HONEYWELL INTERNATIONAL INC (HON) Fundamental Analysis & Valuation

NASDAQ:HON • US4385161066

Current stock price

229.38 USD
-2.81 (-1.21%)
At close:
230.9 USD
+1.52 (+0.66%)
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.
  • 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.
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 83.33% of its industry peers.
  • With an excellent Return On Equity value of 33.28%, HON belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • 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

  • With an excellent Profit Margin value of 12.74%, HON belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • 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.
  • HON has a Gross Margin of 36.75%. This is amongst the best in the industry. HON outperforms 83.33% of its industry peers.
  • HON's Gross Margin has improved in the last couple of years.
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

  • 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.
  • 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

  • The Debt to FCF ratio of HON is 6.38, which is on the high side as it means it would take HON, 6.38 years of fcf income to pay off all of its debts.
  • HON has a better Debt to FCF ratio (6.38) than 100.00% of its industry peers.
  • A Debt/Equity ratio of 2.14 is on the high side and indicates that HON has dependencies on debt financing.
  • HON has a Debt to Equity ratio of 2.14. This is in the better half 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/WACC1.1
WACC10.13%
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

  • 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 has a better Current ratio (1.32) than 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.
  • The Quick ratio of HON (1.05) is better than 66.67% of its industry peers.
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.
  • Measured over the past years, HON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.49% on average per year.
  • The Revenue has been growing slightly by 7.35% in the past 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 6.15% on average over the next years.
  • 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 Year5.43%
Revenue Next 2Y5.64%
Revenue Next 3Y5.54%
Revenue Next 5Y5.46%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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

  • HON is valuated rather expensively with a Price/Earnings ratio of 21.50.
  • 66.67% of the companies in the same industry are more expensive than HON, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.53. HON is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 21.57 indicates a rather expensive valuation of HON.
  • Based on the Price/Forward Earnings ratio, HON is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of HON to the average of the S&P500 Index (37.95), we can say HON is valued slightly cheaper.
Industry RankSector Rank
PE 21.5
Fwd PE 21.57
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.
  • Based on the Price/Free Cash Flow ratio, HON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 26.89
EV/EBITDA 17.73
HON Per share dataHON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.53
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

  • HON has a Yearly Dividend Yield of 2.02%.
  • HON's Dividend Yield is a higher than the industry average which is at 5.14.
  • HON's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.02%

5.2 History

  • The dividend of HON has a limited annual growth rate of 4.70%.
  • HON has been paying a dividend for at least 10 years, so it has 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

  • 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 2Y4.21%
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 (4/16/2026, 7:35:01 PM)

After market: 230.9 +1.52 (+0.66%)

229.38

-2.81 (-1.21%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners80.76%
Inst Owner Change0.01%
Ins Owners0.04%
Ins Owner Change0.96%
Market Cap145.81B
Revenue(TTM)40.34B
Net Income(TTM)5.14B
Analysts74.86
Price Target253.63 (10.57%)
Short Float %1.73%
Short Ratio2.8
Dividend
Industry RankSector Rank
Dividend Yield 2.02%
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)4.58%
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)2.4%
PT rev (3m)5%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.15%
Valuation
Industry RankSector Rank
PE 21.5
Fwd PE 21.57
P/S 3.61
P/FCF 26.89
P/OCF 22.75
P/B 9.44
P/tB N/A
EV/EBITDA 17.73
EPS(TTM)10.67
EY4.65%
EPS(NY)10.64
Fwd EY4.64%
FCF(TTM)8.53
FCFY3.72%
OCF(TTM)10.08
OCFY4.39%
SpS63.46
BVpS24.29
TBVpS-19.47
PEG (NY)N/A
PEG (5Y)2.53
Graham Number76.3621 (-66.71%)
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
WACC10.13%
ROIC/WACC1.1
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 Year5.43%
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 5 / 10 and the dividend payout ratio is 57.91%.