HONEYWELL INTERNATIONAL INC (HON) Fundamental Analysis & Valuation

NASDAQ:HON • US4385161066

Current stock price

222.22 USD
-7.52 (-3.27%)
At close:
222.421 USD
+0.2 (+0.09%)
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

  • HON had positive earnings in the past year.
  • In the past year HON had a positive cash flow from operations.
  • In the past 5 years HON has always been profitable.
  • HON had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of HON (6.93%) is better than 83.33% of its industry peers.
  • HON has a Return On Equity of 33.28%. This is amongst the best in the industry. HON outperforms 83.33% of its industry peers.
  • The Return On Invested Capital of HON (11.16%) is better than 83.33% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for HON is above the industry average of 9.09%.
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 has a better Profit Margin (12.74%) than 83.33% of its industry peers.
  • In the last couple of years the Profit Margin of HON has remained more or less at the same level.
  • 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.
  • HON has a Gross Margin of 36.75%. This is amongst the best in the industry. HON outperforms 83.33% of its industry peers.
  • 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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5

2. HON Health Analysis

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.
  • HON has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for HON has been reduced compared to 5 years ago.
  • HON has a worse debt/assets ratio than last year.
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.
  • Looking at the Debt to FCF ratio, with a value of 6.38, 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 2.14. This is a high value indicating a heavy dependency on external financing.
  • HON's Debt to Equity ratio of 2.14 is fine compared to the rest of the industry. HON outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 6.38
Altman-Z N/A
ROIC/WACC1.12
WACC9.96%
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 of 1.32. This is in the better half of the industry: HON outperforms 66.67% 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.
  • With a decent Quick ratio value of 1.05, HON is doing good in the industry, outperforming 66.67% of the companies in the same 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.
  • Based on estimates for the next years, HON will show a small growth in Revenue. The Revenue will grow by 5.46% on average per year.
EPS Next Y-0.32%
EPS Next 2Y4.21%
EPS Next 3Y5.85%
EPS Next 5Y6.15%
Revenue Next Year5.37%
Revenue Next 2Y5.64%
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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5

4. HON Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.83, HON is valued on the expensive side.
  • HON's Price/Earnings ratio is a bit cheaper when compared to the industry. HON is cheaper than 66.67% of the companies in the same industry.
  • HON is valuated rather cheaply when we compare the Price/Earnings ratio to 27.71, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 20.89, which indicates a rather expensive current valuation of HON.
  • HON's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HON is cheaper than 66.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.09, HON is valued a bit cheaper.
Industry RankSector Rank
PE 20.83
Fwd PE 20.89
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 cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • 100.00% of the companies in the same industry are more expensive than HON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.97
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)2.45
EPS Next 2Y4.21%
EPS Next 3Y5.85%

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

5

5. HON Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.08%, HON has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 5.09, HON pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, 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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.7%
Div Incr Years3
Div Non Decr Years3
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.
  • The dividend of HON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.91%
EPS Next 2Y4.21%
EPS Next 3Y5.85%
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

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HON Fundamentals: All Metrics, Ratios and Statistics

HONEYWELL INTERNATIONAL INC

NASDAQ:HON (4/21/2026, 8:00:02 PM)

After market: 222.421 +0.2 (+0.09%)

222.22

-7.52 (-3.27%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners80.76%
Inst Owner Change-0.49%
Ins Owners0.04%
Ins Owner Change1.21%
Market Cap140.81B
Revenue(TTM)40.34B
Net Income(TTM)5.14B
Analysts74.86
Price Target253.63 (14.13%)
Short Float %1.73%
Short Ratio2.8
Dividend
Industry RankSector Rank
Dividend Yield 2.08%
Yearly Dividend4.63
Dividend Growth(5Y)4.7%
DP57.91%
Div Incr Years3
Div Non Decr Years3
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)4.57%
EPS beat(12)11
Avg EPS beat(12)3.58%
EPS beat(16)14
Avg EPS beat(16)3.12%
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)2.4%
PT rev (3m)6.41%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.95%
Valuation
Industry RankSector Rank
PE 20.83
Fwd PE 20.89
P/S 3.49
P/FCF 25.97
P/OCF 21.97
P/B 9.12
P/tB N/A
EV/EBITDA 17
EPS(TTM)10.67
EY4.8%
EPS(NY)10.64
Fwd EY4.79%
FCF(TTM)8.56
FCFY3.85%
OCF(TTM)10.11
OCFY4.55%
SpS63.66
BVpS24.37
TBVpS-19.53
PEG (NY)N/A
PEG (5Y)2.45
Graham Number76.4843 (-65.58%)
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
WACC9.96%
ROIC/WACC1.12
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-0.32%
EPS Next 2Y4.21%
EPS Next 3Y5.85%
EPS Next 5Y6.15%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y1.82%
Revenue growth 5Y2.79%
Sales Q2Q%-3.27%
Revenue Next Year5.37%
Revenue Next 2Y5.64%
Revenue Next 3Y5.54%
Revenue Next 5Y5.46%
EBIT growth 1Y-2.33%
EBIT growth 3Y2.21%
EBIT growth 5Y3.42%
EBIT Next Year25.72%
EBIT Next 3Y13.16%
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 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.


What is the profitability of HON stock?

HONEYWELL INTERNATIONAL INC (HON) has a profitability rating of 8 / 10.


Can you provide the expected EPS growth for HON stock?

The Earnings per Share (EPS) of HONEYWELL INTERNATIONAL INC (HON) is expected to decline by -0.32% in the next year.


How sustainable is the dividend of HONEYWELL INTERNATIONAL INC (HON) stock?

The dividend rating of HONEYWELL INTERNATIONAL INC (HON) is 6 / 10 and the dividend payout ratio is 57.91%.