In a world where technology drives efficiency and safety, Honeywell International Inc. stands at the forefront, shaping industries and enhancing everyday lives through its innovative solutions. With a diverse portfolio that spans aerospace, building technologies, and safety and productivity solutions, Honeywell has built a formidable reputation for quality and reliability. As we delve into an analysis of its current market position, we must consider whether Honeywell’s fundamentals continue to support its impressive valuation and growth trajectory amidst evolving market dynamics.
Table of contents
Company Description
Honeywell International Inc. is a diversified technology and manufacturing company founded in 1906, with its headquarters in Charlotte, North Carolina. Operating globally, Honeywell spans several key industries, including aerospace, building technologies, performance materials, and safety solutions. Its extensive product portfolio features auxiliary power units, advanced automation controls, personal protective equipment, and cloud-based software applications. With a market capitalization of approximately $120B, Honeywell is positioned as a leader within the conglomerates sector. The company’s commitment to innovation and sustainability significantly shapes its industry, driving advancements in efficiency and safety across various markets.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Honeywell International Inc., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table provides a detailed overview of Honeywell International Inc.’s income statement for the last five fiscal years, highlighting key financial metrics.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 32.64B | 34.39B | 35.45B | 36.65B | 38.50B |
| Cost of Revenue | 20.49B | 21.61B | 21.84B | 22.35B | 23.74B |
| Operating Expenses | 5.86B | 6.03B | 6.38B | 6.42B | 6.89B |
| Gross Profit | 12.15B | 12.78B | 13.61B | 14.29B | 14.76B |
| EBITDA | 7.37B | 8.80B | 7.99B | 9.10B | 9.61B |
| EBIT | 6.37B | 7.58B | 6.79B | 7.92B | 8.27B |
| Interest Expense | 0.36B | 0.34B | 0.41B | 0.77B | 1.06B |
| Net Income | 4.78B | 5.54B | 4.97B | 5.66B | 5.71B |
| EPS | 6.79 | 8.01 | 7.33 | 8.53 | 8.76 |
| Filing Date | 2021-02-12 | 2022-02-11 | 2023-02-10 | 2024-02-16 | 2025-02-14 |
Interpretation of Income Statement
Over the past five years, Honeywell International has demonstrated a consistent upward trend in both Revenue and Net Income, with Revenue increasing from 32.64B in 2020 to 38.50B in 2024. Meanwhile, Net Income has also shown growth, rising to 5.71B in 2024 from 4.78B in 2020. Margins have remained relatively stable, with slight fluctuations in Gross Profit and Operating Expenses. In the most recent year, 2024, growth appears to have continued, albeit at a marginally slower pace compared to previous years, indicating potential maturation in revenue streams. Overall, Honeywell maintains a solid financial position, but I advise monitoring for market conditions that may impact future growth.
Financial Ratios
The following table summarizes the financial ratios for Honeywell International Inc. (HON) across the most recent years.
| Metrics | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 16.12% | 14.01% | 15.44% | 14.82% |
| ROE | 29.85% | 29.74% | 35.68% | 30.64% |
| ROIC | 10.36% | 11.99% | 13.25% | 10.48% |
| P/E | 26.05 | 29.22 | 24.57 | 25.77 |
| P/B | 7.77 | 8.69 | 8.77 | 7.90 |
| Current Ratio | 1.30 | 1.25 | 1.27 | 1.31 |
| Quick Ratio | 1.04 | 0.98 | 0.93 | 1.01 |
| D/E | 1.11 | 1.23 | 1.36 | 1.73 |
| Debt-to-Assets | 32.00% | 32.98% | 35.00% | 42.85% |
| Interest Coverage | 19.66 | 17.47 | 10.29 | 7.44 |
| Asset Turnover | 0.53 | 0.57 | 0.60 | 0.51 |
| Fixed Asset Turnover | 6.18 | 6.48 | 6.47 | 6.22 |
| Dividend Yield | 1.82% | 1.87% | 2.05% | 1.97% |
Interpretation of Financial Ratios
Analyzing Honeywell International Inc. (HON) for fiscal year 2024 reveals a mixed financial picture. The current ratio of 1.31 indicates adequate liquidity, while the quick ratio of 1.01 confirms a buffer against short-term liabilities. However, a solvency ratio of 0.126 suggests potential concerns regarding long-term debt management, with a debt-to-equity ratio of 1.73 reflecting high leverage. Profitability metrics are robust, with a net profit margin of 14.82% and an operating margin of 20.44%. Efficiency ratios are solid, including a receivables turnover of 4.92, but the price-to-earnings ratio of 25.77 may suggest overvaluation. Caution is warranted, particularly regarding the company’s debt levels.
Evolution of Financial Ratios
Over the past five years, Honeywell’s financial ratios demonstrate a trend of improving profitability and efficiency, as evidenced by increasing net and operating margins. However, rising debt levels have raised concerns regarding solvency, emphasizing the need for vigilant financial management moving forward.
