Honeywell International (HON) AI Stock Analysis

• Market Cap: $136.13B
• Dividend Yield: 2.11%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.77
• Revenue Growth: 7.48%
• EPS Growth: 9.55%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.82
• Shares Outstanding: 634,887,200
• 10 Day Avg. Volume: 4,867,064
• 30 Day Avg. Volume: 4,832,483
• 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: 1.18
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 10.62
• Enterprise Value/Ebitda: 15.51
• 1Y Price Target: $248.42
• Price Target Upside: 15.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• Price Target: $247.00 ▲(15.20% Upside)

Honeywell's overall stock score reflects strong financial performance and positive earnings call insights, which are the most significant factors. The company's strategic initiatives and increased guidance highlight confidence in future growth. Technical analysis and valuation are neutral, indicating stability but limited immediate upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth, driven by Aerospace and Building Automation, indicates strong market demand and effective sales strategies.

Strategic Realignment

The strategic realignment into four focused segments aims to enhance operational agility and strategic focus, potentially improving long-term competitiveness.

Order Growth

Record order growth reflects robust demand across segments, supporting future revenue streams and indicating strong market positioning.

Negative Factors

High Leverage

Significant leverage poses a risk to financial flexibility and could impact the company's ability to invest in growth opportunities if not managed carefully.

Margin Pressures

Margin pressures in key segments like Aerospace could affect profitability, necessitating cost management and efficiency improvements.

Industrial Automation Challenges

Challenges in Industrial Automation highlight potential vulnerabilities in adapting to market changes, impacting overall segment performance.

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 International demonstrates strong financial health with consistent revenue growth and profitability. However, increased leverage and declining free cash flow growth present potential risks. The company is well-positioned in its industry, but careful attention to debt management and cash flow generation is advisable to sustain long-term growth.

Income Statement

Honeywell International shows strong revenue growth with a TTM increase of 1.98% and consistent profitability. The gross profit margin remains robust at 37.80%, and the net profit margin has improved to 19.29% in the TTM, indicating efficient cost management. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a solid return on equity at 32.86%, reflecting strong profitability relative to shareholder investments. However, the debt-to-equity ratio has increased to 2.26, indicating higher leverage which could pose a risk if not managed carefully. The equity ratio stands at 20.52%, suggesting a balanced asset structure but with room for improvement in reducing debt levels.

Cash Flow

Operating cash flow remains stable, but free cash flow has declined by 1.90% in the TTM, which could impact future investments. The free cash flow to net income ratio is healthy at 80.21%, indicating good cash generation relative to profits. However, the operating cash flow to net income ratio is relatively low at 28.65%, suggesting potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.67B	38.50B	36.65B	35.45B	34.39B	32.64B
Gross Profit	15.10B	14.76B	14.29B	13.61B	12.77B	12.15B
EBITDA	10.33B	9.61B	9.10B	8.00B	8.80B	7.37B
Net Income	6.13B	5.71B	5.66B	4.97B	5.54B	4.78B
Balance Sheet
Total Assets	80.92B	75.20B	61.52B	62.27B	64.47B	64.59B
Cash, Cash Equivalents and Short-Term Investments	13.36B	10.95B	8.10B	10.11B	11.52B	15.22B
Total Debt	37.04B	32.23B	21.54B	20.54B	20.63B	23.21B
Total Liabilities	63.17B	56.03B	45.08B	44.95B	45.22B	46.79B
Stockholders Equity	16.78B	18.62B	15.86B	16.70B	18.57B	17.55B
Cash Flow
Free Cash Flow	6.16B	4.93B	4.30B	4.51B	5.14B	5.30B
Operating Cash Flow	7.49B	6.10B	5.34B	5.27B	6.04B	6.21B
Investing Cash Flow	-4.32B	-10.16B	-1.29B	-93.00M	-1.06B	-987.00M
Financing Cash Flow	-859.00M	6.84B	-5.76B	-6.33B	-8.25B	-81.00M

Honeywell International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.41
• 50DMA: Positive
• 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 Positive. The current price of 214.41 is above the 20-day moving average (MA) of 208.57, above the 50-day MA of 211.91, and below the 200-day MA of 214.63, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 64.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HON.

