Honeywell (HON)
Industrials · $72.7B market cap · SEC CIK 0000773840
ahead of 38% of the S&P 500 · #47 of 79 in Industrials
Next reports on Jan 27, 2027, with analysts expecting $2.48 in earnings per share.
52-week range $196.98 to $496.36. 54% below its 52-week high and 16% above its low.
The case for HON
- Earns 41% back on shareholder equity.
- 23% of revenue drops through to net profit.
- Free cash flow of 7.5% of its market value a year: a lot of cash for the price.
- Reasonably priced for its growth: 10.3× earnings, where 3% a year of growth plus a 2.2% dividend would justify about 16×.
- Pays a modest 2.2% dividend.
The case against
- Down 41.0% over the past year.
- Current liabilities exceed current assets (ratio 0.96).
- Near the bottom of its 52-week range, 54% below the high. Falling prices usually have a reason; find it first.
- Growth is weak (32/100): revenue +4.2%, EPS +16.6%, +2.8% a year over five years.
- Stability is weak (38/100): beta 0.89, 4.5 years of cash flow to clear its debt, a 60% swing over the year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 76 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 32 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 82 |
| Momentumhow the price has behaved lately | 18 |
| Stabilityhow violently it moves, what it owes and what it pays you | 38 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +4.2% |
|---|---|
| Over 5 years | +2.8% a year |
| FY2025 revenue | $37.4B (+8%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $5.4B |
|---|---|
| Of revenue | 14% |
| Of profit | 115% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 38% |
|---|---|
| Operating margin | 29% |
| Net margin, FY24 → FY25 → now | 16.4% → 12.6% → 23.0% |
Debt vs. cash
Is the balance sheet healthy? Mostly, with some debt to carry
| Cash | $12.5B |
|---|---|
| Long-term debt | $29.0B |
| Net debt | $16.6B |
| Years to repay | 4.5 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 10.3× |
|---|---|
| Fair P/E for its growth | 16× |
| P/FCF | 13.4× |
| Forward P/E | 22.7× |
| EV / EBITDA | 9.2× |
At 10.3× earnings it trades below the 16× that 3% a year of growth plus a 2.2% dividend would justify. At 13.4× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Honeywell's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2020 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $37.4B | $34.7B | $33.0B | $35.5B | $34.4B |
| Change on the year | +8% | +5% | −7% | — | — |
| Free cash flow | |||||
| Free cash flow | $5.4B | $5.2B | $4.6B | $4.5B | $5.1B |
| Of revenue | 14% | 15% | 14% | 13% | 15% |
| Profit margins | |||||
| Operating margin | 21.7% | 22.1% | 22.9% | 22.6% | — |
| Net margin | 12.6% | 16.4% | 17.1% | 14.0% | 16.1% |
| Debt vs. cash | |||||
| Cash | $12.5B | $9.9B | $7.9B | $9.6B | $11.0B |
| Long-term debt | $29.0B | $27.3B | $18.4B | $16.9B | $16.1B |
| Net cash (debt) | −$16.6B | −$17.4B | −$10.4B | −$7.2B | −$5.1B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.