HONEYWELL INTERNATIONAL INC (1HON.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HON - US4385161066 - Common Stock
164.36 EUR
+1.22 (+0.75%)
Overall 1HON gets a fundamental rating of 6 out of 10. We evaluated 1HON against 15 industry peers in the Industrial Conglomerates industry. While 1HON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1HON has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 1HON had positive earnings in the past year.
- 1HON had a positive operating cash flow in the past year.
- Each year in the past 5 years 1HON has been profitable.
- In the past 5 years 1HON always reported a positive cash flow from operatings.
1.2 Ratios
- 1HON has a Return On Assets of 7.57%. This is amongst the best in the industry. 1HON outperforms 87.50% of its industry peers.
- Looking at the Return On Equity, with a value of 36.52%, 1HON belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.86%, 1HON belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1HON is significantly above the industry average of 6.40%.
| 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
- 1HON has a Profit Margin of 15.07%. This is amongst the best in the industry. 1HON outperforms 87.50% of its industry peers.
- 1HON's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1HON (19.89%) is better than 87.50% of its industry peers.
- In the last couple of years the Operating Margin of 1HON has remained more or less at the same level.
- With a Gross Margin value of 36.94%, 1HON is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
- 1HON'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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1HON is creating some value.
- 1HON has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1HON has been reduced compared to 5 years ago.
- 1HON has a worse debt/assets ratio than last year.
2.2 Solvency
- 1HON has an Altman-Z score of 3.02. This indicates that 1HON is financially healthy and has little risk of bankruptcy at the moment.
- 1HON has a Altman-Z score of 3.02. This is amongst the best in the industry. 1HON outperforms 87.50% of its industry peers.
- The Debt to FCF ratio of 1HON is 6.01, which is on the high side as it means it would take 1HON, 6.01 years of fcf income to pay off all of its debts.
- 1HON's Debt to FCF ratio of 6.01 is amongst the best of the industry. 1HON outperforms 81.25% of its industry peers.
- A Debt/Equity ratio of 2.20 is on the high side and indicates that 1HON has dependencies on debt financing.
- The Debt to Equity ratio of 1HON (2.20) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.3
WACC7.59%
2.3 Liquidity
- 1HON has a Current Ratio of 1.36. This is a normal value and indicates that 1HON is financially healthy and should not expect problems in meeting its short term obligations.
- 1HON has a Current ratio of 1.36. This is in the lower half of the industry: 1HON underperforms 75.00% of its industry peers.
- A Quick Ratio of 1.04 indicates that 1HON should not have too much problems paying its short term obligations.
- 1HON has a Quick ratio of 1.04. This is comparable to the rest of the industry: 1HON outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.35% over the past year.
- Measured over the past 5 years, 1HON shows a small growth in Earnings Per Share. The EPS has been growing by 3.71% on average per year.
- 1HON shows a small growth in Revenue. In the last year, the Revenue has grown by 7.45%.
- 1HON 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
- Based on estimates for the next years, 1HON will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
- Based on estimates for the next years, 1HON will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y9.9%
EPS Next 2Y4.66%
EPS Next 3Y6.3%
EPS Next 5Y9.36%
Revenue Next Year6.53%
Revenue Next 2Y2.15%
Revenue Next 3Y3.26%
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
- The Price/Earnings ratio is 18.24, which indicates a rather expensive current valuation of 1HON.
- Compared to the rest of the industry, the Price/Earnings ratio of 1HON indicates a somewhat cheap valuation: 1HON is cheaper than 68.75% of the companies listed in the same industry.
- 1HON is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 17.95, the valuation of 1HON can be described as rather expensive.
- 1HON's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1HON is cheaper than 68.75% of the companies in the same industry.
- 1HON's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1HON.
- Based on the Price/Free Cash Flow ratio, 1HON is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 14.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)4.92
EPS Next 2Y4.66%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
- 1HON has a Yearly Dividend Yield of 2.40%.
- Compared to an average industry Dividend Yield of 3.18, 1HON has a dividend in line with its industry peers.
- 1HON's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
- The dividend of 1HON has a limited annual growth rate of 5.64%.
Dividend Growth(5Y)5.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 48.21% of the earnings are spent on dividend by 1HON. This is a bit on the high side, but may be sustainable.
- The dividend of 1HON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.21%
EPS Next 2Y4.66%
EPS Next 3Y6.3%
BIT:1HON (12/8/2025, 7:00:00 PM)
164.36
+1.22 (+0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)02-04 2026-02-04
Inst Owners80.63%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap104.35B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts74.38
Price Target211.96 (28.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend3.81
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years0
Div Non Decr Years0
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)-1.89%
PT rev (3m)-4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 17.95 | ||
| P/S | 3.01 | ||
| P/FCF | 19.83 | ||
| P/OCF | 16.33 | ||
| P/B | 7.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.37 |
EPS(TTM)9.01
EY5.48%
EPS(NY)9.16
Fwd EY5.57%
FCF(TTM)8.29
FCFY5.04%
OCF(TTM)10.07
OCFY6.12%
SpS54.69
BVpS22.57
TBVpS-18.94
PEG (NY)1.84
PEG (5Y)4.92
Graham Number67.64
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 | 3.02 |
F-Score4
WACC7.59%
ROIC/WACC1.3
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 Y9.9%
EPS Next 2Y4.66%
EPS Next 3Y6.3%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.53%
Revenue Next 2Y2.15%
Revenue Next 3Y3.26%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year22.93%
EBIT Next 3Y9.85%
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 / 1HON.MI FAQ
What is the ChartMill fundamental rating of HONEYWELL INTERNATIONAL INC (1HON.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1HON.MI.
Can you provide the valuation status for HONEYWELL INTERNATIONAL INC?
ChartMill assigns a valuation rating of 4 / 10 to HONEYWELL INTERNATIONAL INC (1HON.MI). This can be considered as Fairly Valued.
How profitable is HONEYWELL INTERNATIONAL INC (1HON.MI) stock?
HONEYWELL INTERNATIONAL INC (1HON.MI) has a profitability rating of 8 / 10.
What is the financial health of HONEYWELL INTERNATIONAL INC (1HON.MI) stock?
The financial health rating of HONEYWELL INTERNATIONAL INC (1HON.MI) is 5 / 10.
What is the earnings growth outlook for HONEYWELL INTERNATIONAL INC?
The Earnings per Share (EPS) of HONEYWELL INTERNATIONAL INC (1HON.MI) is expected to grow by 9.9% in the next year.