Honeywell International Inc
Exchange: NASDAQSector: IndustrialsIndustry: Conglomerates
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more secure and sustainable.
Did you know?
Profit margin stands at 12.6%.
Current Price
$219.97
-1.01%GoodMoat Value
$125.95
42.7% overvaluedProfile
Valuation (TTM)
Market Cap$139.66B
P/E29.53
EV$163.24B
P/B10.04
Shares Out634.89M
P/Sales3.73
Revenue$37.44B
EV/EBITDA19.05
Honeywell International Inc (HON) Stock Analysis
GoodMoat Analysis
Honeywell is a high-quality industrial conglomerate with a strong competitive moat, but it is currently priced at a significant premium to its estimated fair value. The stock fails the valuation gate of the GoodMoat framework, indicating an unfavourable entry point for a value investor. Further investigation should focus on whether its premium can be justified by future growth acceleration.
Read full analysis
Honeywell International is a diversified industrial conglomerate operating across four key segments: Aerospace, Building Technologies, Performance Materials, and Safety & Productivity Solutions. The company's primary competitive advantages stem from its scale, vertical integration, and technology leadership in mission-critical systems, particularly in aerospace and building automation. Applying the GoodMoat framework, it likely scores well on moat criteria like Switching Costs, Vertical Integration, and Niche Dominance, suggesting a durable competitive position. Its financial quality is also strong, evidenced by a high ROE of 34.0% and a solid operating margin of 18.2%. However, the stock's current price of $225.79 is 79% above the GoodMoat Target of $125.95, indicating a deeply unfavourable valuation with a negative margin of safety. With a P/E of 30.3x and a negative revenue growth of -3.3% YoY, the valuation appears disconnected from current fundamentals. According to the Decision Framework, while the business likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate decisively. The combination of extreme overvaluation relative to the target and a contracting top line presents a high bar for justifying the current price. For a value investor, this signals that the stock is not attractively priced, though monitoring for a material price correction could make it a candidate for future analysis. Analysis based on data as of 2024-05-15.
Market Cap$139.66B
Current Price$219.97
P/E Ratio29.53
Forward P/E—
PEG Ratio-0.27
EPS$7.36
Book Value$21.90
P/B Ratio10.04
HON Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -1.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 22.1B
Revenue
36.7B
FY19
32.6B
FY20
34.4B
FY21
35.5B
FY22
33.0B
FY23
34.7B
FY24
37.4B
FY25
Net Income
6.1B
FY19
4.8B
FY20
5.5B
FY21
5.0B
FY22
5.7B
FY23
5.7B
FY24
4.7B
FY25
HON 52-Week Range
$182.08
$248.04
50-Day MA: $233.88200-Day MA: $210.34
Did you know?
Trading 43% above its estimated fair value of $125.95.
Honeywell International Inc (HON) Financial Summary
Honeywell International Inc (HON) is a Industrials company in the Conglomerates industry, listed on NASDAQ. The stock currently trades at $219.97 with a market capitalization of $139.66B.
Key valuation metrics include a P/E ratio of 29.53, price-to-book ratio of 10.04, and EPS of $7.36. The company reports a profit margin of 12.6% and return on equity of 34.0%.
HON Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $139.66B |
| P/E Ratio | 29.53 |
| EPS | $7.36 |
| P/B Ratio | 10.04 |
| P/S Ratio | 3.73 |
| EV/EBITDA | 19.05 |
| Dividend Yield | 2.13% |
| Profit Margin | 12.6% |
| Return on Equity | 34.0% |
| Debt/Equity | 2.49 |
HON Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $36.71B | $6.14B |
| FY20 | $32.64B | $4.78B |
| FY21 | $34.39B | $5.54B |
| FY22 | $35.47B | $4.97B |
| FY23 | $33.01B | $5.66B |
| FY24 | $34.72B | $5.71B |
| FY25 | $37.44B | $4.73B |
Honeywell International Inc (HON) Valuation
Based on GoodMoat's DCF model, Honeywell International Inc has a fair value estimate of $125.95. At the current price of $219.97, the stock appears 74.7% overvalued relative to our intrinsic value estimate.
HON Quality Indicators
Honeywell International Inc maintains a profit margin of 12.6% and an operating margin of 18.2%. Return on equity stands at 34.0%. The current ratio is 1.30. Debt-to-equity ratio is 2.49.
About Honeywell International Inc
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more secure and sustainable.
HON Free Cash Flow
Honeywell International Inc generated $5.45B in trailing twelve-month free cash flow, representing an FCF yield of 3.90%. This moderate FCF yield indicates reasonable cash generation.
HON Shares Outstanding
Honeywell International Inc has 0.63 billion shares outstanding at a share price of $219.97, giving it a market capitalization of $139.66B.
HON Recent Insider Trades
Recent insider transactions at Honeywell International Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Currier James E (Pres/CEO Aero Technologies) | SELL | 2,248 | $547725.20 |
| West Kenneth J (Pres/CEO Process Technologies) | SELL | 873 | $211877.10 |
| Lieblein Grace | SELL | 2,242 | $546442.66 |