HON Honeywell International Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
HON trades at a discount to the industrials sector on forward earnings despite stronger profitability metrics than peers like PCAR and comparable leverage to CAT, suggesting undervaluation.
- Forward P/E of 18.08 below sector average of 23.61
- Price/Book of 7.53 justified by high ROE of 34.62%
- Price/Sales of 3.12 appears stretched relative to 7% revenue growth
- Lack of EV/EBITDA and EV/Revenue data limits enterprise-level valuation precision
Despite solid earnings acceleration and positive short-term price momentum (+4.9% over 6M, +3.2% over 1W), revenue growth remains in low-single digits, suggesting future upside hinges on margin expansion rather than top-line surge.
- Earnings growth of 32.4% YoY and 29.2% Q/Q indicates accelerating profitability
- Analyst target implies 22% upside, reflecting confidence in future execution
- Revenue growth of 7.0% is modest and lags CAT's 9.5%
- No visibility into innovation pipeline or end-market demand trends
Honeywell has demonstrated stable historical profitability and margin discipline, but its share price has lagged over 1Y and 3Y periods (-6.0% and +4.6% respectively), trailing high-flying peers like CAT and BA, despite solid fundamentals.
- Consistent profitability with operating margin of 18.50% and ROA of 6.66%
- Long-term dividend policy with 2.30% yield supports income investors
- No quarterly earnings surprise data available, preventing track record validation
- 1Y return of -6.0% underperforms both sector and broader market
HON’s balance sheet is more leveraged than peers like PCAR (0.82) and slightly above CAT (2.01), with limited public cash/debt data, raising concerns about financial flexibility in a downturn.
- Current ratio of 1.36 indicates adequate short-term liquidity
- Operating cash flow generation supports debt servicing and dividends
- Debt/Equity of 2.15 is elevated vs sector average of 1.42 and poses refinancing risk
- Quick ratio of 0.98 suggests limited cushion in near-term liquidity without inventory
Honeywell’s dividend is well-covered and sits at a competitive yield for the industrials sector, with a conservative payout ratio that supports long-term sustainability and capital return discipline.
- Dividend yield of 2.30% is attractive in the current rate environment
- Payout ratio of 47.68% indicates strong earnings coverage and room for future increases
- No data on dividend growth history or consistency of increases
- Ex-dividend date and payment frequency not disclosed
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for HON and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
HON
Honeywell International Inc.
Primary
|
+12.1% | +4.6% | -6.0% | -4.2% | +4.9% | +3.2% |
|
DE
Deere & Company
Peer
|
+96.1% | +21.9% | +22.4% | -9.8% | +6.2% | +1.8% |
|
UNP
Union Pacific Corporation
Peer
|
+20.5% | +13.6% | -3.1% | -2.4% | -1.2% | +0.7% |
|
ETN
Eaton Corporation plc
Peer
|
+225.4% | +125.9% | -1.6% | +7.4% | -7.7% | -5.7% |
|
LMT
Lockheed Martin Corporation
Peer
|
+41.6% | +8.0% | -11.2% | +0.9% | -6.7% | +1.6% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
HON
Honeywell International Inc.
|
BULLISH | $126.89B | 21.02 | 34.6% | 15.1% | $199.04 | |
|
DE
Deere & Company
|
NEUTRAL | $128.74B | 24.88 | 21.4% | 11.8% | $476.23 | |
|
UNP
Union Pacific Corporation
|
BULLISH | $132.29B | 18.93 | 41.6% | 28.7% | $223.02 | |
|
ETN
Eaton Corporation plc
|
BULLISH | $137.52B | 35.34 | 20.7% | 14.7% | $352.39 | |
|
LMT
Lockheed Martin Corporation
|
NEUTRAL | $107.78B | 25.98 | 62.8% | 5.7% | $465.77 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-28 | WEST KENNETH J | Officer | Stock Award | 2,344 | - |
| 2025-10-02 | WEST KENNETH J | Officer | Stock Award | 950 | - |
| 2025-08-27 | BOLDEA LUCIAN | Officer | Option Exercise | 36,181 | $6,718,550 |
| 2025-08-27 | BOLDEA LUCIAN | Officer | Sale | 42,149 | $9,339,396 |
| 2025-08-01 | LU SU PING | General Counsel | Stock Award | 710 | - |
| 2025-08-01 | CURRIER JAMES E | Officer | Stock Award | 1,375 | - |
| 2025-08-01 | WEST KENNETH J | Officer | Option Exercise | 2,759 | $477,451 |
| 2025-08-01 | STEPNIAK MICHAL | Chief Financial Officer | Stock Award | 745 | - |
| 2025-08-01 | WEST KENNETH J | Officer | Sale | 3,448 | $752,026 |
| 2025-07-29 | WEST KENNETH J | Chief Executive Officer | Stock Award | 635 | - |
| 2025-07-29 | STEPNIAK MICHAL | Chief Financial Officer | Stock Award | 616 | - |
| 2025-07-28 | HAMMOUD BILLAL | Officer | Stock Award | 627 | - |
| 2025-07-25 | CURRIER JAMES E | Officer | Stock Award | 662 | - |
| 2025-07-25 | WEST KENNETH J | Officer | Stock Award | 552 | - |
| 2025-05-30 | KAPUR VIMAL M | Chief Executive Officer | Stock Award | 1,851 | - |
Wall Street Analysts
Professional analyst ratings and price targets