Honeywell International HON
Honeywell International is a diversified industrial conglomerate operating in aerospace, building technologies, performance materials and technologies, and safety and productivity solutions, selling products and services to industrial and commercial customers. Honeywell presents a mixed profile: an attractive valuation by P/E (8.17) and exceptional ROE (46.58%), but its high leverage (ND/EBITDA 3.03) and moderate cash conversion (30.67%) are weaknesses. The 263.90% earnings growth is a statistical mirage that does not reflect the underlying trend.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Honeywell International is a diversified industrial conglomerate operating in aerospace, building technologies, performance materials and technologies, and safety and productivity solutions, selling products and services to industrial and commercial customers. Honeywell presents a mixed profile: an attractive valuation by P/E (8.17) and exceptional ROE (46.58%), but its high leverage (ND/EBITDA 3.03) and moderate cash conversion (30.67%) are weaknesses. The 263.90% earnings growth is a statistical mirage that does not reflect the underlying trend.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 6.7 |
| Valuation | 6.5 |
| Growth | 7.5 |
| Dividend | 5.9 |
| Momentum | 4.9 |
| Risk & Context | 6.3 |
OVERALL SCORE: 6.2/10
Context and risks
The rise in 10-year Treasury yields (5.17%) is a drag on the valuation of a conglomerate with a forward P/E of 21.49, but its impact is moderated by the strength of the operating margin (20.25%) and cash generation. The main risk is leverage (ND/EBITDA 3.03) in a high-rate environment.
News considered in the analysis
- Brady Targets $14B Market After Transformative Honeywell IPS Acquisition — La adquisición de IPS por parte de Brady valida el valor de los activos de Honeywell, pero el impacto directo en HON es indirecto y moderado.
- Honeywell (HON) Stock May Be Undervalued After Marine Corps Security Win — Un contrato de seguridad con el Cuerpo de Marines refuerza la cartera de pedidos, pero su magnitud no es transformadora para un conglomerado de este tamaño.
- Why Honeywell International (HON) Is Back In The Spotlight — Titular genérico sin información nueva o cuantificable.
- 3M vs. Honeywell: Which Industrial Conglomerate is a Stronger Pick? — Comparativa genérica entre competidores sin información nueva sobre Honeywell.
- Is Itron’s (ITRI) High-Margin Software Transition Built to Last? — Noticia sobre un competidor sin relevancia directa para Honeywell.
Verdict: Hold. Business quality and P/E valuation are attractive, but leverage and cash generation limit short-term upside potential.
Main risk: High leverage (Net Debt/EBITDA of 3.03 and Debt/Equity of 185.37) in a rising interest rate environment, which makes refinancing more expensive and pressures financial health.
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