Honeywell International Inc. (HON)
NEUTRALFundamental
61
Price
$215.69
Market Cap
$68.07B
Part 1 · What the company is worth
Overview
Honeywell makes physical equipment for several different industries at once: jet engines and cockpit electronics for aircraft, sensors and controls that run factories and refineries, systems that manage heating, security and fire safety in buildings, and process technology used in refrigeration and industrial plants. It is a large, diversified industrial manufacturer rather than a single-product company, though it is now in the middle of a multi-year process of separating into several more focused public businesses.
How it makes money
Honeywell sells hardware outright and, in aerospace especially, earns a second, longer-lasting stream from maintaining and repairing that equipment after the sale — aftermarket service revenue that tends to be steadier and more profitable than the original equipment sale. The company is also in the middle of splitting itself into separate public companies, having already spun off Advanced Materials, which will keep changing how its revenue is reported and grouped going forward.
Revenue by segment
Jet engines, avionics and cockpit systems sold to plane makers, airlines and defence customers — Honeywell's largest and fastest-growing segment.
Sensors, warehouse and process-control equipment sold to factories, logistics operators and other industrial customers.
Heating, security, fire-safety and building-management systems sold to commercial and residential property owners.
Process technology and chemical catalysts sold to refiners and industrial plants for emissions control and efficiency.
Competitive moat
Switching costs · NarrowOnce Honeywell equipment is certified onto an aircraft or embedded into a factory's control systems, replacing it means re-certification and integration work most customers avoid for the life of the plane or plant, and this locks in the higher-margin aftermarket service business. The advantage varies sharply by segment: it is strong in certified aerospace parts and weaker in more commoditized building and industrial products facing direct competitors.
What drives demand
CyclicalIndustrial Automation and Building Automation track factory investment and construction spending, which slow sharply in a downturn, while commercial aerospace production follows aircraft order backlogs that can also swing with airline profitability. The steadier counterweight is aerospace aftermarket service, which keeps flowing even when new-equipment orders slow, because existing planes and plants still need to be maintained.
Key risks
- Execution risk from splitting into three companies — Honeywell has already spun off its Advanced Materials business and plans to separate Aerospace as well; a multi-year corporate breakup carries real execution risk and can distract management from operations.
- Cyclical industrial and construction spending — Two of Honeywell's four segments sell into factory investment and building construction, both of which contract quickly when interest rates rise or the economy slows.
- Dependence on aircraft production and airline health — Aerospace results depend heavily on Boeing and Airbus production rates and on airline capital spending, both of which have proven vulnerable to supply-chain disruption and industry downturns.
- Legacy asbestos and environmental liabilities — Honeywell carries long-running legal and remediation liabilities from businesses it or predecessor companies operated decades ago, which continue to require cash payments and can produce adverse surprises.
The case for
Buyers argue that certified aerospace parts and their recurring aftermarket service provide a durable, high-margin core, that splitting into focused companies could let each business be run and valued on its own merits, and that Building and Industrial Automation still benefit from long-cycle contracts once they are won.
The case against
Sellers fear that a multi-year corporate breakup carries real execution risk and management distraction, that Industrial and Building Automation remain exposed to a slowdown in capital spending, and that legacy legal liabilities and aerospace supply-chain dependence could weigh on results independent of how well the core businesses perform.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$38.06B
Trailing 12 months (through 6/30/2026)
Net Income
$8.21B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$5.42B
Total Equity
$13.90B
Total Liabilities
$58.65B
Current Ratio
1.21
Interest Coverage
-
Debt/EBITDA
3.67
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$393.51
Current Price
$215.69
Margin of Safety
+45.2%
Fair Value Range
$255.78 - $531.24
Estimation Methods
Valuation Metrics
P/E Ratio
9.85
ROE
34.0%
P/B Ratio
3.67
P/FCF
16.97
Gross Margin
36.5%
ROIC
12.8%
Profitability Radar
Value Creation (Economic Moat)
ROIC
12.8%
WACC
6.5%
ROIC − WACC
+6.3 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (15)
- EPS shows upward trend
- Price CAGR 7.00%
- ROIC 12.8%
- Gross Margin 36.5%
- P/FCF 16.97
- Operating Margin 21.7%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- ROE 53.6%
- Analyst Consensus 65% Buy
- Share Dilution -1.9%
- Net Margin Trend 21.6% vs 15.8%
- Piotroski F-Score 5/9
Failed (11)
- EPS CAGR 4.81%
- P/B Ratio 3.67
- Debt/Equity ratio
- CapEx intensity
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Fairly valued)
- Revenue Growth 5Y 2.8%
- Earnings Surprise avg 1.8%
- PEG Ratio 2.43
- Earnings Quality (OCF/NI) 0.62
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Vimal M. Kapur | Chairman & CEO | 60 |
| Mr. Michal Stepniak | Senior VP & CFO | 47 |
| Mr. Billal M. Hammoud | President & CEO of Honeywell Building Automation | 52 |
| Mr. Jim Masso | President & CEO of Honeywell Process Automation | 40 |
| Mr. Harsh Bansal | Vice President of Investments | - |
| Mr. Robert D. Mailloux | VP, Controller & Principal Accounting Officer | 57 |
| Mr. Suresh Venkatarayalu | Senior VP, Chief Technology Officer & President of Honeywell Connected Enterprise | - |
| Mr. Mark Macaluso | Senior Vice President of Investor Relations | - |
Audit Risk
1
Board Risk
5
Compensation Risk
8
Shareholder Rights Risk
4
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for HON, sourced from Markets Gazette.
