Honeywell International (HON) AI Stock Analysis

• Market Cap: $123.91B
• Dividend Yield: 2.31%
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.76
• Revenue Growth: 5.05%
• EPS Growth: 2.73%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 63
• Industry: Conglomerates
• EPS (TTM): 8.71
• Shares Outstanding: 648,767,760
• 10 Day Avg. Volume: 4,505,480
• 30 Day Avg. Volume: 4,639,339
• PEG Ratio: 8.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.55
• Price to Cash Flow (P/CF): 15.00
• P/FCF Ratio: 16.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $230.17
• Price Target Upside: 20.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Honeywell's strong financial performance and strategic initiatives provide a solid foundation for future growth. While the company faces some challenges, such as margin pressure and macroeconomic headwinds, its balanced technical outlook and reasonable valuation support a positive stock rating. Continued strategic execution and financial management will be key to sustaining this momentum.

Positive Factors

Acquisition

The acquisition of Sundyne will amplify Honeywell’s position in UOP and Process Solutions.

Sales Synergies

Honeywell expects material sales synergies from growing Sundyne’s aftermarket business.

Negative Factors

Earnings Impact

The acquisition is projected to be neutral to earnings in 2025, with accretive effects not expected until 2026.

Guidance Expectations

The FY25 outlook and 1Q guidance are both below the Street's expectations, indicating potential challenges ahead.

Profitability Pressure

Segment margins contracted to 20.9%, indicating pressure on profitability despite the sales growth.

Honeywell International Business Overview & Revenue Model

Company Description

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; thermal systems, as well as wireless connectivity and management services. The company's Honeywell Building Technologies segment offers software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. Its Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides reduced and low global-warming-potential materials based on hydrofluoro-olefin technology. The company's Safety and Productivity Solutions segment provides personal protection equipment, apparel, gear, and footwear; gas detection technology; cloud-based notification and emergency messaging; mobile devices and software; supply chain and warehouse automation equipment, and software solutions; custom-engineered sensors, switches, and controls; and data and asset management productivity software solutions. The company was founded in 1906 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Honeywell International makes money through the sale of its diversified portfolio of products and services across its four main business segments. In aerospace, Honeywell provides integrated avionics, engines, systems, and service solutions for aircraft manufacturers, airlines, and defense and space contractors. The building technologies segment offers products and services that enhance energy efficiency, building safety, and security, including automation and control systems. The performance materials and technologies segment produces high-performance specialty materials, process technologies, and automation solutions for the refining, petrochemical, and other industries. Lastly, the safety and productivity solutions segment provides personal protective equipment, sensors, and productivity solutions. Honeywell's revenue streams are supported by strong partnerships with key industry players and a focus on innovation and sustainability.

Honeywell International Financial Statement Overview

Summary

Honeywell International exhibits a strong financial position with consistent revenue and profit growth, efficient operations, and solid cash flow generation. While the balance sheet is stable, further debt reduction could enhance financial flexibility.

Income Statement

Honeywell International demonstrates strong revenue growth with a 5.0% increase in TTM. The gross profit margin improved to 38.3%, indicating effective cost management. Net profit margin remained stable at 14.8%, reflecting consistent profitability. EBIT and EBITDA margins are robust at 19.8% and 22.2%, respectively, showcasing efficient operational performance.

Balance Sheet

The balance sheet is well-structured with a debt-to-equity ratio of 1.1, showing moderate leverage. Return on Equity (ROE) is impressive at 21.4%, indicating strong shareholder returns. The equity ratio of 35.5% suggests a solid capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Operating cash flow is solid at $6.1 billion, providing a healthy 1.1x coverage of net income. Free cash flow growth is strong at 14.7%, driven by efficient capital expenditure management. The free cash flow to net income ratio stands at 0.9, indicating substantial cash generation relative to profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
38.50B	36.66B	35.47B	34.39B	32.64B
	Gross Profit
14.66B	13.67B	11.64B	11.00B	10.47B
	EBIT
7.21B	7.55B	6.79B	7.58B	6.37B
	EBITDA
9.61B	8.73B	8.00B	8.80B	7.37B
	Net Income Common Stockholders
5.71B	5.66B	4.97B	5.54B	4.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.95B	8.10B	10.11B	11.52B	15.22B
	Total Assets
1.36B	61.52B	62.27B	64.47B	64.59B
	Total Debt
32.23B	21.54B	19.57B	19.60B	22.38B
	Net Debt
21.66B	13.61B	9.94B	8.64B	8.11B
	Total Liabilities
408.00M	45.08B	44.95B	45.22B	46.79B
	Stockholders Equity
957.00M	15.86B	17.32B	19.24B	17.79B
Cash Flow		Free Cash Flow
4.93B	4.30B	4.51B	5.14B	5.30B
	Operating Cash Flow
6.10B	5.34B	5.27B	6.04B	6.21B
	Investing Cash Flow
-10.16B	-1.29B	-93.00M	-1.06B	-987.00M
	Financing Cash Flow
6.84B	-5.76B	-6.33B	-8.25B	-81.00M

Honeywell International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 190.99
• 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 190.99 is below the 20-day moving average (MA) of 209.76, below the 50-day MA of 211.45, and below the 200-day MA of 212.01, indicating a bearish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.13 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
HON	74 Outperform	$123.91B	21.94	33.10%	2.31%	5.05%	2.73%
VMI	68 Neutral	$5.32B	15.43	24.05%	0.93%	-2.38%	141.60%
MMM	64 Neutral	$68.44B	16.80	97.86%	2.23%	-18.72%	―
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%

Honeywell International Corporate Events

Honeywell International Appoints New Independent Director

On April 1, 2025, Honeywell International appointed Stephen Williamson, the Senior Vice President and CFO of Thermo Fisher Scientific, to its Board of Directors as an independent director and Audit Committee member. Williamson’s extensive financial expertise and international business experience are expected to support Honeywell’s transformational objectives and global growth initiatives.

Honeywell Secures New $3 Billion Credit Agreement

On March 17, 2025, Honeywell International Inc. entered into a new 364-Day Credit Agreement with a consortium of banks, including Bank of America, JPMorgan Chase, and Wells Fargo, for a revolving credit commitment of $3 billion. This agreement, which replaces a previous $1.5 billion credit agreement, is intended for general corporate purposes and offers flexibility in repayment terms, allowing conversion to a term loan by March 2027. The agreement does not restrict dividend payments or include financial covenants, indicating a stable financial position for Honeywell.

Honeywell Announces Executive Changes Amid Leadership Transition

On February 14, 2025, Honeywell International announced significant executive changes. Ms. Robin L. Washington will resign from the board to assume a leadership role at Salesforce, Inc., without any conflict regarding Honeywell’s operations. Mr. Mike Stepniak will become Senior Vice President and Chief Financial Officer, effective February 17, 2025, succeeding Mr. Gregory P. Lewis, who will transition to Senior Vice President, Transformation and Senior Advisor.