One-glance verdict
Undervalued
$296.18 our estimate vs market $248.79
Wall Street consensus: $263.11 (-11.2% lower than our fair-value estimate)
16% below our estimate, below the bear case
Fundamentals snapshot
Honeywell International Inc.
HON · NMS · Industrials · Conglomerates
Current price
$248.79
52-week range
$195.87 - $260.28
Market cap
$78.85B
Balance sheet
Stretched
4.89x Stretched
Net debt $25.76B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.2% last year.
- Reward Returns 46.6% on equity, ahead of 50% of its peers.
- Risk Forward P/E (24.8x) is higher than trailing (9.6x) - earnings are expected to drop.
- Risk Net debt grew 117.1% over 3 years.
What this company does
Honeywell International Inc.
Honeywell builds the essential technology that helps run major parts of the economy, from controlling the climate in skyscrapers to making industrial factories more efficient and safe. The company profits by selling both physical equipment and the software to manage it across its building, manufacturing, and energy businesses. Because its products are so widespread, Honeywell's performance often reflects broader trends like industrial growth and the global push for energy efficiency.
How the company got here
Honeywell's story begins in 1885 with the invention of a thermostat for coal furnaces. Through a series of mergers and acquisitions over the next century, the company grew into a major industrial player. A key turning point was its involvement in World War II, where it developed advanced aviation technology, including the first electronic autopilot for bomber aircraft. In 1999, it merged with AlliedSignal, a large aerospace and automotive company, which significantly expanded its reach and product lines, but kept the well-known Honeywell name. Over the years, Honeywell has continued to evolve, spinning off some businesses to focus more on its core areas of aerospace, automation, and energy transition.
What it actually does
You might not buy Honeywell products directly at the store, but they are all around you, working behind the scenes. The company makes a huge range of products that are essential components in other things, from airplane engines to the systems that control the temperature and security in large buildings. They also create software and technology to make factories and warehouses run more efficiently and safely. Think of them as a company that provides the critical brains and nervous systems for many of the complex machines and buildings we rely on every day.
Aerospace Technologies
This is Honeywell's largest business, making everything from jet engines and cockpit electronics to landing systems for airplanes. Airlines and aircraft manufacturers buy these products to build new planes and keep their existing fleets running safely and efficiently. This segment also provides services and software to help airlines with things like flight planning and maintenance. It's a massive part of the company, and its technology is found on virtually every commercial and defense aircraft.
Building Automation
This division focuses on making buildings smarter, safer, and more energy-efficient. They sell things like fire alarms, security systems, and complex control systems that manage the heating, ventilation, and air conditioning (HVAC) in large buildings like hospitals, airports, and data centers. The customers are typically building owners and managers who want to lower their operating costs (the day-to-day expenses of running a building) and improve safety. This segment has been a strong performer for the company, with significant growth in its fire and security businesses.
Industrial Automation
This part of Honeywell helps factories, warehouses, and other industrial facilities run more smoothly and safely. They provide a wide range of products, including sensors, switches, and control systems that automate manufacturing processes. They also make personal protective equipment for workers, like gas detectors and safety gear. A big focus here is on software and connected solutions that help companies improve productivity and keep their workers safe.
Energy and Sustainability Solutions
This segment provides advanced technologies and materials to a variety of industries, with a focus on energy and sustainability. For example, through its UOP business, it licenses technology and provides equipment to oil refineries and petrochemical plants to help them produce cleaner fuels and chemicals more efficiently. They also manufacture high-performance materials used in things like refrigerants and pharmaceutical packaging. A growing part of this business is focused on helping companies with the energy transition, including technologies for renewable fuels and carbon capture.
