Honeywell International Inc (HON) stock analysis
Honeywell International Inc (HON) clears 8 of this site's 8 mechanical value filters, 6 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $218.31 it trades 19.3% below this site's neutral DCF value (a margin of safety of +19.3%). Its earnings quality rates Strong and it returns +9.5% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Honeywell do?
Honeywell is a diversified industrial-technology company selling aerospace products, building controls and safety systems, and industrial automation and process technology.
What stands out about Honeywell?
- The share price implies 2.7% yearly growth. At $218.31, HON's free cash flow of $15.84 per share would have to grow 2.7% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for less growth than the baseline. Change the assumptions.
- No filter fails. HON passes 8 of the 8 value filters. See every filter.
- Strongest against peers: P/E ratio. At 8.0× (peer median 25.8×) it ranks 1st of 32 among industrials stocks this site tracks. See the ranking.
- Weakest against peers: revenue growth. At −0.1% (peer median 6.8%) it ranks 29th of 32 among industrials stocks this site tracks. See the ranking.
- Returns 9.5% of its value to owners a year. Dividends plus buybacks, minus the stock issued to staff, as a share of market value. See Shareholder Yield Leaders.
How has Honeywell's share price moved?
The interactive price chart needs JavaScript.
Is Honeywell undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) +19.3%
- Wall St. analyst rating Buy · 3.80/5 30 analysts this month: 5 strong buy, 14 buy, 11 hold, 0 sell, 0 strong sell (Finnhub). Down from 3.81 last month.
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.58 · accruals −2.3% of assets · 111% of profit arrived as cash · stock comp 0.5% of revenue · share count −1.9% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +9.5% net Latest fiscal year (2025): dividends 4.3% + buybacks 5.5% − stock comp 0.3%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 19%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $4.13 per $1 of new profit · Capital-hungry · but only 24% return on capital Operating profit $7.0B → $7.8B, capital needed $28B → $32B, 2016–2025 (3-year averages); return on capital now 24% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 0.38 · Well under fair P/E 8.0× ÷ 21.3% a year of growth behind it. 29th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light Capital-light growth: not cleared (profit grew 1.1×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 1 flag
- Standing vs. sector peers 5 of 7 measures above the median Compared with the 31 other other industrials stocks this site tracks: 5 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Honeywell compare with its peers?
5 of 7 measures sit above the median of the 31 other industrials stocks tracked here, 5 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 25.8× 8.0× ✓1st of 32
- Free-cash-flow yieldhigher is cheaper · peer median 4.1% 7.3% ✓3rd of 32
- Return on equityhigher is better · peer median 34% 54% ✓6th of 32
- Net marginhigher is better · peer median 13.7% 22.1% ✓5th of 32
- Revenue growthhigher is better, year on year · peer median 6.8% −0.1% ✕29th of 32
- Debt / equitylower is safer · peer median 0.87 1.83 ✕28th of 32
- Dividend yieldamong dividend payers · peer median 1.34% 4.44% ✓1st of 31
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and HON doesn't clear enough of it yet. In its favor: HON is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, earns many times its interest expense, so debt service isn't a worry, is trading below what a conservative discounted-cash-flow estimate says it's worth - his own "price is what you pay, value is what you get" test, not a fixed multiple ceiling, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: HON carries more debt relative to equity than he typically tolerates, and hasn't grown earnings per share fast enough over five years to impress him.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✓
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and HON falls short of his bar. In its favor: HON clears an even tighter PEG-under-1 bar he'd want for a stock growing this fast, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: HON is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up, and is leaning on more debt than he liked a growth story to carry.
- PEG < 1 (stricter for fast growers) ✓
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✕
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Honeywell pass?
- Market Cap > $25B $69.2B
- Trailing P/E < 25 8.02
- PEG Ratio < 1.5 0.38
- Price/Book < 8 3.73
- Price/Sales < 7 1.77
- EPS Growth YoY > -5% +628.0%
- vs 50-day MA (±12%) +2.7%
- vs 200-day MA (±12%) -2.7%
What is Honeywell's margin of safety?
+21% on 2026-10-07 → +19% on 2026-10-23 (5 weekly readings).
Where is Honeywell in its 52-week range?
What is the short interest in Honeywell?
7,856,282 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Honeywell? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +52%
- Short interest under 5% of float 2.5%
- Passes most of the 6 fundamental filters 6/6 passed
- Price run-up backed by value, not just momentum +15% off 52wk low
- Debt/equity stable since 2016 0.64 → 2.06
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Honeywell shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from HON's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Honeywell's 10-year financials show?
From HON's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Honeywell
What kind of company is Honeywell?
Honeywell is a diversified industrial-technology company selling aerospace products, building controls and safety systems, and industrial automation and process technology. This site groups it with Industrial Conglomerates stocks.
Is Honeywell trading above or below its DCF value?
At $218.31, HON trades 19.3% below this site's neutral DCF value of $270.52 per share, a margin of safety of +19.3%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Honeywell pass?
HON passes 8 of 8. It passes Market Cap > $25B ($69.2B), Trailing P/E < 25 (8.02), PEG Ratio < 1.5 (0.38), Price/Book < 8 (3.73), Price/Sales < 7 (1.77), EPS Growth YoY > -5% (+628.0%), vs 50-day MA (±12%) (+2.7%) and vs 200-day MA (±12%) (-2.7%). The 8-filter list shows every stock that passes all of them.
What growth is Honeywell's share price pricing in?
At $218.31, HON's free cash flow of $15.84 per share would have to grow 2.7% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for less growth than the baseline. Change the assumptions.
How much cash does Honeywell return to shareholders?
HON's net shareholder yield is +9.5%: the cash it returns through dividends and buybacks, minus stock-based compensation, as a share of its market value. Latest fiscal year (2025): dividends 4.3% + buybacks 5.5% − stock comp 0.3%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 19%. Its trailing dividend yield is 4.44%, paid out of 41% of its free cash flow; the dividend-sustainability check raises 0 of 6 flags. See Shareholder Yield Leaders and the Sustainable Dividend Screener.
How fast has Honeywell grown its revenue and profit?
From fiscal 2016 to fiscal 2025, HON's revenue fell from $39.3 billion to $37.4 billion, 0.5% a year. Net income went from $4.8 billion to $4.7 billion, and its net profit margin from 12.2% to 12.6%. Earnings per share went from $6.21 to $7.36 on today's share count, 1.9% a year. In fiscal 2025 it produced $5.4 billion of free cash flow (cash from operations minus capital spending), 14.5% of its revenue. All figures are from HON's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
Where do these numbers come from?
- Financial statements: Honeywell's 10-K annual report for the year ended Dec 31, 2025, filed Feb 17, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Honeywell International Inc analysis
This page shows every value-investing check the site runs on Honeywell International Inc (HON) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.