227.56 USD
+0.04 (+0.02%)
At close: Feb 2, 2026
228 USD
+0.44 (+0.19%)
After Hours: 2/2/2026, 8:00:01 PM
Overall HON gets a fundamental rating of 6 out of 10. We evaluated HON 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
- HON had positive earnings in the past year.
- HON had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 6.93%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 33.28%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- HON's Return On Invested Capital of 11.16% is amongst the best of 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 7.98%.
| 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
- 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.
- In the last couple of years the Profit Margin of HON has remained more or less at the same level.
- The Operating Margin of HON (19.33%) is better than 100.00% of its industry peers.
- HON's Operating Margin has been stable in the last couple of years.
- 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.
- 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
- 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.
- HON has a worse debt/assets ratio than last year.
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.
- With a decent Debt to Equity ratio value of 2.14, HON is doing good in 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.
- HON's Current ratio of 1.32 is in line compared to the rest of the industry. HON outperforms 57.14% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.05, HON is in line with its industry, outperforming 57.14% of the companies in the same 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.
- 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
- 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.
- 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
- A Price/Earnings ratio of 21.33 indicates a rather expensive valuation of HON.
- HON's Price/Earnings ratio is a bit cheaper when compared to the industry. HON is cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.41. HON is valued slightly cheaper when compared to this.
- HON is valuated rather expensively with a Price/Forward Earnings ratio of 21.37.
- 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 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
- 71.43% of the companies in the same industry are more expensive than HON, based on the Enterprise Value to EBITDA ratio.
- 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 | 26.65 | ||
| 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
- With a Yearly Dividend Yield of 2.09%, 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.
- HON's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| 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.
- The dividend of HON decreased in the last 3 years.
Dividend Growth(5Y)4.7%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 57.91% 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.
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 21.33 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%.