Rankings Machinery & automation Honeywell

Honeywell

Machinery & automation · United StatesRank 236 of 829Prices 2 Nov 2026Model 1.4

15070100

A strong score: the model found few serious problems, but analysts see limited upside from here.

Biggest deductions

Multiples vs own history and peers−9
Margin and cash flow−4
Quality of growth−3

Strengths

Order intake+3
Quantum option (Quantinuum)+1

How the score is built

From 100 to 73, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

73Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 223.77 USD
Median analyst target: 254.00 USD
Upside to median: +13.5%
Analysts: 24
Target range: 186.00 – 290.00 USD
52-week change: +6%
P/E (trailing): 10.1
Forward P/E: 23.6
PEG: 1.52

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 4 findings−10 of −30

Margin and cash flow
The segment margin is 19.0% in Q2 and 20.1–20.5% for 2026. That is below Emerson and Rockwell. FCF of about $2.0bn on $19.9bn revenue gives only about a 10% FCF margin and about 75% conversion of adjusted earnings.
sec.gov
−4
Quality of growth
Organic growth is only 3–4% (the range has been narrowed from 3–6%), and revenue guidance has been cut to $19.8–20.0bn. Industrial Automation has shrunk from $10.8bn (2023) to $7.6bn TTM, partly through divestments (PSS, WWS).
marketbeat.com
−3
ROIC trend
ROIC has fallen every year from 21.4% (2021) to 13.5% TTM. Acquisitions (incl. $8.9bn in 2024 and Johnson Matthey Catalyst Technologies at about 13x EBITDA in July) have diluted the return.
stockanalysis.com
−2
Capital allocation
The portfolio is constantly changing (three companies, divestments and acquisitions at once). The dividend has been reset to $0.70 per quarter after the split vs $1.19 before (equivalent to $2.38 on the new share count).
honeywell.com
−1

Price

Today's multiples against the company's own history and its peers. · 1 finding−9 of −35

Multiples vs own history and peers
Price $207.73 is about 25x the 2026 guidance for adjusted EPS ($8.20). Forward P/E was 19.1-24.3 in 2021-25 (stockanalysis: 22.8 forward). P/FCF of about 33x guided FCF ($65.8bn vs $2.0bn) is at the top of 22.8-32 in 2021-25. That is in line with or above automation peers, even though growth is lower.
stockanalysis.com
−9

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−8 of −35

Debt
Consolidated debt was $34.0bn vs $9.2bn of liquidity at Q2 (debt/EBITDA 4.0 and rising from 2.3 in 2021). The rating before the spin-off was A3/A-/BBB+. It is unclear how much debt went with Aerospace.
sec.gov
−3
Quantinuum stake
Honeywell kept about 47% of Quantinuum (IPO at $60 on 4/6, opened at $68). The price has fallen to about $41 (market cap $10.9bn, EV/sales 383x and a $171m loss TTM). The stake is now worth about $5.1bn against $7.5bn in equity investments on the balance sheet. That gives write-down risk, and the stake cannot be sold during the lock-up period.
stockanalysis.com
−3
Execution of the split-up
Honeywell Technologies must now stand alone with stranded costs. Sales guidance was lowered shortly after Investor Day, and the divestment of PSS and WWS and the integration of Johnson Matthey Catalyst Technologies are running at the same time.
honeywell.com
−2

Plus

Only documented strengths. · 2 findings+4 of +15

Order intake
Orders rose 16% organically in Q2, and the order book grew 9% to approx. $20bn, equal to approx. one year of revenue. Building Automation grew 9% organically.
sec.gov
+3
Quantum option (Quantinuum)
Quantinuum (ion trap) has the highest documented two-qubit fidelity among commercial gate-based systems: Helios with 99.921% on 98 qubits. The company has 2.1bn $ in net cash after the IPO, so Honeywell does not need to fund it.
datacenterdynamics.com
+1

Caveats

What the score does not capture, or where the data is weak.

The company is now Honeywell Technologies (pure automation) after the spin-off of Solstice (2025) and Aerospace (HONA, 29/6/2026) and a 1:2 reverse split the same day. Stockanalysis' TTM figures (revenue $38bn, P/E 8 and the gain of $6.6bn on deconsolidation of Quantinuum) still include Aerospace and are misleading. T2 is therefore based on the company's 2026 guidance (revenue $19.8–20.0bn, adjusted EPS $8.05–8.35, FCF about $2.0bn). The debt of $34bn is as of quarter-end before Aerospace was separated in the accounts, so net gearing after the spin-off is unresolved. The industry 'Machinery & automation' is the closest (building and process automation). Insider trading and asbestos liabilities have not been examined.