# Honeywell International (HON.US)

Canonical: https://gigainvestors.com/s/HON

Analysis as of: 2026-10-16T07:29:05.943Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $210.50 per share; close as of 2026-10-15.

Estimated value: low $242.76 per share, central $272.96 per share, high $313.20 per share. Buy at or below the central value $272.96 per share. Valuation as of 2026-10-16T07:29:05.943Z; scenarios are not confidence intervals.

Expected annual return: 12.4% at the stated quote. About 12.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.15×

- FY2017: 0.16×

- FY2018: 0.16×

- FY2019: 0.19×

- FY2020: 0.17×

- FY2021: 0.18×

- FY2022: 0.18×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.18×

### moat: pass

- ROIC, median of available years: 50.3%

- ROIC, second-lowest year: 37.0%

- Typical minus recent gross margin: -2.2 pp

- Typical gross margin (annual median): 34.8%

- Recent gross margin (lower of latest and 3-year median): 36.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 19.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 56.3%

- FY2017: 77.4%

- FY2018: 77.0%

- FY2019: 61.2%

- FY2020: 48.6%

- FY2021: 48.5%

- FY2022: 52.0%

- FY2023: 46.4%

- FY2024: 28.3%

- FY2025: 37.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.07×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $28B

- Net income, five-year total: $27B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.5 pp

- Working capital / revenue, final three-year average: 20.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.06×

- FY2022: 1.09×

- FY2023: 1.08×

- FY2024: 1.05×

- FY2025: 1.09×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 77.0% vs 37.0%

- Per-share earnings: 6.34 to 8.88 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.0%

- Ordinary dilution, 5-year annual growth: -2.0%

- Market cap gain: $44B

- Cumulative retained earnings: $22B

- Diluted shares, 10-year annual growth: -2.0%

- Diluted shares, 5-year annual growth: -2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.3%

- Per-share value change: $2.55

- Per-share value, starting three-year median: $6.34

- Per-share value, ending three-year median: $8.88

- Buybacks concentrated in cheaper years (correlation): 0.24

- Average buyback yield: 2.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $12B

- Cumulative net income, 10 years: $51B

- ROIC, first three-year median: 77.0%

- ROIC, last three-year median: 37.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $6.51

- FY2017: $2.10

- FY2018: $9.42

- FY2019: $8.82

- FY2020: $7.05

- FY2021: $8.30

- FY2022: $7.62

- FY2023: $8.88

- FY2024: $9.13

- FY2025: $7.72

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.3%

- FY2017: -7.4%

- FY2018: 0.6%

- FY2019: -1.3%

- FY2020: -2.2%

- FY2021: -0.8%

- FY2022: -0.5%

- FY2023: 0.5%

- FY2024: -0.5%

- FY2025: -2.2%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 2% a year for ten years · sales +7.8%

Story as of 2026-10-16T09:58:53.617Z; price observation 2026-10-15.

Price needs cash profits to shrink 2% a year for ten years

- 2025-05-12: HON Q1 Earnings Call: Honeywell Tops Expectations, Focuses on Spin-Offs and Tariff Mitigation ([finance.yahoo.com](https://finance.yahoo.com/news/hon-q1-earnings-call-honeywell-183114520.html))

- 2026-01-29: Honeywell beats Q4 expectations as aerospace spin-off accelerates ([finance.yahoo.com](https://finance.yahoo.com/news/honeywell-beats-q4-expectations-aerospace-115241616.html))

- 2026-05-13: Honeywell CEO says Iran conflict and AI are boosting demand ([finance.yahoo.com](https://finance.yahoo.com/news/honeywell-ceo-says-iran-conflict-172716450.html))

- 2026-06-08: Honeywell shares slip after earnings outlook trails market expectations (HON) ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/honeywell-shares-slip-earnings-outlook-104458245.html))

- 2026-07-23: HON Q2 Earnings Beat on Automation Growth, Outlook Raised ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/hon-q2-earnings-beat-automation-163100906.html))

- 2026-08-11: Honeywell Slides 5% As Future Growth Guidance At Chicago Investor Event Dissapoints ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/honeywell-slides-5-future-growth-185552794.html))

### Sales · FY2024–2025

sales +7.8%; source https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm; observed 2026-02-17.

