Honeywell International Inc. Achieves High Guru Ratings

Honeywell International Inc. earns a strong 68% rating in the Patient Investor model, indicating stable profitability and low debt, despite mixed signals regarding expected returns. Investors should monitor this stock closely for future performance.

Date: 09-01-2025

AI Rating: 6

Analysis of Honeywell International Inc.

The report on Honeywell International Inc. (HON) indicates robust fundamentals according to the Patient Investor model based on Warren Buffett's strategies. The stock's rating of 68% suggests that the company has qualities that appeal to long-term investors, particularly its earnings predictability, low debt levels, and satisfactory return on equity, all of which are vital metrics for assessing financial health.

Earnings Per Share (EPS): Not directly mentioned in the report.

Revenue Growth: Not directly mentioned in the report.

Net Income: Not directly mentioned in the report.

Profit Margins (Gross, Operating, Net): Not directly mentioned in the report.

Free Cash Flow (FCF): The report states that Honeywell passes the Free Cash Flow test, indicating the company generates sufficient cash for operations and investments, which is a positive sign for investors.

Return on Equity (ROE): The report highlights Honeywell passing the Return on Equity assessment, signifying effective management performance that translates into shareholder value.

However, there are areas of concern with the firm prevailing. The Fail Mark on ‘Use of Retained Earnings’ and ‘Expected Return’ suggests that while the fundamentals are sound, growth expectations may not align perfectly with investor projections. This could lead to some cautious sentiment among potential investors, especially those seeking robust future growth.

Overall, the report presents a nuanced view of Honeywell as a solid player in the Aerospace & Defense industry, with a balanced outlook marked by strengths and notable caveats regarding future expectations.

Stocks: HON