Honeywell International (HON) AI Stock Analysis

• Market Cap: $132.73B
• Dividend Yield: 2.16%
• Average Volume (3M): 4.25M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.74
• Revenue Growth: 7.16%
• EPS Growth: 0.21%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.75
• Shares Outstanding: 634,896,550
• 10 Day Avg. Volume: 4,716,755
• 30 Day Avg. Volume: 4,251,625
• PEG Ratio: 9.56
• Price to Book (P/B): 7.90
• Price to Sales (P/S): 3.82
• P/FCF Ratio: 29.81
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 4.42
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 17.97
• 1Y Price Target: $250.64
• Price Target Upside: 19.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $244.00 ▲(16.72% Upside)

Honeywell's overall stock score reflects its strong financial performance and positive earnings call sentiment, which are slightly offset by technical analysis indicators suggesting bearish momentum. The company's strategic initiatives, including spin-offs and acquisitions, are expected to drive future growth, although investors should remain cautious of potential risks from increased leverage and cost pressures.

Positive Factors

Strategic Portfolio Optimization

The strategic portfolio optimization, including spin-offs, is expected to enhance shareholder value and focus on core strengths, driving long-term growth.

Record Order Backlog

A record order backlog indicates strong demand and provides revenue visibility, supporting sustained growth and operational planning.

Leadership Change in Industrial Automation

The new leadership in Industrial Automation could leverage extensive industry experience to strengthen market position and drive segment growth.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting long-term stability if not managed carefully.

Margin Contraction in Aerospace

Margin contraction in Aerospace due to cost inflation and acquisitions could pressure profitability, affecting long-term operational efficiency.

Declining Free Cash Flow

Declining free cash flow may limit future investments and flexibility, impacting the company's ability to fund growth initiatives sustainably.

Honeywell International Business Overview & Revenue Model

Company Description

Honeywell International Inc. is a multinational conglomerate specializing in various sectors including aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. The company is known for its innovative products and solutions that enhance operational efficiency, safety, and sustainability across industries. Honeywell's core offerings include aircraft engines, control technologies, automation solutions, personal protective equipment, and advanced materials.

How the Company Makes Money

Honeywell generates revenue through multiple key streams, primarily from its four business segments: Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Aerospace segment provides products and services for commercial and military aircraft, including engines, avionics, and aftermarket services. The Building Technologies segment offers solutions for building automation, security, and energy management, targeting both commercial and residential customers. Performance Materials and Technologies focuses on high-performance materials and process technologies used in various industries, including petrochemicals and industrial manufacturing. Lastly, the Safety and Productivity Solutions segment includes personal protective equipment, scanners, and software solutions designed to improve workplace safety and efficiency. Honeywell's revenue is bolstered by long-term contracts, partnerships with other companies, and a strong global presence, allowing it to cater to diverse markets and customer needs.

Honeywell International Financial Statement Overview

Summary

Honeywell demonstrates strong financial performance with consistent revenue growth and robust profitability. The company's financials are supported by a strong balance sheet, moderate leverage, and positive cash flow dynamics. However, a slight decline in operating efficiency and increasing liabilities require monitoring.

Income Statement

Honeywell's income statement shows strong performance with consistent revenue growth and robust profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 38.1%, and the net profit margin is 14.5%, indicating efficient cost management and solid earnings. Revenue growth is positive, supporting a healthy expansion trajectory. However, a slight decline in EBITDA margin from 23.7% in 2024 to 22.7% in TTM suggests some pressure on operating efficiency.

Balance Sheet

Honeywell's balance sheet reflects stable financial health with a debt-to-equity ratio of 1.23 in TTM, showing a moderate leverage level appropriate for its industry. The equity ratio is strong at 34.1%, emphasizing a solid capital structure. Return on Equity (ROE) stands at an impressive 22.2%, highlighting effective utilization of shareholder capital. However, the increase in total liabilities over recent periods requires monitoring to ensure long-term sustainability.

