HON
HONEYWELL INTERNATIONAL INC
Industrials • CIK: 0000773840
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Market Cap
$124.66B
P/E (TTM)
26.4x
Rev Growth (TTM)
+7.8%
Net Margin (TTM)
12.6%
FCF Yield (TTM)
4.3%
FCF Margin (TTM)
14.5%
Filing Intelligence
6.0/10
10-K filed Feb 17, 2026 • FY 2025
Executive Summary
The company is undergoing significant portfolio transformation, including a planned separation of Honeywell Aerospace and divestitures/acquisitions, aiming to simplify the business structure and...
Key Concerns
- ●Gross margin percentage declined by 160 basis points in 2025 compared to 2024, influenced by increased acquisition costs and higher...
- ●Potential volatility from pension MTM adjustments.
- ●Macroeconomic and geopolitical risks (medium)
Key Strengths
- ●Honeywell experienced an 8% sales growth in 2025 to $37.4 billion, driven by strong performance in three of its four business segments,...
- ●Research and Development expenses increased as a percentage of sales, reflecting a strategic investment in new product development within...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$5.4B
Q4 '25
$1.1B-61%
Q3 '25
$2.9B+187%
FCF Margin
TTM14.5%
Q4 '2511.7%-62%
Sector: 4.7%Top 25%
OCF Margin17.1%
OCF/NI1.36x
CapEx Coverage6.5x
FCF Yield4.3%
FCF Growth (2Y)+6%
Cash Conversion Cycle
79 days
DSO: 82+DIO: 105−DPO: 107
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM5.4%
Div Yield2.3%
+Buyback (TTM)3.1%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)2.3%
FCF Payout Ratio54.0%
Free Cash Flow (TTM)$5.4B
Stock Repurchases (TTM)$3.8B
Capital Return / FCF125.0%
Est. Dividends Paid (TTM)$2.9B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
13.1%
Stable
-0.0% YoY-6.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
17.7%
8Q: 20.2%
Asset Turnover
0.48x
8Q: 0.49x
Leverage (1+D/E)
3.38x
D/E: 2.38x
DuPont: 29.0% ≈ 13.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.06x
8Q:5.95x
+50.8%
Invested Cap Turn
0.86x
8Q:0.88x
-4.8%
CapEx Intensity
2.3%
8Q:2.7%
CapEx/Depreciation
0.71x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $37.4B | $9.8B↑3.4% | $9.4B↑1.2% | $9.3B↑4.4% | $8.9B↓2.7% | $9.2B↑4.0% | $8.8B↑2.9% | $8.6B↑5.1% | $8.2B |
Operating Income | $8.1B | $1.1B↓54.5% | $2.4B↑1.7% | $2.4B↑4.8% | $2.3B↑109.5% | $1.1B↓53.0% | $2.3B↑4.4% | $2.2B↑5.0% | $2.1B |
Net Income | $4.7B | $-115.0M↓106.3% | $1.8B↑16.2% | $1.6B↑8.4% | $1.4B↑12.8% | $1.3B↓9.1% | $1.4B↓8.5% | $1.5B↑5.7% | $1.5B |
Operating Cash Flow | $6.4B | $1.2B↓63.4% | $3.3B↑149.3% | $1.3B↑120.9% | $597.0M↓73.8% | $2.3B↑14.2% | $2.0B↑45.7% | $1.4B↑206.0% | $448.0M |
Free Cash Flow | $5.4B | $1.1B↓60.7% | $2.9B↑186.8% | $1.0B↑193.6% | $346.0M↓84.1% | $2.2B↑26.9% | $1.7B↑54.5% | $1.1B↑417.2% | $215.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
26.4x
Volatile
8Q: 93.1x-69445%
High PEG ratio (3.4x) suggests expensive for growth
Valuation Lenses
Earnings
26.4x
vs – sector
Cash Flow
27.2x
EV/FCF vs –
Growth-Adj
3.4xPEG
Expensive for growth
Quality-Adj
2.0P/E per %ROIC
ROIC: 13.1%
Shareholder Returns
Dividend
2.3%
Buyback
3.1%
Total Yield
5.4%
Market Cap$124.66B
EV$147.24B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
94/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
28.4%
8Q:–
Return on Invested Capital (ROIC)Top 25%
13.1%
8Q:–
-6.2%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 17.7%
Asset Turnover: 0.48x
Earnings Quality
Cash Conversion
1.36x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin36.9%
Capital Efficiency
Invested Capital Turnover0.86x
Working Capital
Cash Conversion Cycle79 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
61/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
7.8%
OpInc Growth YoY
1.7%
EPS Growth YoY
-15.6%
FCF 3Y CAGR
6.3%
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
36.9%
Operating
21.7%
Top 25% in sector
Net
12.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.9 pts
FCF: 14.5% | Net: 12.6%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $20.10B
Interest Coverage
–
Balance sheet risk & solvency analysis