What management is betting on now
Honeywell's leadership is focused on three major trends: automation, the future of aviation, and the global shift towards sustainable energy. They are increasingly emphasizing software and recurring revenue (income that is predictable and likely to continue in the future) from services. A key part of this strategy is their Honeywell Forge platform, an AI-powered software that helps customers in buildings, aviation, and industrial settings operate more efficiently and effectively. The company is also actively buying and selling businesses to better align with these high-growth areas.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.72B
FY2024 Q4
$1.89B
FY2025 Q1
$346.00M
FY2025 Q2
$1.02B
FY2025 Q3
$2.91B
FY2025 Q4
$1.15B
FY2026 Q1
$-873.00M
FY2026 Q2
$961.00M
Revenue
$9.72B
Net income
$5.68B
Diluted EPS
17.83
Operating cash flow
$1.28B
Free cash flow
$961.00M
Fetching…
Sources
Revenue
$9.14B
Net income
$821.00M
Diluted EPS
1.29
Operating cash flow
$-650.00M
Free cash flow
$-873.00M
Fetching…
Sources
Revenue
$9.76B
Net income
$-115.00M
Diluted EPS
-0.18
Operating cash flow
$1.20B
Free cash flow
$1.15B
Fetching…
Sources
Revenue
$10.41B
Net income
$1.82B
Diluted EPS
2.86
Operating cash flow
$3.29B
Free cash flow
$2.91B
Fetching…
Sources
Revenue
$10.35B
Net income
$1.57B
Diluted EPS
2.45
Operating cash flow
$1.32B
Free cash flow
$1.02B
Fetching…
Sources
Revenue
$9.82B
Net income
$1.45B
Diluted EPS
2.22
Operating cash flow
$597.00M
Free cash flow
$346.00M
Fetching…
Sources
Revenue
$9.17B
Net income
$1.28B
Diluted EPS
1.96
Operating cash flow
$2.28B
Free cash flow
$1.89B
Fetching…
Sources
Revenue
$9.73B
Net income
$1.41B
Diluted EPS
2.16
Operating cash flow
$2.00B
Free cash flow
$1.72B
Fetching…
Sources
Is it cheap or expensive?
Fair value $296.18 vs current price $248.79
Wall Street consensus is the average analyst price target: $263.11 (-11.2% lower than our fair-value estimate).
Our most-likely fair value is $296.18 a share — about 19.0% above today's price of $248.79, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $25.8B. Interest coverage 4.9x.
Net debt
$25.76B
Interest coverage
4.89x
Honeywell International Inc.'s profit covers its interest bill about 4.9 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
HON
BASELINE
Honeywell International Inc.
Total debt $34.96B Interest coverage 4.89x This is the baseline the peer rows are being compared against.
Total debt $38.86B Interest coverage 5.07x +4% vs HON Has roughly the same debt cushion as HON.
Total debt $20.23B Interest coverage 10.30x +111% vs HON Carries about 2.1x more debt cushion than HON.
Total debt $62.47B Interest coverage 5.54x +13% vs HON Has roughly the same debt cushion as HON.
Total debt $14.06B Interest coverage 9.13x +87% vs HON Carries about 1.9x more debt cushion than HON.
Total debt $13.16B Interest coverage 5.06x +4% vs HON Has roughly the same debt cushion as HON.
What you should know
The case for and against HON
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.2% last year.
-
Returns 46.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (24.8x) is higher than trailing (9.6x) - earnings are expected to drop.
-
Net debt grew 117.1% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
9.57x
Forward P/E
24.85x
P/B
4.25x
P/S
2.07x
EV/EBITDA
12.25x
PEG ratio
3.84x
Profitability
How much profit each dollar creates
Gross margin
36.5%
Operating margin
20.2%
Net margin
21.6%
ROE
46.6%
ROA
5.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.85x
Current ratio
1.21x
Quick ratio
0.76x
Total debt
$34.96B
Total cash
$9.20B
Growth
How the business has been compounding
Revenue TTM
$39.03B
Revenue 5Y CAGR
2.1%
EPS TTM
26.01
EPS 5Y CAGR
0.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.12B
Free CF TTM
$5.42B
FCF margin
13.9%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
36.1%
Last ex-div date
2026-08-14