What is the AI rating for HON?

HONEYWELL INTERNATIONAL INC (HON) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of HON?

Strong operating margin of 21.7% demonstrates operational efficiency and pricing power. Robust free cash flow of $5.4B with 14.5% FCF margin provides financial flexibility and capital allocation options. Excellent return on equity of 34.0% indicates efficient use of shareholder capital

What are the risks of investing in HON?

High leverage with debt-to-equity ratio of 2.09x creates financial risk and limits flexibility in downturns. Net income declined 0.9% YoY despite revenue growth, suggesting margin pressure or operational challenges. EPS declined 15.5% YoY indicating shareholder dilution or reduced earnings per share despite revenue growth

HON Stock Analysis - HONEYWELL INTERNATIONAL INC AI Rating & Fundamentals

Name: HONEYWELL INTERNATIONAL INC (HON) Stock
Brand: HONEYWELL INTERNATIONAL INC
Rating: 4 (1 reviews)

Investment Thesis

Honeywell demonstrates strong operational fundamentals with robust profitability metrics (21.7% operating margin, 12.6% net margin) and solid revenue growth of 7.8% YoY, supported by healthy free cash flow generation of $5.4B. However, the high leverage ratio of 2.09x and slight net income decline of 0.9% YoY present concerns that warrant careful monitoring of debt management and earnings sustainability.

HON Strengths

+ Strong operating margin of 21.7% demonstrates operational efficiency and pricing power
+ Robust free cash flow of $5.4B with 14.5% FCF margin provides financial flexibility and capital allocation options
+ Excellent return on equity of 34.0% indicates efficient use of shareholder capital
+ Solid revenue growth of 7.8% YoY shows market demand and business expansion
+ Substantial cash position of $12.5B provides liquidity buffer for obligations and strategic investments

HON Risks

! High leverage with debt-to-equity ratio of 2.09x creates financial risk and limits flexibility in downturns
! Net income declined 0.9% YoY despite revenue growth, suggesting margin pressure or operational challenges
! EPS declined 15.5% YoY indicating shareholder dilution or reduced earnings per share despite revenue growth
! Current ratio of 1.30x is relatively tight, potentially limiting short-term liquidity flexibility
! Long-term debt of $29.0B requires consistent cash flow generation to service obligations

Key Metrics to Watch

* Debt reduction progress and debt-to-equity ratio trend
* Operating margin stability and gross margin recovery potential
* Free cash flow consistency and conversion of revenues to cash
* Net income growth trajectory and earnings per share recovery
* Current ratio and working capital management
* Operating cash flow sustainability relative to capital expenditure needs

HON Financial Metrics

Revenue

$37.4B

Net Income

$4.7B

EPS (Diluted)

$7.36

Free Cash Flow

$5.4B

Total Assets

$73.7B

Cash Position

$12.5B

HON Profitability Ratios

Gross Margin 9.3%

Operating Margin 21.7%

Net Margin 12.6%

ROE 34.0%

ROA 6.4%

FCF Margin 14.5%

HON Balance Sheet & Liquidity

Current Ratio

1.30x

Quick Ratio

1.03x

Debt/Equity

2.09x

Debt/Assets

0.0%

Interest Coverage

N/A

Long-term Debt

$29.0B

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI