Honeywell International (HON) AI Stock Analysis

• Market Cap: $145.74B
• Dividend Yield: 1.97%
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.76
• Revenue Growth: 6.30%
• EPS Growth: 0.81%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 94
• Industry: Conglomerates
• EPS (TTM): 2.51
• Shares Outstanding: 642,682,900
• 10 Day Avg. Volume: 3,511,926
• 30 Day Avg. Volume: 4,018,098
• PEG Ratio: N/A
• Price to Book (P/B): 7.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.04
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 10.71
• Enterprise Value/Ebitda: 4.26
• 1Y Price Target: $241.56
• Price Target Upside: 6.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 80 Outperform
• Price Target: $258.00 ▲(13.43%Upside)

Honeywell's overall score reflects a robust financial performance and positive earnings call results, supported by strong growth in key segments. The technical indicators show bullish momentum, although valuation metrics suggest caution due to potential overvaluation. Global economic uncertainties and tariff impacts pose risks, but strategic initiatives could optimize long-term growth.

Positive Factors

Acquisition Strategy

The acquisition of Johnson Matthey's Catalyst Technologies business is expected to be earnings-accretive in its first year, indicating a positive impact on HON's earnings.

Market Position

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

Stock Performance

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

Investor Uncertainty

Investors are looking for more detail surrounding the pending Aero spin and for clarity on management candidates.

Tariff Impact

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

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 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
39.21B	38.50B	36.66B	35.47B	34.39B	32.64B
	Gross Profit
14.94B	14.66B	13.67B	11.64B	11.00B	10.47B
	EBIT
8.02B	7.66B	7.55B	6.79B	7.58B	6.37B
	EBITDA
9.55B	9.61B	8.73B	8.00B	8.80B	7.37B
	Net Income Common Stockholders
5.69B	5.71B	5.66B	4.97B	5.54B	4.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.01B	10.95B	8.10B	10.11B	11.52B	15.22B
	Total Assets
65.64B	75.20B	61.52B	62.27B	64.47B	64.59B
	Total Debt
25.26B	32.23B	21.54B	19.57B	19.60B	22.38B
	Net Debt
13.50B	21.66B	13.61B	9.94B	8.64B	8.11B
	Total Liabilities
48.59B	56.03B	45.08B	44.95B	45.22B	46.79B
	Stockholders Equity
16.45B	18.62B	15.86B	17.32B	19.24B	17.79B
Cash Flow		Free Cash Flow
5.06B	4.93B	4.30B	4.51B	5.14B	5.30B
	Operating Cash Flow
6.25B	6.10B	5.34B	5.27B	6.04B	6.21B
	Investing Cash Flow
-10.26B	-10.16B	-1.29B	-93.00M	-1.06B	-987.00M
	Financing Cash Flow
1.96B	6.84B	-5.76B	-6.33B	-8.25B	-81.00M

Honeywell International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 227.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 227.45 is above the 20-day moving average (MA) of 221.73, above the 50-day MA of 210.08, and above the 200-day MA of 212.09, indicating a bullish trend. The MACD of 4.92 indicates Positive momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 78.03 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
VMI	80 Outperform	$6.49B	18.82	22.84%	0.77%	-0.57%	116.12%
HON	80 Outperform	$145.74B	26.05	33.56%	1.97%	6.30%	0.81%
MMM	66 Neutral	$79.72B	18.71	94.75%	1.93%	-24.93%	―
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%

Honeywell International Corporate Events

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.

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.

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.