- FY2016: $39B 

- FY2017: $41B 

- FY2018: $42B 

- FY2019: $37B 

- FY2020: $33B 

- FY2021: $34B 

- FY2022: $35B 

- FY2023: $37B 

- FY2024: $35B 

- FY2025: $37B 

### Gross margin · FY2025

gross margin 36.9%; source https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm; observed 2026-02-17.

- FY2016: 29.6% 

- FY2017: 30.6% 

- FY2018: 30.5% 

- FY2019: 33.7% 

- FY2020: 32.1% 

- FY2021: 35.9% 

- FY2022: 37.0% 

- FY2023: 37.3% 

- FY2024: 38.5% 

- FY2025: 36.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in conglomerates; annual sales are USD 37.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm (filed 2026-02-17); FY2025: revenue 37442000000; grossProfit 13829000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HON.US: Honeywell International Inc. engages in the industrial automation, building automation, and energy and sustainability solutions businesses in the United States, Europe, and internationally. The Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies, including custom-engineered sensors and related services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. The Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and system upgrade services. The Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions, as well as connectivity, data integration, and software solutions. The company was formerly known as AlliedSignal, Inc. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

### Why customers stay

Margins ranged from 36.9% to 38.5% during 2023–25; it earns 50.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 37.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 38.5%.

- Source: https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 36.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.5632435579998468],[2017,0.7744706994328923],[2018,0.7703238902078796],[2019,0.6122834927515487],[2020,0.4860580080655589],[2021,0.4845745104361776],[2022,0.5198270631732457],[2023,0.4642777147016182],[2024,0.2826508276262295],[2025,0.3701674002808298]]; median 0.5029425356194023. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm (filed 2026-02-17); Gross margin observations: [[2021,0.35854268434519654],[2022,0.3699035696159702],[2023,0.3727838088483989]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 3.8 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 65000000; upkeep 1030000000; owner earnings 4812000000. Growth capex / owner earnings = 0.013507896924355778.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 0; upkeep 1031000000; owner earnings 1629000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 0; upkeep 828000000; owner earnings 7053000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 0; upkeep 839000000; owner earnings 6392000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 0; upkeep 906000000; owner earnings 4875000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 0; upkeep 895000000; owner earnings 5870000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 0; upkeep 766000000; owner earnings 5404000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 741000000; owner earnings 6093000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 871000000; owner earnings 5986000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm (filed 2026-02-17); FY2025: growth capex 0; upkeep 986000000; owner earnings 5131000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,1915000000],[2017,2119000000],[2018,2272000000],[2019,2442000000],[2020,2592000000],[2021,2626000000],[2022,2719000000],[2023,2855000000],[2024,2902000000],[2025,2976000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 3804000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HON.US SharesStats.PercentInsiders = 0.08099999999999999 percentage points; cache date 2026-10-16.

### What could break it

"A significant percentage of our sales and operations is in non-U.S. jurisdictions" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm (filed 2026-02-17); A significant percentage of our sales and operations is in non-U.S. jurisdictions

### What the price says

The price assumes cash profits shrink 2% yearly over ten years; actual growth was 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate -0.0694909269263857. Price 210.5; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 6.082932372022737 → FY2025 8.371541783146558. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $107.95 per share