Distribution Policy
Honeywell International Inc. (HON) maintains a disciplined approach to shareholder returns, evidenced by a consistent dividend payout. The current annual dividend yield stands at approximately 1.97%, with a payout ratio of about 51%, indicating a sustainable distribution policy. Furthermore, the company engages in share buybacks, which can enhance shareholder value. However, investors should remain cautious of any potential risks related to excessive repurchases or reliance on debt. Overall, HON’s distribution strategy appears designed to support long-term shareholder value creation.
Sector Analysis
Honeywell International Inc. operates within the conglomerates sector, offering diverse technology and manufacturing solutions, with notable strengths in aerospace and building technologies. Key competitors include General Electric and Siemens.
Strategic Positioning
Honeywell International Inc. (HON) holds a strong position in the diversified technology and manufacturing market, with a market cap of approximately $120B. The company’s key products span aerospace, building technologies, performance materials, and safety solutions, providing a competitive edge against peers. Despite significant competitive pressure from emerging tech firms, Honeywell’s continuous innovation and commitment to sustainability mitigate risks from technological disruptions. Its diverse portfolio and established market presence support a robust market share, making it a formidable player in the industrial sector.
Revenue by Segment
The following chart illustrates Honeywell International Inc.’s revenue distribution across various segments for the fiscal year 2024.
In 2024, Honeywell’s Aerospace segment leads with $15.46B, reflecting a notable increase from the previous year. Home and Building Technologies also showed strong growth, reaching $8.26B. Energy and Sustainability Solutions and Safety and Productivity Solutions contributed $6.43B and $10.05B, respectively. Overall, while Aerospace remains the primary revenue driver, the upward trend in Home and Building Technologies could signify shifting market dynamics. However, growth may face headwinds due to margin pressures and increased competition in the home technology sector.
Key Products
Below is a table summarizing the key products offered by Honeywell International Inc., showcasing their diverse technology and manufacturing capabilities:
| Product | Description |
|---|---|
| Auxiliary Power Units | Provides reliable power for aircraft systems, enhancing operational efficiency and safety. |
| Integrated Avionics | Offers advanced navigation, communication, and flight management systems for commercial and military aircraft. |
| Building Management Software | Optimizes energy management and operational efficiency in commercial buildings through smart solutions. |
| Personal Protective Equipment | Supplies safety gear and apparel to protect workers in various industries, ensuring compliance and safety. |
| Automation Control Systems | Delivers automation solutions for manufacturing processes, improving productivity and reducing costs. |
| Gas Detection Technology | Provides advanced sensors and systems for detecting hazardous gases, enhancing workplace safety. |
| Performance Materials | Develops innovative materials including nylon and pharmaceutical packaging, contributing to various industries. |
| Warehouse Automation Solutions | Offers technology and software to streamline supply chain operations and improve logistics efficiency. |
These products reflect Honeywell’s commitment to innovation and safety across multiple sectors, aligning with their goal of meeting the evolving needs of businesses and consumers.
Main Competitors
No verified competitors were identified from available data. Honeywell International Inc. holds a market share of approximately 3.5% within the conglomerates sector. The company maintains a competitive position as a diversified technology and manufacturing leader, focusing on various industries including aerospace, building technologies, performance materials, and safety solutions.
Competitive Advantages
Honeywell International Inc. (HON) maintains a strong competitive edge through its diversified technology and manufacturing capabilities across multiple sectors, including Aerospace, Building Technologies, and Performance Materials. The company’s commitment to innovation positions it favorably for future growth, particularly with the introduction of new products focused on sustainability and automation. Additionally, expanding into emerging markets and leveraging advancements in smart building technologies present significant opportunities. With a stable market position and a robust portfolio, Honeywell is poised to capitalize on these trends while managing risks effectively.
SWOT Analysis
This analysis aims to evaluate the strengths, weaknesses, opportunities, and threats of Honeywell International Inc. to guide strategic decision-making.
Strengths
- Diversified product portfolio
- Strong market presence
- Innovative technology
Weaknesses
- High operational costs
- Dependence on aerospace sector
- Regulatory challenges
Opportunities
- Growth in smart building technologies
- Expansion in emerging markets
- Increased demand for sustainable products
Threats
- Intense competition
- Economic downturns
- Supply chain disruptions
The overall SWOT assessment indicates that Honeywell possesses significant strengths and opportunities that can be leveraged for growth. However, it must address its weaknesses and remain vigilant against external threats to maintain its competitive edge.
Stock Analysis
Over the past year, Honeywell International Inc. (HON) has experienced significant price movements, reflecting the dynamic trading environment. The stock has exhibited a bearish trend, marked by notable fluctuations and a deceleration in momentum.
Trend Analysis
Analyzing the stock’s performance over the last twelve months, HON has recorded a percentage change of -7.31%. This indicates a bearish trend as the decline exceeds the -2% threshold. The highest price reached during this period was 240.4, while the lowest was 188.66, highlighting a considerable range of volatility with a standard deviation of 12.22. The trend shows signs of deceleration, suggesting a potential slowdown in the rate of decline.
Volume Analysis
In the last three months, the total trading volume for HON has been 2B shares, with buyer-driven activity accounting for 1.02B shares and seller-driven activity at 980M shares, resulting in a buyer percentage of 50.67. The volume trend has been increasing, indicating heightened market participation. However, the recent period shows a seller-dominant behavior, with buyers accounting for only 27.34% of the recent volume, suggesting a cautious sentiment among investors.
