HON

HONEYWELL INTERNATIONAL INC

Industrials • CIK: 0000773840

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Market Cap
$142.06B
P/E (TTM)
34.7x
Rev Growth (TTM)
+6.1%
Net Margin (TTM)
10.9%
FCF Yield (TTM)
2.9%
FCF Margin (TTM)
11.0%

LATEST EARNINGS

Q1 2026
25 days ago
View source
Revenue
$9.14B
Net Income
$795.00
EPS
N/A
Operating
16.1% -3.2%
Net
8.7% -7.7%
  • Orders grew 7% organically, leading to a backlog of $38.3 billion, up 2% sequentially.
  • Adjusted EPS increased 11% to $2.45, driven by segment profit growth and lower share count.
  • Segment profit increased 6% to $2.1 billion, with segment margin expanding 90 basis points to 23.3% (excluding certain items).
  • Aerospace Technologies sales grew 3% organically, with orders up 6% and a book-to-bill of 1.1x.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$4.1B
Q1 '26
$-873M-176%
Q4 '25
$1.1B-61%
FCF Margin
TTM11.0%
Q1 '26-9.5%-181%
Sector: 4.8%Top 25%
OCF Margin13.7%
OCF/NI1.26x
CapEx Coverage5.1x
FCF Yield2.9%
FCF Growth (2Y)+4%
Cash Conversion Cycle
80 days
DSO: 81+DIO: 105DPO: 107

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM4.1%
Div Yield2.1%
+
Buyback (TTM)2.0%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)2.1%
FCF Payout Ratio71.2%
Free Cash Flow (TTM)$4.1B
Stock Repurchases (TTM)$2.9B
Capital Return / FCF143.1%
Est. Dividends Paid (TTM)$2.9B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
13.5%
Stable
+0.0% YoY-2.0%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
18.0%
8Q: 20.2%
Asset Turnover
0.49x
8Q: 0.49x
Leverage (1+D/E)
3.47x
D/E: 2.47x
DuPont: 30.6%13.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.51x
8Q:6.04x
+136.3%
Invested Cap Turn
0.87x
8Q:0.88x
Flat
CapEx Intensity
2.3%
8Q:2.5%
CapEx/Depreciation
0.74x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$37.7B
$9.1B6.3%
$9.8B3.4%
$9.4B1.2%
$9.3B4.4%
$8.9B2.7%
$9.2B4.0%
$8.8B2.9%
$8.6B
Operating Income
$8.0B
$2.1B94.3%
$1.1B54.5%
$2.4B1.7%
$2.4B18.2%
$2.0B85.7%
$1.1B53.0%
$2.3B4.4%
$2.2B
Net Income
$4.1B
$821.0M813.9%
$-115.0M106.3%
$1.8B16.2%
$1.6B8.4%
$1.4B12.8%
$1.3B9.1%
$1.4B8.5%
$1.5B
Operating Cash Flow
$5.2B
$-650.0M154.0%
$1.2B63.4%
$3.3B149.3%
$1.3B120.9%
$597.0M73.8%
$2.3B14.2%
$2.0B45.7%
$1.4B
Free Cash Flow
$4.1B
$-873.0M176.2%
$1.1B60.7%
$2.9B205.1%
$955.0M134.6%
$407.0M81.3%
$2.2B26.9%
$1.7B54.5%
$1.1B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
34.7x
Volatile
8Q: 94.6x-45296%
High PEG ratio (5.7x) suggests expensive for growth
Valuation Lenses
Earnings
34.7x
vs sector
Cash Flow
39.8x
EV/FCF vs
Growth-Adj
5.7xPEG
Expensive for growth
Quality-Adj
2.6P/E per %ROIC
ROIC: 13.5%
Shareholder Returns
Dividend
2.1%
Buyback
2.0%
Total Yield
4.1%
Market Cap$142.06B
EV$164.77B
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%
26.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
13.5%
8Q:
-2.0%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 18.0%
Asset Turnover: 0.49x

Earnings Quality

Cash Conversion

1.26x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin38.4%

Capital Efficiency

Invested Capital Turnover0.87x

Working Capital

Cash Conversion Cycle80 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
6.1%
OpInc Growth YoY
6.3%
EPS Growth YoY
-26.2%
FCF 3Y CAGR
4.0%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
38.4%
Operating
21.2%
Top 25% in sector
Net
10.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.1 pts
FCF: 11.0% | Net: 10.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $21.22B
Interest Coverage
Leverage Metrics
Debt-to-Equity
2.47x
Balance sheet risk & solvency analysis