Honeywell International (HON) AI Stock Analysis

• Market Cap: $141.30B
• Dividend Yield: 2.04%
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.74
• Revenue Growth: 7.16%
• EPS Growth: 0.21%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 76
• Industry: Conglomerates
• EPS (TTM): 2.75
• Shares Outstanding: 634,896,550
• 10 Day Avg. Volume: 3,247,123
• 30 Day Avg. Volume: 3,617,382
• 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: 1.25
• Enterprise Value/Revenue: 4.42
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 17.97
• 1Y Price Target: $252.30
• Price Target Upside: 14.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: $251.00 ▲(13.45% Upside)

Honeywell's overall stock score reflects its strong financial performance and strategic initiatives, such as spin-offs and acquisitions, which position it for future growth. However, challenges with leverage, cash flow, and margin pressures in certain segments temper the outlook. The technical indicators suggest neutral momentum, and the valuation is moderate, providing a balanced risk-reward profile.

Positive Factors

Earnings

Aero aftermarket sales are recouping with underlying demand, reflecting Aero's improving supply chain situation.

Growth Potential

The outlook for the industry supports Honeywell’s medium-term target for mid-to-high single-digit Aerospace industry growth.

Valuation

Press reports suggest Honeywell may IPO Quantinuum at a $10bn valuation, seen as a positive.

Negative Factors

Financial Performance

Quantinuum is represented as a drag on EBITA in Corporate, roughly a $(150)mn annual drag.

Stock Performance

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

Strategic Fit

HON is evaluating strategic alternatives for the PSS and Warehouse units, as they don't seem to fit the secular themes that the new HON Automation wants to pursue.

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 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: Positive
• Last Price: 221.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 221.25 is above the 20-day moving average (MA) of 218.23, below the 50-day MA of 225.52, and above the 200-day MA of 217.47, indicating a neutral trend. The MACD of -1.23 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, 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
GE	82 Outperform	$290.50B	37.22	40.20%	0.47%	-32.80%	69.39%
VMI	77 Outperform	$7.43B	35.02	14.51%	0.68%	-0.15%	24.55%
HON	75 Outperform	$141.30B	25.08	34.60%	2.04%	7.16%	0.21%
ITW	73 Outperform	$77.61B	23.41	109.06%	2.25%	-1.40%	11.65%
JCI	70 Neutral	$70.97B	31.60	12.52%	1.35%	-13.10%	40.62%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
MMM	58 Neutral	$83.39B	21.68	96.00%	1.85%	-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.

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.