Honeywell International Inc.

Honeywell International Inc.

HONยทNASDAQ

$223.26

-5.6%
IndustrialsConglomerates

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.

At a Glance

Live Snapshot
Market Cap$141.47B
EPS7.4000
P/E Ratio30.17
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 30.2).

Valuation inputs: P/E 30.2, earnings yield +3.3%, momentum -5.6%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +30.6%, ROIC +9.2%).

Profitability stack: net margin +12.6%, ROE +30.6%, ROIC +9.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +79.2%, momentum -5.6%, net margin +12.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Honeywell International Inc. Market vs Earnings Trajectory

HON ยท NASDAQ

Loading price and EPS data...

Honeywell International Inc.

Honeywell International Inc. Fair Value Envelope

HON ยท NASDAQ

Our analysis suggests that HON has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $223.26, this represents a potential HIDDEN relative to our calculated worth for Honeywell International Inc..

Intrinsic Value
Current Price: $223.26
3Y+1.0%
5Y+9.0%
10Y+17.0%
3Y+6.0%
5Y+15.0%
10Y-5.0%
3Y-5.0%
5Y-1.0%
10Y-2.0%
3Y+21.0%
5Y+3.0%
10Y+16.0%
3Y+20.0%
5Y+2.0%
10Y+22.0%
3Y+19.0%
5Y+15.0%
10Y+37.0%
Honeywell International Inc.

Honeywell International Inc. Profit Bridge

HON ยท NASDAQ
Revenue37.44B
Cost of Goods Sold (23.61B)
Gross Profit13.83B
Operating Expenses (7.26B)
Operating Income6.57B
Interest Expense (1.34B)
Other Income/Expense-1.09B
Pretax Income5.48B
Income Tax (1.01B)
Net Income4.73B
Net Income
4.73B

Profitability Analysis

Gross Margin

36.9%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

17.5%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

12.6%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

18.4%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

36.93%
Gross Profit Margin
-4%
3Y-
5Y-1.0%
10Y-2.0%
17.54%
Operating Profit Margin
-9%
3Y-3.0%
5Y-9.0%
10Y-6.0%
12.63%
Net Profit Margin
-23%
3Y-10.0%
5Y-14.0%
10Y+3.0%
30.63%
Return on Equity
3Y+3.0%
5Y+12.0%
10Y+23.0%
6.38%
Return on Assets
-16%
3Y-20.0%
5Y-14.0%
10Y-28.0%
9.22%
Return on Invested Capital
3%
3Y-13.0%
5Y-7.0%
10Y-31.0%
HON

Honeywell International Inc. Cash Conversion Engine

HON ยท NASDAQ
Net Income4.83B
Depreciation & Amortization1.39B
Stock-Based Compensation0.00
Change in Working Capital-352.00M
Others429.00M
Capital Expenditures-986.00M
Free Cash Flow5.39B

Cash Flow Quality Analysis

FCF Conversion Rate

111.5%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

15.5%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+9.3%

Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.

Working Capital Impact

-$352.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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Honeywell International Inc. Funding & Solvency Profile

HON ยท NASDAQ
Cash & Cash Equivalents11.98B
Net Receivables8.06B
Inventory6.37B
Other Current Assets3.77B
Total Current Assets31 B
Property, Plant & Equipment4.66B
Goodwill & Intangible Assets27.64B
Long-Term Investments1.41B
Other Non-Current Assets9.48B
Total Non-Current Assets16 B
Total Assets
73.99B

Financial Health Analysis

Current Ratio

1.39x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

2.47x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

9 B

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

41% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

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Honeywell International Inc. Street Expectations Map

HON ยท NASDAQ

Wall Street analysts project that HON stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 246.85, with estimates ranging from a low of 195.00 to a high of 275.00.

Lowest Target
195.00
-12.66%
Consensus Target
246.85
10.57%
Highest Target
275.00
23.17%

The consensus 1-year price target stands at 246.85, with estimates ranging from a low of 195.00 to a high of 275.00.

Analyst Consensus Analysis

Upside Potential

+10.6%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

32.4% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

1.83x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Honeywell International Inc. Insider Positioning

HON ยท NASDAQ

During the last 12 months, insiders have sold $3.32M worth of HON shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

13.8K

3.32M

Net Activity

-3.3M

-$3.32M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
MRD

Mailloux Robert D.

Officer: Vice President & Controller

6.6K sharesโ€ข2 transactions

$1.56M

2
DDS

Davis D Scott

Director

2.4K sharesโ€ข1 transactions

$568K

3
CJE

Currier James E

Officer: Pres/Ceo Aero Technologies

2.2K sharesโ€ข1 transactions

$548K

4
LG

Lieblein Grace

Director

1.8K sharesโ€ข1 transactions

$435K

5
WKJ

West Kenneth J

Officer: Pres/Ceo Process Technologies

873 sharesโ€ข1 transactions

$212K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $3.32M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.54%
Dividend Yield
-11%
3Y-4.0%
5Y+29.0%
10Y-
ย 

hon Dividend History

HON
10Y CAGR +5%
Latest $1.19
Annual $5.76503
5 year growth trend
Last Period: +0%