Honeywell International (HON) AI Stock Analysis

• Market Cap: $125.31B
• Dividend Yield: 2.24%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.72
• Revenue Growth: 7.48%
• EPS Growth: 9.55%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.66
• Shares Outstanding: 634,887,200
• 10 Day Avg. Volume: 3,626,646
• 30 Day Avg. Volume: 3,650,228
• 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: 1.28
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 10.62
• Enterprise Value/Ebitda: 15.51
• 1Y Price Target: $237.62
• Price Target Upside: 20.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 10.43
• Revenue Forecast (FY): $40.79B

• Rating: 77 Outperform
• Price Target: $218.00 ▲(10.45% Upside)

Honeywell International's overall stock score of 77 reflects its strong financial performance and positive earnings call guidance. While technical analysis shows mixed signals, the company's strategic initiatives and fair valuation provide a solid foundation for future growth. The most significant factors are the robust financial health and strategic achievements highlighted in the earnings call.

Positive Factors

Revenue Growth

Consistent organic sales growth indicates strong demand across key segments, supporting long-term revenue expansion and market presence.

Strategic Realignment

The realignment aims to streamline operations and enhance focus, potentially improving efficiency and strategic execution across core segments.

Cash Flow Generation

Robust cash flow growth and conversion reflect operational efficiency, providing financial flexibility for investments and shareholder returns.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially if interest rates rise or cash flow generation slows.

Margin Pressure

Margin pressures could impact profitability if cost inflation persists, necessitating cost control measures to maintain earnings.

Litigation Impact

Litigation-related charges can affect short-term financial results and indicate potential operational or contractual challenges.

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 generates revenue through several key segments: Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Aerospace segment includes products and services for commercial and defense aircraft, which contribute significantly to revenue through the sale of systems, engines, and aftermarket services. Building Technologies focuses on solutions for smart buildings, energy efficiency, and safety, driving income from system installations and maintenance contracts. Performance Materials and Technologies offers advanced materials and chemical products, generating revenue through sales to various industries. The Safety and Productivity Solutions segment provides personal protective equipment and software solutions, contributing to earnings through both product sales and recurring software subscriptions. Additionally, strategic partnerships and collaborations with other companies in technology and engineering sectors enhance Honeywell's market reach and revenue potential.

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: 197.37
• 50DMA: Positive
• 100DMA: Positive
• 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 197.37 is above the 20-day moving average (MA) of 194.64, above the 50-day MA of 195.18, and below the 200-day MA of 200.28, indicating a neutral trend. The MACD of 0.95 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 39.49 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	77 Outperform	$125.31B	20.79	35.85%	2.24%	7.48%	9.55%
GE	72 Outperform	$332.41B	42.02	42.74%	0.48%	-19.21%	31.83%
ITW	71 Outperform	$73.24B	24.50	91.71%	2.43%	-0.41%	-10.88%
VMI	71 Outperform	$8.12B	35.47	14.90%	0.63%	1.23%	-22.77%
JCI	70 Outperform	$74.60B	44.58	11.86%	1.27%	-10.19%	100.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	59 Neutral	$86.10B	25.90	73.38%	1.82%	-13.09%	-20.63%

Honeywell International Corporate Events

Honeywell Appoints Indra Nooyi as Independent Director

On December 10, 2025, Honeywell International announced the appointment of Indra Nooyi, former Chair and CEO of PepsiCo, as an Independent Director on its Board, effective January 1, 2026. Nooyi’s extensive experience in leading global businesses and her strategic insights are expected to enhance Honeywell’s board capabilities, supporting long-term growth and value creation for shareholders.

Honeywell Announces Leadership for Aerospace Spin-Off

On November 3, 2025, Honeywell International announced leadership appointments for its upcoming spin-off, Honeywell Aerospace, which will become an independent, publicly traded company by the second half of 2026. Jim Currier will serve as President and CEO, while Craig Arnold will be the non-executive Chairman of the Board. As a standalone entity, Honeywell Aerospace is positioned to be one of the largest pure-play aerospace suppliers, with significant market presence in propulsion, cockpit, and navigation systems. This strategic move is expected to enhance Honeywell Aerospace’s focus on innovation and capital allocation, benefiting stakeholders and shaping the future of aviation.

Honeywell Completes Spin-Off of Advanced Materials

On October 30, 2025, Honeywell International completed the spin-off of its Advanced Materials business, now operating as Solstice Advanced Materials, which will trade on Nasdaq under the symbol ‘SOLS’. This move is part of Honeywell’s strategy to transform into three independent companies, enhancing its market focus and long-term value for shareholders.

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.

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.

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.

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.