Honeywell International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	―	$136.13B	22.59	35.85%	2.11%	7.48%	9.55%
VMI	―	$8.24B	35.92	14.90%	0.63%	1.23%	-22.77%
GE	―	$326.77B	41.30	42.74%	0.44%	-19.21%	31.83%
ITW	―	$71.33B	23.86	91.71%	2.48%	-0.41%	-10.88%
JCI	―	$73.91B	33.54	12.52%	1.35%	-13.10%	40.62%
MMM	―	$89.51B	26.93	73.38%	1.73%	-13.09%	-20.63%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Honeywell International Corporate Events

Honeywell Reports Strong Q3 Results and Raises Guidance

Honeywell International is a diversified technology and manufacturing company, operating in sectors such as aerospace, building automation, industrial automation, and energy solutions, known for its innovative solutions and global reach.

Honeywell’s Earnings Call: Strong Growth Amid Challenges

Honeywell International’s recent earnings call painted a picture of a company experiencing robust growth tempered by specific challenges. The sentiment was largely positive, driven by strong sales and strategic achievements, such as the successful spin-off of Solstice and a notable capital raise for Quantinuum. However, challenges in segments like Energy and Sustainability Solutions (ESS) and Industrial Automation, along with margin pressures in Aerospace, provided a balanced view of the company’s current standing.

Honeywell Announces Strategic Business Realignment

On October 22, 2025, Honeywell International announced a strategic realignment of its business units, effective in the first quarter of 2026. This will result in a new reportable business segment called Process Automation and Technology, affecting the composition of the Industrial Automation segment. The realignment aims to streamline operations and will not impact the company’s historical financial position. Honeywell will report its financial performance based on four segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation, starting from the first quarter of 2026.

The most recent analyst rating on (HON) stock is a Hold with a $240.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Approves Spin-Off of Advanced Materials Unit

On October 16, 2025, Honeywell announced the approval of the spin-off of its Advanced Materials business into Solstice Advanced Materials, a specialty materials company. The spin-off is set for completion on October 30, 2025, with Honeywell shareholders receiving Solstice shares. This move is part of Honeywell’s transformation strategy, positioning Solstice as an independent leader in advanced materials, expected to enhance value for stakeholders.

The most recent analyst rating on (HON) stock is a Buy with a $265.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Sells Asbestos Liabilities to Delticus

On September 29, 2025, Honeywell International Inc. divested its legacy asbestos liabilities by selling Sterling Wander LLLP to Delticus, a corporate liability acquisition platform. This transaction, which involved approximately $1.68 billion in cash and related insurance assets, allows Honeywell to remove these liabilities from its balance sheet, improving its annual free cash flow by over $100 million in the coming years. The divestiture aligns with Honeywell’s strategy to simplify its portfolio ahead of its planned separation into three independent companies by the second half of 2026.

The most recent analyst rating on (HON) stock is a Buy with a $268.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Announces Spin-off of Advanced Materials Unit

On October 1, 2025, Honeywell International announced the spin-off of its Advanced Materials business into a new company, Solstice Advanced Materials Inc., with the distribution of shares set for October 30, 2025. Solstice, which will trade on Nasdaq under the ticker ‘SOLS’, aims to leverage its portfolio in refrigerants, semiconductor materials, and healthcare packaging to deliver long-term value. Additionally, Solstice completed a $1 billion senior notes offering, with proceeds held in escrow pending the spin-off’s completion. This strategic move is expected to enhance Honeywell’s market positioning and offer Solstice a platform for independent growth.

The most recent analyst rating on (HON) stock is a Buy with a $268.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

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.

The most recent analyst rating on (HON) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

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.

The most recent analyst rating on (HON) stock is a Hold with a $241.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

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.

The most recent analyst rating on (HON) stock is a Hold with a $230.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.