Honeywell International Inc. transforms everyday life by merging cutting-edge technology with essential manufacturing across diverse sectors. Renowned for its innovative solutions, Honeywell excels in aerospace, building technologies, and safety systems, establishing a solid reputation for quality and reliability. As the company continues to push boundaries in automation and sustainability, I invite you to consider whether its strong fundamentals and market position justify its current valuation and growth potential in the ever-evolving landscape of industrial conglomerates.
Table of contents
Company Description
Honeywell International Inc. (ticker: HON), founded in 1906 and headquartered in Charlotte, North Carolina, operates as a diversified technology and manufacturing leader within the conglomerates industry. The company provides innovative solutions across various sectors, including aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. Its extensive product portfolio includes advanced avionics, energy management systems, personal protective equipment, and cloud-based software applications, catering to diverse market needs globally. With around 102K employees, Honeywell stands out for its commitment to sustainability and innovation, continually shaping industry standards and driving technological advancements.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Honeywell International Inc. by examining its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes the income statement for Honeywell International Inc. (HON) over the past five years, indicating the financial performance and key metrics of the company.
| Metric | 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 | 12.77B | 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 five-year period, Honeywell has shown a steady increase in Revenue, growing from 32.64B in 2020 to 38.50B in 2024, indicating a compound annual growth rate (CAGR) of approximately 4.3%. Net Income has also trended upward, reflecting a consistent profitability pattern, although the growth rate has slightly moderated in the most recent year. Notably, Gross Profit and EBITDA margins have remained relatively stable, suggesting effective cost management. In 2024, while revenue growth has persisted, the marginal rise in Net Income compared to revenue highlights a potential increase in operating expenses that investors should monitor closely to ensure sustained profitability.
Financial Ratios
The following table presents key financial ratios for Honeywell International Inc. (Ticker: HON) over the past few years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 14.64% | 16.12% | 14.01% | 15.44% | 14.82% |
| ROE | 27.23% | 29.84% | 29.74% | 35.68% | 30.64% |
| ROIC | 9.86% | 10.36% | 11.99% | 13.25% | 10.48% |
| P/E | 31.34 | 26.05 | 29.22 | 24.57 | 25.77 |
| P/B | 8.53 | 7.77 | 8.69 | 8.77 | 7.90 |
| Current Ratio | 1.47 | 1.30 | 1.25 | 1.27 | 1.31 |
| Quick Ratio | 1.23 | 1.04 | 0.98 | 0.93 | 1.01 |
| D/E | 1.32 | 1.11 | 1.23 | 1.36 | 1.73 |
| Debt-to-Assets | 35.94% | 32.00% | 32.98% | 35.00% | 42.85% |
| Interest Coverage | 17.52 | 19.66 | 17.47 | 10.29 | 7.44 |
| Asset Turnover | 0.51 | 0.53 | 0.57 | 0.60 | 0.51 |
| Fixed Asset Turnover | 5.86 | 6.18 | 6.48 | 6.47 | 6.22 |
| Dividend Yield | 1.73% | 1.82% | 1.87% | 2.05% | 1.97% |
Interpretation of Financial Ratios
Honeywell International Inc. (HON) demonstrates a strong financial position based on its 2024 ratios. The current ratio stands at 1.31, indicating good short-term liquidity, while a quick ratio of 1.01 suggests sufficient liquid assets. However, the solvency ratio is relatively low at 0.126, raising concerns about long-term financial stability. Profitability ratios show strength, with a net profit margin of 14.82% and an operating margin of 20.44%, reflecting efficient cost management. Efficiency metrics like the receivables turnover ratio at 4.92 indicate effective revenue collection. However, the high debt-to-equity ratio at 1.73 could signal potential risks associated with leverage.
Evolution of Financial Ratios
Over the past five years, Honeywell’s financial ratios have shown a mixed trend. While profitability ratios have generally improved, liquidity ratios fluctuated, with the current ratio remaining around 1.30. The increasing debt-to-equity ratio suggests a growing reliance on debt financing, which warrants careful monitoring.
Distribution Policy
Honeywell International Inc. (HON) maintains a robust dividend policy, with a recent annual dividend yield of 1.97% and a consistent dividend payout ratio of approximately 51%. The company has demonstrated a steady trend in dividend payments, with a dividend per share of $4.46. Additionally, HON engages in share buyback programs, which can enhance shareholder value. However, potential risks include the sustainability of these distributions in a fluctuating market. Overall, the distribution strategy supports sustainable long-term value creation for shareholders.
Sector Analysis
Honeywell International Inc. operates in the diversified technology and manufacturing industry, offering a wide range of products across aerospace, building technologies, performance materials, and safety solutions, facing competition from major players like General Electric and Siemens.
Strategic Positioning
Honeywell International Inc. (HON) operates in a highly competitive environment within the conglomerates sector. Currently, it holds a significant market share in several key product categories, particularly in aerospace and building technologies. The company faces substantial competitive pressure from both established players and emerging disruptors leveraging advanced technologies. Moreover, ongoing technological disruptions, especially in automation and energy management, require continuous innovation. With a market cap of approximately $121.47B, Honeywell remains well-positioned to capitalize on growth opportunities while managing risks effectively.