- 2016-12: $109.76 per share

- 2017-01: $112.10 per share

- 2017-02: $117.95 per share

- 2017-03: $118.30 per share

- 2017-04: $124.24 per share

- 2017-05: $125.99 per share

- 2017-06: $126.28 per share

- 2017-07: $128.96 per share

- 2017-08: $131.00 per share

- 2017-09: $134.28 per share

- 2017-10: $136.58 per share

- 2017-11: $147.76 per share

- 2017-12: $145.29 per share

- 2018-01: $151.27 per share

- 2018-02: $143.16 per share

- 2018-03: $136.91 per share

- 2018-04: $137.07 per share

- 2018-05: $140.13 per share

- 2018-06: $136.47 per share

- 2018-07: $151.25 per share

- 2018-08: $150.69 per share

- 2018-09: $157.65 per share

- 2018-10: $143.15 per share

- 2018-11: $145.06 per share

- 2018-12: $130.60 per share

- 2019-01: $141.97 per share

- 2019-02: $152.29 per share

- 2019-03: $157.09 per share

- 2019-04: $171.63 per share

- 2019-05: $162.42 per share

- 2019-06: $172.58 per share

- 2019-07: $170.47 per share

- 2019-08: $162.72 per share

- 2019-09: $167.25 per share

- 2019-10: $170.74 per share

- 2019-11: $176.49 per share

- 2019-12: $174.96 per share

- 2020-01: $171.22 per share

- 2020-02: $160.30 per share

- 2020-03: $132.25 per share

- 2020-04: $140.26 per share

- 2020-05: $144.17 per share

- 2020-06: $142.92 per share

- 2020-07: $147.65 per share

- 2020-08: $163.64 per share

- 2020-09: $162.71 per share

- 2020-10: $163.05 per share

- 2020-11: $201.57 per share

- 2020-12: $210.25 per share

- 2021-01: $193.12 per share

- 2021-02: $200.02 per share

- 2021-03: $214.57 per share

- 2021-04: $220.47 per share

- 2021-05: $228.25 per share

- 2021-06: $216.82 per share

- 2021-07: $231.09 per share

- 2021-08: $229.24 per share

- 2021-09: $209.83 per share

- 2021-10: $216.10 per share

- 2021-11: $199.91 per share

- 2021-12: $206.11 per share

- 2022-01: $202.12 per share

- 2022-02: $187.56 per share

- 2022-03: $192.34 per share

- 2022-04: $191.28 per share

- 2022-05: $191.39 per share

- 2022-06: $171.81 per share

- 2022-07: $190.24 per share

- 2022-08: $187.17 per share

- 2022-09: $165.04 per share

- 2022-10: $201.67 per share

- 2022-11: $217.02 per share

- 2022-12: $211.83 per share

- 2023-01: $206.08 per share

- 2023-02: $189.27 per share

- 2023-03: $188.92 per share

- 2023-04: $197.54 per share

- 2023-05: $189.39 per share

- 2023-06: $205.11 per share

- 2023-07: $191.89 per share

- 2023-08: $185.77 per share

- 2023-09: $182.61 per share

- 2023-10: $181.15 per share

- 2023-11: $193.66 per share

- 2023-12: $207.29 per share

- 2024-01: $199.93 per share

- 2024-02: $196.44 per share

- 2024-03: $202.88 per share

- 2024-04: $190.51 per share

- 2024-05: $199.86 per share

- 2024-06: $211.08 per share

- 2024-07: $202.39 per share

- 2024-08: $205.51 per share

- 2024-09: $204.33 per share

- 2024-10: $203.31 per share

- 2024-11: $230.24 per share

- 2024-12: $223.29 per share

- 2025-01: $221.14 per share

- 2025-02: $210.44 per share

- 2025-03: $209.31 per share

- 2025-04: $208.07 per share

- 2025-05: $224.06 per share

- 2025-06: $230.20 per share

- 2025-07: $219.79 per share

- 2025-08: $216.97 per share

- 2025-09: $208.07 per share

- 2025-10: $211.15 per share

- 2025-11: $201.56 per share

- 2025-12: $204.60 per share

- 2026-01: $238.62 per share

- 2026-02: $255.47 per share

- 2026-03: $237.05 per share

- 2026-04: $224.78 per share

- 2026-05: $249.46 per share

- 2026-06: $223.90 per share

- 2026-07: $243.05 per share

- 2026-08: $213.53 per share

- 2026-09: $210.94 per share

- 2026-10: $207.29 per share

## Annual estimated value (USD per share)

- FY2016: low $79.95 per share, central $95.33 per share, high $109.33 per share

- FY2017: low $79.62 per share, central $88.85 per share, high $101.15 per share

- FY2018: low $99.12 per share, central $119.09 per share, high $136.69 per share

- FY2019: low $87.50 per share, central $97.79 per share, high $111.50 per share

- FY2020: low $103.45 per share, central $114.91 per share, high $130.18 per share

- FY2021: low $115.30 per share, central $129.15 per share, high $147.60 per share

- FY2022: low $119.19 per share, central $133.83 per share, high $153.35 per share

- FY2023: low $124.02 per share, central $143.95 per share, high $165.80 per share

- FY2024: low $123.52 per share, central $140.69 per share, high $161.12 per share

- FY2025: low $135.64 per share, central $151.82 per share, high $173.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/773840/000077384026000013/hon-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.