One-glance verdict
Undervalued
$362.01 our estimate vs market $206.46
Wall Street consensus: $263.27 (-27.3% lower than our fair-value estimate)
43% below our estimate, below the bear case
Fundamentals snapshot
Honeywell International Inc.
HON · NMS · Industrials · Conglomerates
Current price
$206.46
52-week range
$195.87 - $260.28
Market cap
$65.44B
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 (20.8x) is higher than trailing (7.9x) - earnings are expected to drop.
- Risk Net debt grew 117.1% over 3 years.
What this company does
Honeywell International Inc.
Honeywell is a large industrial company that sells a wide range of products and services to make factories, buildings, and energy production safer and more efficient. It earns money by providing everything from smart thermostats and security systems for large buildings to automation software for warehouses and specialized technology for energy producers. Because its products are essential to so many core parts of the economy, the company's performance can offer a glimpse into broader industrial and construction trends.
How the company got here
Honeywell's story begins in 1885 with the invention of a thermostat for coal furnaces. The company grew over the next century by acquiring other companies and expanding its product lines, becoming a major player in aerospace and defense, especially after developing the first electronic autopilot for aircraft. A key turning point was the 1999 merger with AlliedSignal, a large aerospace and automotive company, which created the modern Honeywell International. Since then, it has continued to grow by purchasing companies that fit into its core areas and has spun off (separated into new, independent companies) some of its other businesses, like its home products and turbocharger divisions.
What it actually does
You might know Honeywell from the thermostat on your wall, but the company does much more than that. It's a massive industrial company that makes a huge variety of products and software for other businesses, rather than for everyday shoppers directly. Think of them as a company that provides the critical 'brains' and systems for airplanes, warehouses, and large commercial buildings to operate safely and efficiently. Their products range from aircraft engines and flight systems to building control systems, safety equipment for factory workers, and technologies for the energy industry.
Aerospace Technologies
This is one of Honeywell's largest and most well-known businesses, making up a significant portion of its sales. It builds and supplies all sorts of critical parts for airplanes, helicopters, and even spacecraft, selling to big manufacturers like Boeing and Airbus as well as to governments for military use. This includes everything from engines and cockpit electronics, often called avionics (the electronic systems used on aircraft), to flight control systems. A big part of this business is also the aftermarket (providing maintenance, spare parts, and services after the initial sale), which creates a steady stream of revenue.
Industrial Automation
This segment focuses on making factories, warehouses, and supply chains (the entire process of making and delivering a product) work more efficiently and safely. They sell things like sensors, software, and automated equipment that help companies manage their manufacturing and distribution operations. For example, they provide the systems that control processes in a refinery, the handheld scanners used in a warehouse to track packages, and personal protective equipment for industrial workers. This business helps other companies automate tasks, improve productivity, and keep their employees safe.
Building Automation
This part of Honeywell focuses on the technology inside large buildings like hospitals, airports, data centers, and office towers. They provide the systems that manage heating, ventilation, and air conditioning (HVAC), as well as fire detection, security alarms, and video surveillance. The goal is to make buildings smarter, more energy-efficient, and safer for the people inside. This segment sells both the physical products, like sensors and control panels, and the software that makes everything work together.
Energy and Sustainability Solutions
This segment provides advanced technologies and materials to companies in the energy sector, like oil refineries and petrochemical plants. A key part of this business, known as UOP, licenses (sells the rights to use) its technology and sells equipment and materials that help these facilities produce fuels, chemicals, and plastics more efficiently. As the world shifts towards cleaner energy, this division is also focused on developing solutions for renewable fuels, energy storage, and carbon capture, helping its customers adapt to the energy transition.
What management is betting on now
Honeywell's leadership is focusing the company's strategy on three major trends they believe will drive future growth: automation, the future of aviation, and the energy transition. They are investing heavily in software, like their 'Honeywell Forge' platform, which uses data to help industrial customers operate more efficiently and reduce costs. The company is also making strategic acquisitions (buying other companies) to strengthen its position in these key areas, such as purchasing businesses that enhance its building security and automation capabilities. This focus is meant to shift Honeywell from a traditional industrial manufacturer to a software-industrial company with more predictable, recurring revenue (income that is likely to continue in the future).
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 $362.01 vs current price $206.46
Wall Street consensus is the average analyst price target: $263.27 (-27.3% lower than our fair-value estimate).
Our most-likely fair value is $362.01 a share — about 75.3% above today's price of $206.46, 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 $13.16B Interest coverage 5.06x +4% vs HON Has roughly the same debt cushion as HON.
Total debt $9.69B Interest coverage 14.44x +195% vs HON Carries about 3.0x more debt cushion than HON.
Total debt $13.80B Interest coverage 9.13x +87% vs HON Carries about 1.9x more debt cushion than HON.
Total debt $9.48B Interest coverage 12.46x +155% vs HON Carries about 2.5x more debt cushion than HON.
Total debt $8.73B Interest coverage 11.56x +137% vs HON Carries about 2.4x more debt cushion than 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 (20.8x) is higher than trailing (7.9x) - earnings are expected to drop.
-
Net debt grew 117.1% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.2%).
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)
7.94x
Forward P/E
20.77x
P/B
3.53x
P/S
1.72x
EV/EBITDA
10.75x
PEG ratio
3.39x
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
1.4%
Payout ratio
36.1%
Last ex-div date
2026-08-14