next years. This is quite good.
- HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
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.
- 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
- The Price/Earnings ratio is 21.32, which indicates a rather expensive current valuation of HON.
- Compared to the rest of the industry, the Price/Earnings ratio of HON indicates a somewhat cheap valuation: HON is cheaper than 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, HON is valued a bit cheaper.
- The Price/Forward Earnings ratio is 21.37, which indicates a rather expensive current valuation of HON.
- 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.
- HON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HON is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.64 | ||
| EV/EBITDA | 17.39 |
4.3 Compensation for Growth
- The excellent profitability rating of HON 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%. 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 1.83, HON has a dividend comparable with the average S&P500 company.
| 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.
- HON has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.7%
Div Incr Years2
Div Non Decr Years2
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 2Y4.85%
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 9.36.
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%.