|HON Overview
HON

HONEYWELL INTERNATIONAL INC

Industrials • CIK: 0000773840

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Market Cap
$135.33B
P/E (TTM)
22.1x
Rev Growth (TTM)
Net Margin (TTM)
15.1%
FCF Yield (TTM)
4.6%
FCF Margin (TTM)
15.2%

LATEST EARNINGS

Q4 2025
15 days ago
View source
Revenue
Net Income
EPS
  • Fourth quarter sales of $9.8 billion, up 6% reported and 10% adjusted, with organic sales up 11%.
  • Fourth quarter orders grew 23% organically, driving backlog to over $37 billion.
  • Full-year adjusted EPS of $9.78, up 12% year over year.
  • Full-year free cash flow of $5.1 billion, up 20% year over year.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$6.2B
Q3 '25
$2.9B+187%
Q2 '25
$1.0B+194%
FCF Margin
TTM15.2%
Q3 '2528.0%+185%
Sector: 7.3%Top 25%
OCF Margin18.4%
OCF/NI1.22x
CapEx Coverage5.7x
FCF Yield4.6%
FCF Growth (2Y)
Cash Conversion Cycle
71 days
DSO: 75+DIO: 95DPO: 99

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM5.2%
Div Yield2.1%
+
Buyback (TTM)3.1%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)2.1%
FCF Payout Ratio47.1%
Free Cash Flow (TTM)$6.2B
Stock Repurchases (TTM)$4.2B
Capital Return / FCF115.4%
Est. Dividends Paid (TTM)$2.9B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
19.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
18.5%
Asset Turnover
0.53x
Leverage (1+D/E)
3.20x
D/E: 2.20x
DuPont: 31.5%19.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.49x
8Q:
Invested Cap Turn
1.04x
8Q:
CapEx Intensity
3.4%
8Q:
CapEx/Depreciation
0.85x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$40.7B
$10.4B0.5%
$10.4B5.4%
$9.8B2.6%
$10.1B3.7%
$9.7B1.6%
$9.6B5.2%
$9.1B3.5%
$9.4B
Operating Income
$9.1B
$2.4B1.7%
$2.4B4.8%
$2.3B7.0%
$2.1B8.1%
$2.3B4.4%
$2.2B5.0%
$2.1B9.0%
$2.3B
Net Income
$6.1B
$1.8B16.2%
$1.6B8.4%
$1.4B12.8%
$1.3B9.1%
$1.4B8.5%
$1.5B5.5%
$1.5B15.8%
$1.3B
Operating Cash Flow
$7.5B
$3.3B149.3%
$1.3B120.9%
$597.0M73.8%
$2.3B14.2%
$2.0B45.7%
$1.4B206.0%
$448.0M84.8%
$3.0B
Free Cash Flow
$6.2B
$2.9B186.8%
$1.0B193.6%
$346.0M81.7%
$1.9B9.9%
$1.7B54.5%
$1.1B417.2%
$215.0M91.7%
$2.6B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
22.1x
Valuation Lenses
Earnings
22.1x
vs sector
Cash Flow
26.4x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
1.1P/E per %ROIC
ROIC: 19.2%
Shareholder Returns
Dividend
2.1%
Buyback
3.1%
Total Yield
5.2%
Market Cap$135.33B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
100/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
35.4%
8Q:
Return on Invested Capital (ROIC)Top 25%
19.2%
8Q:
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 18.5%
Asset Turnover: 0.53x

Earnings Quality

Cash Conversion

1.22x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin36.9%

Capital Efficiency

Invested Capital Turnover1.04x

Working Capital

Cash Conversion Cycle71 days

Growth Quality & Momentum

Growth Rates

Revenue Growth YoY
N/A
OpInc Growth YoY
4.8%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
36.9%
Operating
22.5%
Top 25% in sector
Net
15.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.1 pts
FCF: 15.2% | Net: 15.1%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $23.61B
Interest Coverage
Leverage Metrics
Debt-to-Equity
2.20x
Balance sheet risk & solvency analysis