HONEYWELL INTERNATIONAL INC (HON) Stock Fundamental Analysis
USA - NASDAQ:HON - US4385161066 - Common Stock
201.14 USD
+1.03 (+0.51%)
HON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HON had positive earnings in the past year.
In the past year HON had a positive cash flow from operations.
Each year in the past 5 years HON has been profitable.
Each year in the past 5 years HON had a positive operating cash flow.
1.2 Ratios
HON has a better Return On Assets (7.57%) than 85.71% of its industry peers.
The Return On Equity of HON (36.52%) is better than 85.71% of its industry peers.
The Return On Invested Capital of HON (9.86%) is better than 85.71% of its industry peers.
HON had an Average Return On Invested Capital over the past 3 years of 12.23%. This is above the industry average of 8.23%.
| 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
HON has a Profit Margin of 15.07%. This is amongst the best in the industry. HON outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of HON has declined.
Looking at the Operating Margin, with a value of 19.89%, 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 Operating Margin of HON has remained more or less at the same level.
HON has a Gross Margin of 36.94%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
HON'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
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.
Compared to 5 years ago, HON has less shares outstanding
Compared to 1 year ago, HON has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that HON is not in any danger for bankruptcy at the moment.
The Altman-Z score of HON (3.07) is better than 85.71% of its industry peers.
The Debt to FCF ratio of HON is 6.01, which is on the high side as it means it would take HON, 6.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HON (6.01) is better than 100.00% of its industry peers.
HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 2.20, HON is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.28
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HON should not have too much problems paying its short term obligations.
HON has a Current ratio of 1.36. This is comparable to the rest of the industry: HON outperforms 57.14% of its industry peers.
HON has a Quick Ratio of 1.04. 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 1.04, HON is in line with its industry, outperforming 57.14% of the companies in the same industry.
| 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, HON shows a small growth in Earnings Per Share. The EPS has been growing by 3.71% on average per year.
The Revenue has been growing slightly by 7.45% in the past year.
The Revenue has been growing slightly by 0.96% on average over the past years.
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, HON will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
EPS Next Y8.7%
EPS Next 2Y7.8%
EPS Next 3Y8.05%
EPS Next 5Y9.36%
Revenue Next Year6.63%
Revenue Next 2Y5.12%
Revenue Next 3Y5.01%
Revenue Next 5Y4.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 19.07, the valuation of HON can be described as rather expensive.
Based on the Price/Earnings ratio, HON is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.19, HON is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.68, 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 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.50. HON is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 17.68 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.72 | ||
| EV/EBITDA | 14.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HON does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)5.14
EPS Next 2Y7.8%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, HON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.10, HON pays a better dividend. On top of this HON pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, HON has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of HON has a limited annual growth rate of 5.64%.
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)5.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
48.21% of the earnings are spent on dividend by HON. 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.
DP48.21%
EPS Next 2Y7.8%
EPS Next 3Y8.05%
NASDAQ:HON (10/31/2025, 2:34:05 PM)
201.14
+1.03 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change-0.24%
Ins Owners0.04%
Ins Owner Change0.02%
Market Cap127.70B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts75
Price Target251.78 (25.18%)
Short Float %3.26%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend4.46
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0%
PT rev (3m)1.87%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 17.68 | ||
| P/S | 3.14 | ||
| P/FCF | 20.72 | ||
| P/OCF | 17.06 | ||
| P/B | 7.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.88 |
EPS(TTM)10.55
EY5.25%
EPS(NY)11.38
Fwd EY5.66%
FCF(TTM)9.71
FCFY4.83%
OCF(TTM)11.79
OCFY5.86%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)2.19
PEG (5Y)5.14
Graham Number79.21
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 | 3.07 |
F-Score4
WACC7.7%
ROIC/WACC1.28
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 Y8.7%
EPS Next 2Y7.8%
EPS Next 3Y8.05%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.63%
Revenue Next 2Y5.12%
Revenue Next 3Y5.01%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year23.61%
EBIT Next 3Y12.26%
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 / 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 of HONEYWELL INTERNATIONAL INC (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 expected EPS growth for HON stock?
The Earnings per Share (EPS) of HONEYWELL INTERNATIONAL INC (HON) is expected to grow by 8.7% in the next year.
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 48.21%.