HONEYWELL INTERNATIONAL INC (ALD.DE) Stock Fundamental Analysis
FRA:ALD - Deutsche Boerse Ag - US4385161066 - Common Stock - Currency: EUR
ALD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Industrial Conglomerates industry. While ALD has a great profitability rating, there are some minor concerns on its financial health. ALD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALD was profitable.
ALD had a positive operating cash flow in the past year.
ALD had positive earnings in each of the past 5 years.
Each year in the past 5 years ALD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALD (7.59%) is better than 66.67% of its industry peers.
ALD has a better Return On Equity (30.64%) than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.06%, ALD belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALD is significantly above the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 30.64% | ||
| ROIC | 11.06% |
ROA(3y)8.25%
ROA(5y)8.15%
ROE(3y)32.02%
ROE(5y)30.63%
ROIC(3y)12.23%
ROIC(5y)11.94%
1.3 Margins
Looking at the Profit Margin, with a value of 14.82%, ALD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ALD's Profit Margin has declined in the last couple of years.
The Operating Margin of ALD (21.05%) is better than 100.00% of its industry peers.
ALD's Operating Margin has been stable in the last couple of years.
ALD has a worse Gross Margin (38.09%) than 80.00% of its industry peers.
ALD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.05% | ||
| PM (TTM) | 14.82% | ||
| GM | 38.09% |
OM growth 3Y-1.26%
OM growth 5Y0.55%
PM growth 3Y-2.75%
PM growth 5Y-2.4%
GM growth 3Y6%
GM growth 5Y2.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALD is still creating some value.
ALD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALD has less shares outstanding
Compared to 1 year ago, ALD has a worse debt to assets ratio.
2.2 Solvency
ALD has an Altman-Z score of 3.29. This indicates that ALD is financially healthy and has little risk of bankruptcy at the moment.
ALD has a Altman-Z score of 3.29. This is amongst the best in the industry. ALD outperforms 86.67% of its industry peers.
The Debt to FCF ratio of ALD is 6.30, which is on the high side as it means it would take ALD, 6.30 years of fcf income to pay off all of its debts.
ALD has a Debt to FCF ratio of 6.30. This is in the better half of the industry: ALD outperforms 66.67% of its industry peers.
ALD has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
ALD's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. ALD is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 6.3 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.4
WACC7.88%
2.3 Liquidity
ALD has a Current Ratio of 1.31. This is a normal value and indicates that ALD is financially healthy and should not expect problems in meeting its short term obligations.
ALD has a Current ratio of 1.31. This is amonst the worse of the industry: ALD underperforms 80.00% of its industry peers.
ALD has a Quick Ratio of 1.01. This is a normal value and indicates that ALD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, ALD is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
ALD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.76%.
ALD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.71% yearly.
Looking at the last year, ALD shows a small growth in Revenue. The Revenue has grown by 5.01% in the last year.
The Revenue has been growing slightly by 0.96% on average over the past years.
EPS 1Y (TTM)6.76%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%-5%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.86%
3.2 Future
ALD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.61% yearly.
Based on estimates for the next years, ALD will show a small growth in Revenue. The Revenue will grow by 5.36% on average per year.
EPS Next Y6.14%
EPS Next 2Y7.86%
EPS Next 3Y8.6%
EPS Next 5Y8.61%
Revenue Next Year5.35%
Revenue Next 2Y4.92%
Revenue Next 3Y5.05%
Revenue Next 5Y5.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.28 indicates a rather expensive valuation of ALD.
60.00% of the companies in the same industry are cheaper than ALD, based on the Price/Earnings ratio.
ALD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
A Price/Forward Earnings ratio of 19.11 indicates a rather expensive valuation of ALD.
Based on the Price/Forward Earnings ratio, ALD is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
ALD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 19.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALD indicates a slightly more expensive valuation: ALD is more expensive than 73.33% of the companies listed in the same industry.
ALD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.9 | ||
| EV/EBITDA | 15.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALD does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALD may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)5.47
EPS Next 2Y7.86%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
ALD has a Yearly Dividend Yield of 2.30%.
ALD's Dividend Yield is slightly below the industry average, which is at 3.91.
ALD's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of ALD has a limited annual growth rate of 5.64%.
Dividend Growth(5Y)5.64%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ALD pays out 50.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ALD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.87%
EPS Next 2Y7.86%
EPS Next 3Y8.6%
FRA:ALD (4/25/2025, 7:00:00 PM)
174.58
-1.74 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners85.01%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap112.30B
Analysts73.55
Price Target224.99 (28.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend3.93
Dividend Growth(5Y)5.64%
DP50.87%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.72%
Min EPS beat(2)2.07%
Max EPS beat(2)5.37%
EPS beat(4)4
Avg EPS beat(4)3.02%
Min EPS beat(4)2.07%
Max EPS beat(4)5.37%
EPS beat(8)7
Avg EPS beat(8)2.32%
EPS beat(12)10
Avg EPS beat(12)2.12%
EPS beat(16)13
Avg EPS beat(16)2.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)1.6%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)1.6%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)-0.36%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)-3.25%
PT rev (3m)-7.13%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-11%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-6.64%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 19.11 | ||
| P/S | 3.32 | ||
| P/FCF | 25.9 | ||
| P/OCF | 20.95 | ||
| P/B | 6.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.31 |
EPS(TTM)8.61
EY4.93%
EPS(NY)9.13
Fwd EY5.23%
FCF(TTM)6.74
FCFY3.86%
OCF(TTM)8.33
OCFY4.77%
SpS52.61
BVpS25.44
TBVpS-13.48
PEG (NY)3.3
PEG (5Y)5.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 30.64% | ||
| ROCE | 15.03% | ||
| ROIC | 11.06% | ||
| ROICexc | 13.62% | ||
| ROICexgc | 34.27% | ||
| OM | 21.05% | ||
| PM (TTM) | 14.82% | ||
| GM | 38.09% | ||
| FCFM | 12.81% |
ROA(3y)8.25%
ROA(5y)8.15%
ROE(3y)32.02%
ROE(5y)30.63%
ROIC(3y)12.23%
ROIC(5y)11.94%
ROICexc(3y)15.24%
ROICexc(5y)15.49%
ROICexgc(3y)37.17%
ROICexgc(5y)37.38%
ROCE(3y)16.37%
ROCE(5y)16.08%
ROICexcg growth 3Y-3.6%
ROICexcg growth 5Y-3.76%
ROICexc growth 3Y-5.53%
ROICexc growth 5Y-5.14%
OM growth 3Y-1.26%
OM growth 5Y0.55%
PM growth 3Y-2.75%
PM growth 5Y-2.4%
GM growth 3Y6%
GM growth 5Y2.48%
F-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 6.3 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 87.26% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 9.33 | ||
| Cash Conversion | 64.59% | ||
| Profit Quality | 86.47% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.29 |
F-Score6
WACC7.88%
ROIC/WACC1.4
Cap/Depr(3y)79.74%
Cap/Depr(5y)80.57%
Cap/Sales(3y)2.67%
Cap/Sales(5y)2.68%
Profit Quality(3y)84.42%
Profit Quality(5y)91.4%
High Growth Momentum
Growth
EPS 1Y (TTM)6.76%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%-5%
EPS Next Y6.14%
EPS Next 2Y7.86%
EPS Next 3Y8.6%
EPS Next 5Y8.61%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.86%
Revenue Next Year5.35%
Revenue Next 2Y4.92%
Revenue Next 3Y5.05%
Revenue Next 5Y5.36%
EBIT growth 1Y7.85%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year20.49%
EBIT Next 3Y10.96%
EBIT Next 5Y10.3%
FCF growth 1Y14.69%
FCF growth 3Y-1.38%
FCF growth 5Y-4.03%
OCF growth 1Y14.18%
OCF growth 3Y0.32%
OCF growth 5Y-2.44%