HON

Honeywell Intl

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Conglomerates

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/23/26

Business Summary

Honeywell operates as a diversified industrial conglomerate, generating cash through engineered products, systems integration, and long-cycle industrial contracts across multiple end markets. Its moat is built on embedded infrastructure, recurring aftermarket service streams, and high switching costs once its systems are installed within customer operations. Scale allows it to spread R&D and operational costs across business lines while preserving a 34.00% operating margin profile. The combination of capital discipline, recurring service economics, and diversified industrial exposure enables durable free cash characteristics across cycles.

VALUATION

P/E

33.9

Market Cap ($M USD)

$149,409

Forward P/E

20.5

PEG

3.5

PRICE TO SALES

4

PRICE TO BOOK

10.7

EV / EBITDA

21

5-Year Average P/E

DIVIDEND

Yield

2.00%

Annual Payout

$4.76

Payout Ratio

61.90%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

5.10%

Financial Health & Profitability

Earnings Per Share

$6.98

Next Year EPS Growth Estimate

$11.47

Next Year Revenue Growth Estimate

6.00%

Return on Equity (ROE)

34.00%

Operating Margin

17.50%

Debt-to-Equity

2.6

Piotroski F-Score

5

Altman Z-Score

3.4

Return on Invested Capital (ROIC)

11.00%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Honeywell screens as a premium-priced industrial compounder, not a deep value play. A P/E of 33.9 paired with a Forward P/E of 20.5 suggests the market is pricing in a sharp earnings step-up, but a PEG Forward of 3.5 implies that growth is expensive relative to expectations. The Altman Z-Score of 3.4 signals solid balance sheet safety and low bankruptcy risk, reinforcing financial stability, yet at 4x sales and 10.7x book, investors are clearly paying up for quality. This is not distressed, not mispriced on panic — it’s a high-quality operator trading at a growth premium that requires execution to justify the multiple compression embedded in the forward earnings shift.

AI Exposure / Tech Reliance

As a Industrials conglomerate operating in complex engineered systems, Honeywell sits in a segment that directly benefits from automation, digital integration, and AI-enhanced industrial optimization. Companies in this space that maintain 34.00% operating margins are typically embedding software, controls, and systems intelligence into physical infrastructure. Its ability to sustain a 11.00% ROIC suggests it can integrate modern tech shifts without destroying capital efficiency.

The Bull Case

A GARP investor buys this because profitability is real and measurable. A 34.00% operating margin in Industrials is elite, and a 11.00% ROIC comfortably above cost of capital territory signals disciplined capital allocation. The Piotroski F-Score of 5 is neutral but stable, not distressed, while a 6.00% return on equity paired with modest 17.50% debt-to-equity keeps the capital structure conservative. Add a 2.6 yield with a 2.00% dividend per share and a 10+ five-year dividend growth rate, and you have an institutionally friendly compounder with a 3.4 Altman Z-Score that screams durability. For long-duration funds seeking resilient industrial exposure with manageable leverage and strong margins, this is a steady allocator’s name.

The Bear Case

The valuation is the obvious pressure point. A PEG Forward of 3.5 signals you are paying aggressively for growth, while a 33.9 trailing multiple leaves little room for disappointment. The discrepancy between EPS of 21 and EPS Next Year of 6.98 raises volatility concerns around earnings normalization, and with 5.10% of float shorted, there is a measurable cohort betting against the story. At 10.7x book and 4x sales, any slowdown in the projected $11.47 sales growth next year could trigger multiple compression, especially with a Current Ratio of 1.3 that is adequate but not fortress-like. This is a quality name priced for precision execution, not macro turbulence.

Market Sentiment & Smart Money

Short Interest %

1.40%

Analyst Consensus

1.92

Average Analyst Price Target

$253.92

Institutional Ownership %

80.80%

1-Year Beta

0.78

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

94.70%%

Distance to 52-Week Low

130.20%%