HONEYWELL INTERNATIONAL INC (HON) Fundamental Analysis & Valuation

NASDAQ:HON • US4385161066

Current stock price

223.01 USD
+1.51 (+0.68%)
At close:
223.01 USD
0 (0%)
After Hours:

This HON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HON Profitability Analysis

1.1 Basic Checks

  • In the past year HON was profitable.
  • HON had a positive operating cash flow in the past year.
  • 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.
HON Yearly Net Income VS EBIT VS OCF VS FCFHON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • HON has a Return On Assets of 6.93%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
  • With an excellent Return On Equity value of 33.28%, 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 11.16%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HON is above the industry average of 8.00%.
Industry RankSector 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%
HON Yearly ROA, ROE, ROICHON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • HON's Profit Margin of 12.74% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
  • HON's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 19.33%, HON belongs to the top of the industry, outperforming 100.00% 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.
  • 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.
  • In the last couple of years the Gross Margin of HON has grown nicely.
Industry RankSector 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%
HON Yearly Profit, Operating, Gross MarginsHON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. HON Health Analysis

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.
  • The number of shares outstanding for HON has been reduced compared to 1 year ago.
  • Compared to 5 years ago, HON has less shares outstanding
  • The debt/assets ratio for HON is higher compared to a year ago.
HON Yearly Shares OutstandingHON Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
HON Yearly Total Debt VS Total AssetsHON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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.
  • HON has a Debt to Equity ratio of 2.14. This is in the better half of the industry: HON outperforms 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 6.38
Altman-Z N/A
ROIC/WACC1.33
WACC8.38%
HON Yearly LT Debt VS Equity VS FCFHON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.32 indicates that HON should not have too much problems paying its short term obligations.
  • HON has a Current ratio (1.32) which is in line with its industry peers.
  • A Quick Ratio of 1.05 indicates that HON should not have too much problems paying its short term obligations.
  • HON has a Quick ratio (1.05) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.05
HON Yearly Current Assets VS Current LiabilitesHON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. HON Growth Analysis

3.1 Past

  • HON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.99%, which is quite good.
  • The Earnings Per Share has been growing by 8.49% on average over the past years. This is quite good.
  • 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

  • HON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.15% yearly.
  • The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y-0.24%
EPS Next 2Y4.35%
EPS Next 3Y5.98%
EPS Next 5Y6.15%
Revenue Next Year5.42%
Revenue Next 2Y5.61%
Revenue Next 3Y5.54%
Revenue Next 5Y5.46%

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 decreasing.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HON Yearly Revenue VS EstimatesHON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
HON Yearly EPS VS EstimatesHON Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10

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4

4. HON Valuation Analysis

4.1 Price/Earnings Ratio

  • HON is valuated rather expensively with a Price/Earnings ratio of 20.90.
  • 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 25.54. HON is around the same levels.
  • HON is valuated rather expensively with a Price/Forward Earnings ratio of 20.95.
  • HON's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, HON is valued at the same level.
Industry RankSector Rank
PE 20.9
Fwd PE 20.95
HON Price Earnings VS Forward Price EarningsHON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HON is valued a bit cheaper than 71.43% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HON indicates a rather cheap valuation: HON is cheaper than 85.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 26.15
EV/EBITDA 17
HON Per share dataHON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.46
EPS Next 2Y4.35%
EPS Next 3Y5.98%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. HON Dividend Analysis

5.1 Amount

  • HON has a Yearly Dividend Yield of 2.08%.
  • HON's Dividend Yield is a higher than the industry average which is at 4.68.
  • Compared to an average S&P500 Dividend Yield of 1.89, HON has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.08%

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
HON Yearly Dividends per shareHON Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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 2Y4.35%
EPS Next 3Y5.98%
HON Yearly Income VS Free CF VS DividendHON Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
HON Dividend Payout.HON Dividend Payout, showing the Payout Ratio.HON Dividend Payout.PayoutRetained Earnings

More info and screens

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HON Fundamentals: All Metrics, Ratios and Statistics

HONEYWELL INTERNATIONAL INC

NASDAQ:HON (3/23/2026, 8:00:01 PM)

After market: 223.01 0 (0%)