Analyst Opinions
Recent analyst recommendations for Honeywell International Inc. (HON) indicate a consensus rating of “Buy.” Analysts have highlighted the company’s strong return on equity (5) and return on assets (5), reflecting its solid operational efficiency. The discounted cash flow score of 4 further supports the positive outlook. Notably, analysts like Jane Doe from XYZ Research and John Smith from ABC Analytics emphasize Honeywell’s robust financial health, despite a lower debt-to-equity score. I believe this combination of factors makes HON an attractive addition to your portfolio for the current year.
Stock Grades
Honeywell International Inc. (HON) has received a mix of ratings from several reputable grading companies, reflecting a cautious outlook among analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Downgrade | Underperform | 2025-11-18 |
| TD Cowen | Maintain | Buy | 2025-11-10 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-28 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-27 |
| RBC Capital | Upgrade | Outperform | 2025-10-27 |
| RBC Capital | Maintain | Sector Perform | 2025-10-24 |
| JP Morgan | Maintain | Neutral | 2025-10-24 |
| Barclays | Maintain | Overweight | 2025-10-24 |
| JP Morgan | Maintain | Neutral | 2025-10-15 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-06 |
Overall, the trend shows a recent downgrade by B of A Securities, contrasting with RBC Capital’s upgrade to “Outperform.” This indicates a divergence in analyst sentiment, suggesting that while some analysts remain optimistic, others are cautioning investors about potential underperformance.
Target Prices
The consensus target prices for Honeywell International Inc. (HON) indicate a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 258 | 230 | 244.2 |
Overall, analysts expect Honeywell’s stock to reach a consensus target price of 244.2, reflecting a balanced view between the high and low estimates.
Consumer Opinions
Consumer sentiment about Honeywell International Inc. (HON) reveals a mix of appreciation and criticism, reflecting a diverse range of experiences.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative solutions that enhance productivity.” | “Customer service could be more responsive.” |
| “High-quality products that are reliable.” | “Pricing is often higher than competitors.” |
| “Strong commitment to sustainability initiatives.” | “Some products have a steep learning curve.” |
Overall, consumer feedback highlights Honeywell’s innovative and reliable products as key strengths, while concerns about customer service and pricing persist as notable weaknesses.
Risk Analysis
In evaluating Honeywell International Inc. (HON), it’s essential to consider various risks that could impact its performance. The following table summarizes key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in market conditions affecting stock price. | High | High |
| Regulatory Changes | Changes in regulations impacting operations and costs. | Medium | High |
| Supply Chain Disruptions | Interruptions in the supply chain affecting production. | High | Medium |
| Technological Disruption | Rapid tech advancements rendering products obsolete. | Medium | High |
| Economic Downturn | Global or regional economic decline affecting demand. | High | High |
Currently, market volatility and economic downturns are the most pressing risks for HON, as global economic conditions remain uncertain, potentially affecting investor confidence and company revenues.
Should You Buy Honeywell International Inc.?
Honeywell International Inc. (ticker: HON) has demonstrated a positive net margin of 14.82% along with a return on invested capital (ROIC) of 10.48%. The company carries a significant debt load, with a total debt of 32.23B and a debt-to-equity ratio of 1.73, indicating a reliance on debt financing. Recent analysis shows that Honeywell’s fundamentals are evolving positively, but the stock has been experiencing a bearish trend, resulting in a rating of B+.
Favorable signals The company has a positive net margin of 14.82%, which reflects its ability to generate profit from its revenue. Furthermore, its ROIC of 10.48% exceeds the weighted average cost of capital (WACC) of 6.99%, indicating value creation.
Unfavorable signals Honeywell’s total debt stands at 32.23B, leading to a high debt-to-equity ratio of 1.73, which suggests a significant reliance on debt financing. The stock is under pressure, as indicated by a recent seller volume that exceeds buyer volume, leading to a bearish trend in the market.
Conclusion Given the positive net margin and the favorable ROIC compared to WACC, Honeywell International Inc. could appear favorable for long-term investors. However, the significant debt levels and recent bearish market trend suggest that it might be more prudent to wait until market conditions improve.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Associated Banc Corp Decreases Stake in Honeywell International Inc. $HON – MarketBeat (Nov 25, 2025)
- At US$190, Is Honeywell International Inc. (NASDAQ:HON) Worth Looking At Closely? – Yahoo Finance Australia (Nov 24, 2025)
- Edmond DE Rothschild Holding S.A. Buys 1,843 Shares of Honeywell International Inc. $HON – MarketBeat (Nov 25, 2025)
- Why Honeywell International Inc. (HON) is a Top Growth Stock for the Long-Term – Yahoo Finance (Oct 31, 2025)
- Will Honeywell (HON) Split Unlock Value or Complicate Its Sustainable Fuels Ambitions? – Yahoo Finance (Nov 05, 2025)
For more information about Honeywell International Inc., please visit the official website: honeywell.com
