HON
Honeywell
$244.55
▲ 1.6%Updated Aug 7, 11:30 AM ET
HON at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 39/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 9.5% over the last 12 months
Market Cap
$72.83B
P/E
34.04x
Forward P/E (est.)
42.01x
ROE
29.1%
Revenue Growth
3.6%
EPS Growth
-19.0%
Profit Margin
11.4%
FCF Yield
4.3%
Debt / Equity
2.24x
ROIC
14.0%
Interest Coverage
—
Current Ratio
1.39x
Dividend Yield
2.1%
Implied Growth (rev. DCF)
1.4%
Rating Score
39/100
Honeywell (HON) is a large-cap company in the Industrial Conglomerates industry, part of the Industrials sector of the S&P 500, with a market value around $72.83B.
In its latest reported year it generated about $37.44B in revenue and $4.73B in net profit.
Our model rates HON Weak (39/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
32.1% average over the last 3 years
±1.2 pts around 31.6% across 5 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
14.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HON's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HON trades near $244.55, above its 50-day average ($221.14) and 200-day average ($214.57). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 62 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. HON's is $8.92 (~3.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month HON found buyers near $205.52 (support) and sellers near $252.00 (resistance); its 52-week range is $186.76–$252.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
2.1%
Revenue moved from $39.30B in 2016 to $37.44B in 2025, a -0.5% compound annual growth rate. The most recent year was roughly flat (3.6%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
36.8%
Operating Margin
21.7%
Net Margin
12.6%
ROE
29.1%
Honeywell keeps about 11.4% of each sales dollar as net profit, with a 36.8% gross margin and 21.7% operating margin. Return on equity is 29.1% and return on invested capital about 14.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$32.11B
Net Debt
$20.13B
Net Debt / EBITDA
2.48x
Debt / Equity
2.24x
Leverage: debt-to-equity is 2.2x, with a current ratio of 1.4x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $32.11B of total debt against $11.98B of cash.
Operating CF
$6.41B
Free Cash Flow
$5.42B
FCF Margin
14.5%
In the latest year Honeywell produced about $6.41B of operating cash flow and $5.42B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
2.1%
Per share (latest FY)
$4.58
Total paid (latest FY)
$2.98B
History on record
10 years
dividend uses 55% of free cash flow
63% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
34.04x
P/S
3.85x
P/B
8.55x
EV / EBITDA
—
HON trades at 34.0x trailing earnings (about 42.0x on estimated forward earnings), 3.8x sales, and 8.5x book value. Reverse-engineering today's price implies the market expects roughly 1.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$143.30
Current price
$244.55
Starting FCF (latest 10-K)
$5.42B
Growth, years 1–5
3.6%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where HON sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How HON stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), HON ranks #114 of 273 by our overall rating. It trades at roughly in line versus the sector on earnings (34x P/E vs. 32x median) with a higher return on equity (29.1% vs. 18.1%) and slower revenue growth (3.6% vs. 6.0%).
P/E vs sector
34x
median 32x
ROE vs sector
29.1%
median 18.1%
Growth vs sector
3.6%
median 6.0%
Sector rank
#114
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $244.55 today · expected CAGR 10% – 23%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $38.94B | $40.50B | $42.12B | $43.80B | $45.55B |
| Net income | $5.06B | $5.26B | $5.48B | $5.69B | $5.92B |
| EPS | $17.00 | $17.68 | $18.39 | $19.12 | $19.89 |
| Share price (low) | $339.98 | $353.58 | $367.72 | $382.43 | $397.72 |
| Share price (high) | $577.96 | $601.08 | $625.12 | $650.13 | $676.13 |
| CAGR (low–high) | 39% / 136% | 20% / 57% | 15% / 37% | 12% / 28% | 10% / 23% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for HON:
- Strong return on equity (29.1%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.3%) funds buybacks and dividends.
- Pays a 2.1% dividend on top of any price gains.
The case against HON:
- Elevated leverage (debt/equity 2.2x) adds financial risk.
- Our model's overall read is Weak (39/100).
Valuation risk — at 34.0x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 2.2x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Honeywell is a large-cap industrials business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 34.0x earnings, which our model scores Weak (39/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 31 Wall Street analysts covering HON recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
HON's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
HON — frequently asked questions
Is HON a good stock to buy?
We don't give buy or sell advice. Our model rates Honeywell Weak (39/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is HON's rating on The Stocks School?
Honeywell currently scores 39/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does HON's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Honeywell's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for HON calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this HON analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell HON. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.