Honeywell International (HON) AI Stock Analysis

• Market Cap: $134.92B
• Dividend Yield: 2.1%
• Average Volume (3M): 5.01M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.76
• Revenue Growth: 6.30%
• EPS Growth: 0.81%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 77
• Industry: Conglomerates
• EPS (TTM): 2.51
• Shares Outstanding: 642,682,900
• 10 Day Avg. Volume: 4,910,642
• 30 Day Avg. Volume: 5,011,220
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.08
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $230.55
• Price Target Upside: 7.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Honeywell International's strong financial performance, particularly in income growth and cash flow, is a significant strength. While technical indicators and valuation present some concerns regarding potential overvaluation and bearish momentum, recent corporate events and strategic initiatives provide a favorable outlook for long-term growth. The company's earnings call reflects cautious optimism amid economic uncertainties.

Positive Factors

Acquisition

Honeywell's acquisition of Sundyne will enhance its position in UOP and Process Solutions, with expectations of significant sales synergies.

Business Strategy

The planned spin-off of Aero and the appointment of HON CEO Kapur to run Automation suggests strategic restructuring to focus on core business areas.

Earnings

Following solid, beat-and-raise 1Q25 earnings, analysts upgrade shares of Honeywell to Buy from Neutral and raise the price objective to $250.

Negative Factors

Tariffs

The company faces significant tariff headwinds, primarily due to exposure to China, which could impact profitability.

Valuation

Honeywell shares trade at a premium to the company's sum-of-the-parts, which does not suggest obvious upside.

Honeywell International Business Overview & Revenue Model

Company Description

Honeywell International Inc. is a diversified technology and manufacturing company that operates in multiple sectors including aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. The company provides innovative products and services ranging from aerospace systems and industrial products to advanced materials and building automation solutions.

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 shows robust financial health with strong income growth, solid balance sheet, and positive cash flow dynamics. The income statement indicates efficient cost management and solid earnings, while the balance sheet reveals moderate leverage. However, there is a need to monitor the slight decline in operating efficiency and increasing liabilities.

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
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
7.66B	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
75.20B	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
56.03B	45.08B	44.95B	45.22B	46.79B
	Stockholders Equity
18.62B	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: Positive
• Last Price: 214.61
• 50DMA: Positive
• 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 214.61 is above the 20-day moving average (MA) of 202.80, above the 50-day MA of 206.23, and above the 200-day MA of 210.93, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.29 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
HON	76 Outperform	$134.92B	24.61	33.56%	2.10%	6.30%	0.81%
VMI	75 Outperform	$6.09B	17.84	22.84%	0.81%	-0.57%	116.12%
MMM	65 Neutral	$74.28B	17.79	94.75%	2.05%	-24.93%	―
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%

Honeywell International Corporate Events

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.

Spark’s Take on HON Stock

According to Spark, TipRanks’ AI Analyst, HON is a Outperform.

Honeywell International’s strong financial performance, particularly in income growth and cash flow, is a significant strength. While technical indicators and valuation present some concerns regarding potential overvaluation and bearish momentum, recent corporate events and strategic initiatives provide a favorable outlook for long-term growth. The company’s earnings call reflects cautious optimism amid economic uncertainties.

To see Spark’s full report on HON stock, click here.

Honeywell Announces Leadership Changes Effective May 2025

On April 8, 2025, Honeywell International announced leadership changes effective May 5, 2025, with Su Ping Lu succeeding Anne T. Madden as Senior Vice President and General Counsel. Madden will transition to a new role as Senior Vice President, Portfolio Transformation and Senior Advisor, with a compensation package including a base salary of $750,000 and long-term incentive awards. These changes are part of Honeywell’s strategic efforts to enhance its leadership team and drive portfolio transformation.

Spark’s Take on HON Stock

According to Spark, TipRanks’ AI Analyst, HON is a Outperform.

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.

To see Spark’s full report on HON stock, click here.

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.