- 19d agoNEGATIVEHoneywell Aerospace lands in Wall Street’s ‘penalty box’ after gloomy guidance triggers 23% stock selloff
Honeywell Aerospace experienced a significant stock selloff, dropping 23% after issuing gloomy guidance shortly after its spin-off. This sharp decline indicates a substantial negative market reaction to the company's forward-looking statements, raising concerns about its future profitability and operational efficiency. Investors are likely reassessing their positions due to the unexpected pessimism from management, suggesting potential headwinds for the newly independent aerospace division. The market's response highlights a loss of confidence and may signal further challenges ahead for the company.
- 19d agoNEGATIVEHoneywell Aerospace lands in Wall Street’s ‘penalty box’ after gloomy guidance triggers 21% stock selloff
Honeywell International Inc. experienced a significant stock sell-off, plummeting 21% following the release of gloomy guidance for its newly spun-off Aerospace division. This sharp decline indicates a substantial negative market reaction to the company's forward-looking statements, raising concerns about future profitability and growth prospects for the aerospace segment. Investors are likely reassessing their positions in Honeywell due to the unexpected downturn in expected performance, potentially impacting the broader industrial sector's sentiment.
- 28d agoNEUTRALBrady Sells $800 Million of Bonds for Honeywell Spinoff Purchase
Honeywell International Inc. is set to divest its productivity solutions and services business, with Brady Corp. financing the acquisition through an $800 million private debt sale. While this move signals a strategic shift for Honeywell, potentially allowing it to focus on core growth areas, the immediate impact on Honeywell's stock is neutral as the transaction is debt-financed and involves a non-core asset sale. Investors will monitor how the proceeds are deployed and the long-term strategic benefits of this divestiture.
- 6/29/2026NEUTRALHoneywell Aerospace CEO on Separation, Defense Demand
Honeywell International Inc. has completed the spin-off of its aerospace business, which will now operate as a standalone entity. The CEO of the new aerospace and defense firm highlighted its critical role in both commercial and defense sectors, emphasizing its mission-critical products and services. This strategic separation aims to unlock value by allowing each business to focus on its specific market dynamics and growth opportunities. Investors will now evaluate the performance of the independent aerospace and defense company separately from Honeywell's remaining diversified businesses.
- 6/11/2026POSITIVEHoneywell Lays Out Automation Growth Roadmap
Honeywell International Inc. shares experienced a notable increase following its Investor Day event, where the company detailed an ambitious roadmap for automation growth. Key highlights included updated 2029 financial targets, projections for significant margin expansion, and the confirmation of its planned spin-off of the Aerospace division. This strategic clarity and forward-looking growth plan are likely to be well-received by investors, signaling confidence in Honeywell's future performance and its ability to enhance shareholder value through operational improvements and strategic restructuring.
- 6/10/2026NEGATIVEHoneywell Stock Drops As Oil Prices Surge Amid Trump's Threats
Honeywell International Inc. (HON) experienced a stock price decline on Wednesday, coinciding with a broader sell-off in the industrials sector. This downturn is attributed to escalating geopolitical tensions in the Strait of Hormuz, which have triggered a surge in oil prices due to supply concerns. While the surge in oil prices might benefit some energy-focused companies, it creates headwinds for industrials like Honeywell, which are sensitive to energy costs and broader economic stability. Investors are closely monitoring the situation for potential impacts on manufacturing and supply chain operations.
- 4/27/2026NEUTRALBanks to Join BMO-Led $1.8 Billion Debt Deal for Honeywell Spinoff
Honeywell International Inc. is divesting its productivity solutions and services business in a $1.8 billion deal, with Bank of Montreal leading the debt financing. The buyer is Brady Corp. This strategic move allows Honeywell to focus on its core aerospace, building technologies, and safety and productivity solutions segments. While the sale itself is a significant corporate action, the immediate market impact on Honeywell's stock is likely to be neutral as it represents a portfolio adjustment rather than a fundamental shift in core operations or profitability. Investors will monitor the integration of the divested business into Brady Corp. and Honeywell's future capital allocation strategies.
- 4/23/2026NEUTRALHoneywell Intl Reports Q1 2026 Results: Full Earnings Call Transcript
Honeywell International Inc. released its Q1 2026 earnings call transcript on April 23, 2026. While the transcript provides detailed insights into the company's financial performance, strategic initiatives, and future outlook, it does not contain specific forward-looking guidance or revised financial targets that would immediately impact its stock price. Investors can use this transcript to gain a deeper understanding of management's perspective on market conditions, operational efficiency, and growth drivers, but no definitive trading signal can be derived solely from the release of the transcript itself.
- 4/23/2026NEGATIVEHoneywell’s stock drops as sales miss confirms fears of Middle East shipping disruptions
Honeywell International Inc. reported sales that fell short of analyst expectations for the third consecutive quarter. The company cited ongoing disruptions in Middle East shipping routes as a primary cause, impacting its supply chain and delivery capabilities. This repeated miss raises concerns about the company's operational resilience and its ability to navigate geopolitical headwinds. Investors will be closely watching for management's strategies to mitigate these external pressures and restore consistent revenue growth in upcoming quarters.
via Markets Gazette