Cash Flow

The cash flow statement reveals a positive trend in operating cash flow, with a TTM figure of $6.25 billion, sustaining growth. Free cash flow remains strong with a growth rate of 2.6% from 2024 to TTM, supporting potential reinvestment and shareholder returns. The operating cash flow to net income ratio is 1.1, which is healthy, although fluctuations in investing activities should be observed for future strategic impacts.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.99B	38.50B	36.65B	35.45B	34.39B	32.64B
Gross Profit	15.32B	14.76B	14.29B	13.61B	12.77B	12.15B
EBITDA	9.84B	9.61B	9.10B	8.00B	8.80B	7.37B
Net Income	5.72B	5.71B	5.66B	4.97B	5.54B	4.78B
Balance Sheet
Total Assets	78.42B	75.20B	61.52B	62.27B	64.47B	64.59B
Cash, Cash Equivalents and Short-Term Investments	10.68B	10.95B	8.10B	10.11B	11.52B	15.22B
Total Debt	37.65B	32.23B	21.54B	20.54B	20.63B	23.21B
Total Liabilities	61.77B	56.03B	45.08B	44.95B	45.22B	46.79B
Stockholders Equity	16.09B	18.62B	15.86B	16.70B	18.57B	17.55B
Cash Flow
Free Cash Flow	4.97B	4.93B	4.30B	4.51B	5.14B	5.30B
Operating Cash Flow	6.19B	6.10B	5.34B	5.27B	6.04B	6.21B
Investing Cash Flow	-6.63B	-10.16B	-1.29B	-93.00M	-1.06B	-987.00M
Financing Cash Flow	1.12B	6.84B	-5.76B	-6.33B	-8.25B	-81.00M

Honeywell International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 209.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HON, the sentiment is Negative. The current price of 209.05 is below the 20-day moving average (MA) of 210.71, below the 50-day MA of 215.38, and below the 200-day MA of 215.90, indicating a bearish trend. The MACD of -2.03 indicates Negative momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HON.

Honeywell International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	80 Outperform	$314.95B	41.46	40.20%	0.46%	-32.80%	69.39%
VMI	78 Outperform	$7.79B	36.73	14.51%	0.67%	-0.15%	24.55%
HON	74 Outperform	$132.73B	23.77	34.60%	2.16%	7.16%	0.21%
ITW	73 Outperform	$75.79B	22.82	109.06%	2.35%	-1.40%	11.65%
JCI	71 Outperform	$71.19B	32.31	12.52%	1.39%	-13.10%	40.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	58 Neutral	$84.51B	22.07	96.00%	1.82%	-19.56%	325.26%

Honeywell International Corporate Events

Honeywell Appoints New CEO for Industrial Automation

On August 22, 2025, Honeywell International announced the appointment of Mr. Peter Lau as the new President and CEO of its Industrial Automation segment, effective October 15, 2025. This leadership change follows the departure of Mr. Lucian Boldea on August 31, 2025, and is expected to impact Honeywell’s operations by leveraging Mr. Lau’s extensive experience in the industry, potentially strengthening its market position.

Honeywell Files for Spin-Off of Advanced Materials

On August 21, 2025, Honeywell International announced the filing of a Form 10 registration statement with the SEC for the spin-off of its Advanced Materials business into an independent company named Solstice Advanced Materials Inc. This move aims to position Solstice as a leading specialty materials company with strong market positions in refrigerants, semiconductor materials, and healthcare packaging solutions. The spin-off is expected to enhance shareholder value and capitalize on growth trends in sustainability and advanced computing.

Honeywell Ends Agreement with Resideo, Boosts Outlook

On July 30, 2025, Honeywell International Inc. and Resideo Technologies, Inc. agreed to terminate their Indemnification and Reimbursement Agreement, originally established during Resideo’s spin-off from Honeywell in 2018. As part of this termination, Resideo will make a one-time payment of $1.59 billion to Honeywell, replacing future obligations under the agreement. This move is expected to streamline Honeywell’s financial operations and potentially impact its financial outlook positively. Additionally, Honeywell’s Board of Directors amended the company’s By-laws on July 25, 2025, to include a new section related to the United States National Industrial Security Program Operating Manual, indicating a focus on compliance and security.

Honeywell International Updates Organizational Documents

Honeywell International recently underwent a reorganization process, resulting in amendments to its organizational documents. The changes to the Certificate of Incorporation and Bylaws are primarily related to certain dates and ministerial language, maintaining the core structure of the documents prior to the Liability Management Reorganization.