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 remained the standout performer, generating $15.46B, while Home and Building Technologies saw growth to $8.26B. The Energy and Sustainability Solutions segment contributed $6.43B, reflecting a solid demand in this area. Notably, Safety and Productivity Solutions also posted strong results with $10.05B. Compared to 2023, the Aerospace segment showed an upward trend, but overall growth has moderated, suggesting potential concentration risks as the company navigates market fluctuations and demands.
Key Products
Below is a table highlighting some of the key products offered by Honeywell International Inc., which illustrate the company’s broad capabilities across various sectors.
| Product | Description |
|---|---|
| Auxiliary Power Units | Essential components for aircraft, providing electrical power when engines are off. |
| Integrated Avionics | Advanced systems for navigation, communication, and flight management in modern aircraft. |
| Building Management Software | Applications designed to optimize energy use and manage building systems for efficiency and safety. |
| Gas Detection Technology | Equipment that ensures safety by detecting harmful gases in industrial and commercial settings. |
| Automation Control Systems | Solutions that enhance operational efficiency in manufacturing and other industries through automation. |
| Personal Protective Equipment (PPE) | Gear designed to protect workers in hazardous environments, including helmets, gloves, and safety footwear. |
| Thermal Systems | Technologies for controlling temperature and climate in various applications, from aerospace to industrial. |
| Low Global-Warming Potential Materials | Innovative materials developed to reduce environmental impact in manufacturing and packaging processes. |
These products demonstrate Honeywell’s commitment to innovation and sustainability across multiple industries, positioning the company as a leader in technology and manufacturing.
Main Competitors
The competitive landscape for Honeywell International Inc. (HON) includes several prominent players in the conglomerates sector. Here are the main competitors, sorted by market capitalization:
| Company | Market Cap |
|---|---|
| Union Pacific Corporation (UNP) | 140B |
| Eaton Corporation plc (ETN) | 131B |
| Deere & Company (DE) | 128B |
| Parker-Hannifin Corporation (PH) | 112B |
| Lockheed Martin Corporation (LMT) | 106B |
| Automatic Data Processing, Inc. (ADP) | 106B |
| General Dynamics Corporation (GD) | 91B |
| Trane Technologies plc (TT) | 89B |
| 3M Company (MMM) | 89B |
| Northrop Grumman Corporation (NOC) | 78B |
These companies operate primarily in North America and globally, competing in various industrial sectors from aerospace and defense to automation and building technologies.
Competitive Advantages
Honeywell International Inc. (HON) boasts a diverse portfolio across multiple sectors, including aerospace, building technologies, and safety solutions, which mitigates risks associated with market fluctuations. The company’s strong emphasis on innovation positions it well for future growth, with opportunities in emerging markets and new product lines, particularly in automation and energy efficiency technologies. Additionally, Honeywell’s commitment to sustainability through low global-warming-potential materials further enhances its competitive edge, aligning with increasing regulatory demands and consumer preferences for greener solutions.
SWOT Analysis
This SWOT analysis provides a structured assessment of Honeywell International Inc. (HON) to aid in strategic decision-making.
Strengths
- Strong market position
- Diversified product portfolio
- Innovative technology solutions
Weaknesses
- High operational costs
- Dependence on aerospace sector
- Vulnerability to economic downturns
Opportunities
- Growth in smart building technologies
- Increased demand for automation
- Expansion in emerging markets
Threats
- Intense competition
- Regulatory challenges
- Supply chain disruptions
Overall, Honeywell’s robust strengths and growth opportunities position it well in the market. However, addressing its weaknesses and external threats will be crucial for maintaining competitiveness and ensuring long-term success.
Stock Analysis
Over the past year, Honeywell International Inc. (HON) has experienced notable price movements, culminating in a current bearish trend characterized by a percentage change of -4.86%. The trading dynamics indicate significant fluctuations, with a highest price of 240.4 and a lowest price of 189.29.
Trend Analysis
Analyzing the price trend over the past year reveals a percentage change of -4.86%, indicating a bearish trend. This trend is further confirmed by a recent decline of -8.62% from September 21, 2025, to December 7, 2025. The trend shows deceleration, with a standard deviation of 12.29 suggesting considerable volatility in stock prices. Notably, the stock has reached a high of 240.4 and a low of 189.29 during this period.
Volume Analysis
In the last three months, the total trading volume for HON has reached approximately 2.03B shares, with buyer-driven activity accounting for around 50.92% of the volume. The volume trend is increasing, yet recent data indicates a seller-dominant behavior, with buyers only representing 31.58% of the volume from September 21, 2025, to December 7, 2025. This suggests cautious investor sentiment as market participation leans more toward sellers in the short term.
