Honeywell International (HON) AI Stock Analysis

• Market Cap: $142.54B
• Dividend Yield: 2.04%
• Average Volume (3M): 3.21M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.75
• Revenue Growth: 6.30%
• EPS Growth: 0.81%
• Country: US
• Employees: 102,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): 2.51
• Shares Outstanding: 642,682,900
• 10 Day Avg. Volume: 3,043,651
• 30 Day Avg. Volume: 3,209,585
• PEG Ratio: -3.26
• Price to Book (P/B): 6.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.07
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 10.38
• Enterprise Value/Ebitda: 4.12
• 1Y Price Target: $242.90
• Price Target Upside: 7.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 80 Outperform
• Price Target: $258.00 ▲(13.97%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

Earnings Impact

The acquisition 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.

Mergers and Acquisitions

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

Negative Factors

Competitive Position

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

Conservatism in Margin Guidance

Management stressed that it continues to incorporate reciprocal tariffs and China 145% tariffs returning after 90-day pause in its guide, which is more conservative than most peers.

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. 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 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 income statement reveals efficient cost management, though there is a slight decline in operating efficiency. The balance sheet shows moderate leverage, and cash flows are positive, supporting growth and shareholder returns.

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
EBITDA	9.55B	9.61B	8.73B	8.00B	8.80B	7.37B
Net Income	5.69B	5.71B	5.66B	4.97B	5.54B	4.78B
Balance Sheet
Total Assets	65.64B	75.20B	61.52B	62.27B	64.47B	64.59B
Cash, Cash Equivalents and Short-Term Investments	12.01B	10.95B	8.10B	10.11B	11.52B	15.22B
Total Debt	25.26B	32.23B	21.54B	20.54B	20.63B	23.21B
Total Liabilities	48.59B	56.03B	45.08B	44.95B	45.22B	46.79B
Stockholders Equity	16.45B	18.62B	15.86B	16.70B	18.57B	17.55B
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: 226.38
• 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 226.38 is above the 20-day moving average (MA) of 225.18, above the 50-day MA of 216.83, and above the 200-day MA of 213.96, indicating a bullish trend. The MACD of 1.36 indicates Positive momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 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	$6.52B	18.91	22.84%	0.84%	-0.57%	116.12%
HON	80 Outperform	$142.54B	25.80	33.56%	2.04%	6.30%	0.81%
Sector *	63 Neutral	kr62.27B	12.42	1.54%	14.71%	0.04%	-3.90%
MMM	63 Neutral	$79.52B	18.66	94.75%	1.98%	-24.93%	―

Honeywell International Corporate Events

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.

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.