Honeywell International Inc. (HON)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with durable earning power and ask what I am paying for it. Honeywell is a diversified industrial with automation, building, and energy businesses. Scale and installed-base service can create some stickiness, but the filed numbers do not show a consistent compounder. Revenue rose from $33.0 billion in fiscal year 2023 to $34.7 billion in fiscal year 2024 to $37.4 billion in fiscal year 2025, yet net income fell from $5.7 billion in fiscal year 2024 to $4.7 billion in fiscal year 2025. The computed Lynch category is slow grower—shrinking, with profit down 0.2% a year over five years. That is a yellow flag. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $9.7 billion and net income was $5.7 billion, but that follows fiscal Q1 2026, the quarter ended 2026-03-31, with net income of $821.0 million and fiscal Q4 2025, the quarter ended 2025-12-31, with a net loss of $115.0 million. Such volatility tells me not to capitalize one quarter. On returns, ROCE is only 5.72%, and D/E is 1.85; the 46.58% ROE likely reflects leverage and unusual earnings. Free cash flow is $4.0 billion, a 2.7% yield—thin. At $207.29 on 2026-10-13, the FairStock P/E of 7.97 and PEG of 0.03 look cheap, but those are distorted by the profit spike. The Graham Number is $185.04, putting the price about 12% above that conservative benchmark, and EV/EBITDA is 13.58. I would call it fair to expensive, not a bargain. I want consistent earning power, not an optical discount.

In plain English: Honeywell makes automation, building and energy equipment and services for industrial customers. Sales have grown only slowly, and profits have been uneven, with a very large jump in the most recent quarter that makes the cheap-looking headline numbers harder to trust. At the recent price, the shares look roughly fair to a little expensive compared with the company's cash flow and conservative asset value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer