Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Honeywell International Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Analysis of the presented financial information reveals significant fluctuations in free cash flow to equity (FCFE) over the five-year period. Net cash provided by operating activities demonstrates a generally stable pattern, while FCFE exhibits considerable volatility.
- Net Cash from Operations
- Net cash provided by operating activities decreased from US$6,038 million in 2021 to US$5,274 million in 2022, representing a decline of approximately 14.5%. A modest recovery was observed in 2023, with cash from operations reaching US$5,340 million. Further improvement occurred in 2024, increasing to US$6,097 million, and remained relatively consistent in 2025 at US$6,075 million. This indicates a return to levels comparable to those seen in 2021.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a substantial increase from US$2,774 million in 2021 to US$4,854 million in 2022, a growth of approximately 74.7%. This positive trend continued into 2023, with FCFE reaching US$4,927 million. However, 2024 witnessed an exceptional surge, with FCFE escalating to US$15,789 million, representing a more than threefold increase from the prior year. A significant decrease in FCFE was then observed in 2025, falling to US$7,728 million, although still remaining above the levels recorded in 2021 and 2022.
The divergence between the relatively stable operating cash flow and the highly variable FCFE suggests that factors beyond core operating performance are significantly influencing the cash available to equity holders. These factors could include changes in capital expenditures, debt financing, share repurchases, or dividend payments, none of which are directly presented in this information. The substantial increase in FCFE in 2024, followed by a considerable decline in 2025, warrants further investigation to understand the underlying drivers of these fluctuations.
Overall, while operating cash flow demonstrates a degree of consistency, the FCFE profile is characterized by substantial swings, indicating a complex cash flow dynamic that requires deeper scrutiny.
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Price to FCFE Ratio, Current
Honeywell International Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 316,940,010 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 7,728) |
| FCFE per share | 24.38 |
| Current share price (P) | 203.44 |
| Valuation Ratio | |
| P/FCFE | 8.34 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 29.30 |
| Eaton Corp. plc | 38.34 |
| GE Aerospace | 41.96 |
| Lockheed Martin Corp. | 14.92 |
| RTX Corp. | 58.41 |
| P/FCFE, Sector | |
| Capital Goods | 37.04 |
| P/FCFE, Industry | |
| Industrials | 30.63 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Honeywell International Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 317,837,851 | 324,959,276 | 326,090,906 | 334,070,126 | 342,909,386 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 7,728) | 15,789) | 4,927) | 4,854) | 2,774) | |
| FCFE per share3 | 24.31 | 48.59 | 15.11 | 14.53 | 8.09 | |
| Share price1, 4 | 485.30 | 405.50 | 394.34 | 400.94 | 373.98 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 19.96 | 8.35 | 26.10 | 27.59 | 46.23 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | — | — | — | 120.43 | — | |
| Caterpillar Inc. | 29.31 | 16.33 | 14.39 | 24.03 | 16.36 | |
| Eaton Corp. plc | 36.55 | 31.06 | 33.65 | 28.68 | 24.43 | |
| GE Aerospace | 41.29 | 53.26 | 225.15 | 44.45 | — | |
| Lockheed Martin Corp. | 17.36 | 13.31 | 13.13 | 11.63 | 14.65 | |
| RTX Corp. | 59.11 | 85.26 | 7.05 | 26.71 | 35.07 | |
| P/FCFE, Sector | ||||||
| Capital Goods | 40.08 | 33.57 | 20.26 | 25.94 | — | |
| P/FCFE, Industry | ||||||
| Industrials | 32.04 | 30.92 | 23.85 | 25.07 | — | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,728,000,000 ÷ 317,837,851 = 24.31
4 Closing price as at the filing date of Honeywell International Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 485.30 ÷ 24.31 = 19.96
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio experienced a significant downward trajectory between 2021 and 2024, before reversing in 2025. This trend reflects a period of substantial expansion in cash flow generation relative to market valuation, followed by a valuation correction in the final year of the period.
- Share Price Evolution
- The share price exhibited a general upward trend, moving from 373.98 US$ in 2021 to 485.30 US$ by 2025. While the price remained relatively stable between 2022 and 2024, oscillating around the 400 US$ mark, a sharp increase of approximately 20% was observed between 2024 and 2025.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE per share demonstrated high volatility. After increasing from 8.09 US$ in 2021 to 15.11 US$ in 2023, a substantial spike occurred in 2024, reaching a peak of 48.59 US$. This peak was followed by a correction in 2025, where FCFE per share declined to 24.31 US$, although this remained significantly higher than the 2021-2023 levels.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio contracted from 46.23 in 2021 to a low of 8.35 in 2024. This compression was primarily driven by the rapid growth of FCFE per share, which far outpaced the growth in share price during this interval. The ratio's increase to 19.96 in 2025 is the result of a simultaneous increase in share price and a reduction in FCFE per share, suggesting a normalization of the valuation multiple following the 2024 anomaly.
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