223.01

+1.51 (+0.68%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners80.8%
Inst Owner Change10.1%
Ins Owners0.04%
Ins Owner Change0.98%
Market Cap141.76B
Revenue(TTM)40.34B
Net Income(TTM)5.14B
Analysts74.71
Price Target247.68 (11.06%)
Short Float %1.19%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 2.08%
Yearly Dividend4.63
Dividend Growth(5Y)4.7%
DP57.91%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.89%
Min EPS beat(2)0.97%
Max EPS beat(2)8.81%
EPS beat(4)4
Avg EPS beat(4)6.14%
Min EPS beat(4)0.97%
Max EPS beat(4)12.31%
EPS beat(8)8
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)3.59%
EPS beat(16)14
Avg EPS beat(16)3.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)1.59%
Revenue beat(4)3
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)1.79%
Revenue beat(8)5
Avg Revenue beat(8)0.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.1%
PT rev (1m)1.53%
PT rev (3m)0.52%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)0.67%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.94%
Valuation
Industry RankSector Rank
PE 20.9
Fwd PE 20.95
P/S 3.51
P/FCF 26.15
P/OCF 22.12
P/B 9.18
P/tB N/A
EV/EBITDA 17
EPS(TTM)10.67
EY4.78%
EPS(NY)10.64
Fwd EY4.77%
FCF(TTM)8.53
FCFY3.82%
OCF(TTM)10.08
OCFY4.52%
SpS63.46
BVpS24.29
TBVpS-19.47
PEG (NY)N/A
PEG (5Y)2.46
Graham Number76.36
Profitability
Industry RankSector Rank
ROA 6.93%
ROE 33.28%
ROCE 15.38%
ROIC 11.16%
ROICexc 14.47%
ROICexgc 39.86%
OM 19.33%
PM (TTM) 12.74%
GM 36.75%
FCFM 13.44%
ROA(3y)7.91%
ROA(5y)8.06%
ROE(3y)33.2%
ROE(5y)31.84%
ROIC(3y)11.77%
ROIC(5y)12.21%
ROICexc(3y)14.68%
ROICexc(5y)15.51%
ROICexgc(3y)37.23%
ROICexgc(5y)38.5%
ROCE(3y)15.68%
ROCE(5y)16.22%
ROICexgc growth 3Y-1.4%
ROICexgc growth 5Y1.11%
ROICexc growth 3Y-5.1%
ROICexc growth 5Y-1.76%
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%
F-Score6
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 6.38
Debt/EBITDA 3.6
Cap/Depr 71.04%
Cap/Sales 2.44%
Interest Coverage 250
Cash Conversion 69.76%
Profit Quality 105.51%
Current Ratio 1.32
Quick Ratio 1.05
Altman-Z N/A
F-Score6
WACC8.38%
ROIC/WACC1.33
Cap/Depr(3y)82.21%
Cap/Depr(5y)76.69%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.72%
Profit Quality(3y)89.33%
Profit Quality(5y)90.31%
High Growth Momentum
Growth
EPS 1Y (TTM)8.99%
EPS 3Y6.71%
EPS 5Y8.49%
EPS Q2Q%4.86%
EPS Next Y-0.24%
EPS Next 2Y4.35%
EPS Next 3Y5.98%
EPS Next 5Y6.15%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y1.82%
Revenue growth 5Y2.79%
Sales Q2Q%-3.27%
Revenue Next Year5.42%
Revenue Next 2Y5.61%
Revenue Next 3Y5.54%
Revenue Next 5Y5.46%
EBIT growth 1Y-2.33%
EBIT growth 3Y2.21%
EBIT growth 5Y3.42%
EBIT Next Year24.93%
EBIT Next 3Y13.03%
EBIT Next 5Y11.49%
FCF growth 1Y9.91%
FCF growth 3Y6.35%
FCF growth 5Y0.45%
OCF growth 1Y5.1%
OCF growth 3Y6.71%
OCF growth 5Y0.64%

HONEYWELL INTERNATIONAL INC / HON Fundamental Analysis FAQ

What is the fundamental rating for HON stock?

ChartMill assigns a fundamental rating of 5 / 10 to HON.


What is the valuation status for HON stock?

ChartMill assigns a valuation rating of 4 / 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 20.9 and the Price/Book (PB) ratio is 9.18.


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%.