Honeywell International (HON) AI Stock Analysis

• Market Cap: $140.35B
• Dividend Yield: 2.02%
• Average Volume (3M): 3.53M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.76
• Revenue Growth: 7.16%
• EPS Growth: 0.21%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): 2.75
• Shares Outstanding: 634,896,550
• 10 Day Avg. Volume: 4,820,916
• 30 Day Avg. Volume: 3,528,292
• 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: 1.26
• Enterprise Value/Revenue: 4.42
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 17.97
• 1Y Price Target: $249.27
• Price Target Upside: 12.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 68 Neutral
• Price Target: $241.00 ▲(9.02% Upside)

Honeywell's overall stock score reflects strong financial performance and strategic initiatives, offset by bearish technical indicators and margin pressures. The company's proactive management and strategic focus on growth and transformation are positive, but investors should be cautious of the current technical weakness and cost-related challenges.

Positive Factors

Acquisitions and Strategy

The announced deal would expand Honeywell’s existing UOP catalyst portfolio, which is currently the market leader in catalyst and technology for process industries.

Aftermarket and Revenue Growth

Honeywell’s progress on retrofits, modifications, and upgrades has delivered over 100bps to the segment’s revenue CAGR from 2019-2024 and drove two-thirds of the revenue growth.

Technology and Market Influence

Honeywell estimates 60% of the world’s gasoline is produced using UOP technology, highlighting its significant market influence.

Negative Factors

Sales Performance

Since 2014, Aerospace Technologies' sales have lagged peers by an average of 5 percentage points per year, impacting its competitive position.

Share Performance

Shares traded off 6% due to unexpected pressure within Commercial Aero OE on customer destock and tariff price/cost.

Supply Chain Challenges

Aerospace Technologies' past dues exceed $2 billion and are not expected to fully unwind until 2027, indicating ongoing supply chain challenges.

Honeywell International Business Overview & Revenue Model

Company Description

Honeywell International Inc. is a diversified technology and manufacturing conglomerate headquartered in Charlotte, North Carolina. The company operates in four main business sectors: Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Honeywell provides an array of products and services ranging from aerospace components and systems, building control technologies, specialty chemicals, as well as safety equipment and productivity solutions.

How the Company Makes Money

Honeywell International generates revenue through its diversified business model across its four primary sectors. In Aerospace, it provides products and services for aircraft manufacturers, airlines, and defense contractors, generating income from sales and long-term service agreements. The Building Technologies segment offers building management systems, security, and fire safety products, earning revenue from both product sales and ongoing service contracts. Performance Materials and Technologies is involved in developing high-performance materials, process technologies, and automation solutions for industries like oil and gas, chemicals, and refining, with revenue flowing from product sales and licensing agreements. Lastly, the Safety and Productivity Solutions segment offers personal protective equipment, sensors, and advanced productivity software, contributing to revenue through direct product sales and software licensing. Key partnerships and innovation in these segments also play a significant role in driving Honeywell's financial performance.

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: Neutral
• Last Price: 221.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HON, the sentiment is Neutral. The current price of 221.06 is below the 20-day moving average (MA) of 230.36, below the 50-day MA of 228.87, and above the 200-day MA of 217.85, indicating a neutral trend. The MACD of -2.85 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 15.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HON.

Honeywell International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	77 Outperform	$7.25B	34.03	14.51%	0.71%	-0.15%	24.55%
HON	68 Neutral	$140.35B	25.10	34.60%	2.02%	7.16%	0.21%
Sector *	64 Neutral	$10.63B	16.03	5.49%	2.12%	2.74%	-23.62%
MMM	58 Neutral	$79.94B	20.87	96.00%	1.98%	-19.56%	325.26%

Honeywell International Corporate Events

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.

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.

The most recent analyst rating on (HON) stock is a Buy with a $227.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Announces Cooperation Agreement with Elliott Management

On May 28, 2025, Honeywell International Inc. announced a Cooperation Agreement with Elliott Investment Management, leading to the appointment of Marc Steinberg to its Board of Directors, effective May 31, 2025. This strategic move is part of Honeywell’s plan to separate into three independent companies, aiming to drive operational improvements and unlock significant value for shareholders.

The most recent analyst rating on (HON) stock is a Buy with a $227.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Elects Board and Approves Key Proposals

During its Annual Meeting of Shareowners on May 20, 2025, Honeywell International Inc. elected its board of directors, approved executive compensation, appointed Deloitte & Touche LLP as independent accountants for 2025, and approved a Liability Management Reorganization Proposal. However, a proposal for an Independent Board Chairman was not approved. These decisions reflect the company’s strategic directions and governance priorities, impacting its operational and financial oversight.

The most recent analyst rating on (HON) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Honeywell International stock, see the HON Stock Forecast page.

Honeywell Secures $6 Billion Loan for Business Separation

On May 7, 2025, Honeywell International Inc. entered into a Delayed Draw Term Loan Agreement with Bank of America and other agents for a loan facility of up to $6 billion. This agreement is intended to provide financial flexibility as Honeywell manages the separation of its Automation, Aerospace, and Solstice Advanced Materials businesses into independent public companies, while continuing to execute its capital deployment plan.