Analyst Opinions
Recent analyst recommendations for Honeywell International Inc. (HON) reflect a consensus to buy, driven by strong fundamentals and solid performance metrics. Analysts highlight the company’s robust return on equity (5) and return on assets (5), which indicate effective management and profitability. The discounted cash flow score of 4 further supports growth potential. Notably, analysts suggest that the low debt-to-equity ratio (1) positions Honeywell favorably for future investments. Overall, the sentiment remains positive, with a B+ rating underscoring confidence in HON’s prospects for the current year.
Stock Grades
Honeywell International Inc. (HON) has recently received a mix of grades from various reputable grading companies. Here’s an overview of the current stock ratings:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2025-12-04 |
| 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 |
| Barclays | Maintain | Overweight | 2025-10-24 |
| JP Morgan | Maintain | Neutral | 2025-10-24 |
| JP Morgan | Maintain | Neutral | 2025-10-15 |
Overall, the trend indicates a mix of stability and caution, with some firms maintaining their ratings while others have downgraded their outlook. Notably, RBC Capital has upgraded its rating to “Outperform,” which is a positive sign amid the generally cautious sentiment.
Target Prices
The consensus target price for Honeywell International Inc. (HON) suggests a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 269 | 195 | 240.71 |
Analysts expect Honeywell’s stock to reach around 240.71, reflecting a strong belief in its growth potential.
Consumer Opinions
Consumer sentiment towards Honeywell International Inc. (HON) reflects a mix of satisfaction and concerns, showcasing the diverse experiences of its clientele.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative products that enhance efficiency.” | “Customer service can be slow to respond.” |
| “Reliable technology with great performance.” | “Some products are overpriced compared to rivals.” |
| “Strong commitment to sustainability.” | “Occasional quality control issues.” |
Overall, consumer feedback highlights Honeywell’s strong innovation and reliability, but concerns about customer service responsiveness and product pricing have been noted frequently.
Risk Analysis
Understanding the potential risks associated with investing in Honeywell International Inc. (HON) is crucial for informed decision-making. Below is a table outlining notable risks that could impact your investment.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in market conditions affecting stock price. | High | High |
| Regulatory Changes | New regulations impacting operations and profitability. | Medium | High |
| Supply Chain Disruptions | Interruptions in supply chains affecting production. | High | Medium |
| Cybersecurity Threats | Risks of data breaches impacting company operations. | Medium | High |
| Economic Downturn | Slowdowns in economic growth affecting demand for products. | Medium | High |
In summary, market volatility and regulatory changes are among the most significant risks for Honeywell, given the current economic climate and recent shifts in legislation. As an investor, I recommend maintaining a cautious approach, closely monitoring these factors.
Should You Buy Honeywell International Inc.?
Honeywell International Inc. (HON) has demonstrated a positive net profit margin of 14.82% and a return on invested capital (ROIC) of 10.48%, which exceeds its weighted average cost of capital (WACC) of 7.12%, indicating value creation. The company carries a total debt of 32.23B, resulting in a debt-to-equity ratio of 0.26, suggesting manageable leverage levels. With a current rating of B+, Honeywell’s fundamentals appear to be evolving positively, but investors may want to monitor its debt levels and market conditions closely.
Favorable signals
Honeywell International Inc. exhibits a favorable gross margin of 38.34%, a strong EBIT margin of 21.49%, and a positive net margin of 14.82%. Additionally, the company benefits from a favorable interest expense percentage of 2.75%, indicating effective management of debt costs. The return on equity stands at 30.64%, and both the return on invested capital (ROIC) at 10.48% and the weighted average cost of capital (WACC) at 7.12% suggest value creation.
Unfavorable signals
However, there are some unfavorable elements to consider. The price-to-earnings ratio is at 25.77, which may suggest overvaluation, while the price-to-book ratio stands at 7.9, indicating potential concerns in valuation. Furthermore, a high debt-to-equity ratio of 1.73 indicates a significant reliance on debt financing, which could elevate financial risk. Lastly, the net margin growth is negative at -4.01%, reflecting a decline in profitability growth.
Conclusion
In summary, while there are favorable indicators, the negative trend in the stock price of -4.86% suggests caution. Given the recent seller volume surpassing the buyer volume, it might be prudent to wait for buyers to return before considering any investment actions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Honeywell International Inc. $HON Shares Acquired by Marshall Wace LLP – MarketBeat (Dec 05, 2025)
- Analysts See 27% Upside Potential For Honeywell International Inc. (HON) – Yahoo Finance (Nov 29, 2025)
- General Industrial Machinery Stocks Q3 Highlights: Honeywell (NASDAQ:HON) – Finviz (Dec 04, 2025)
- Honeywell International Inc. $HON Shares Sold by 1832 Asset Management L.P. – MarketBeat (Dec 05, 2025)
- Honeywell (HON) to Support Major Expansion at Nigeria’s Dangote Refinery by 2028 – Yahoo Finance (Dec 02, 2025)
For more information about Honeywell International Inc., please visit the official website: honeywell.com
