208.6 USD
+1.22 (+0.59%)
208.5 USD
-0.1 (-0.05%)
HON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 7 industry peers in the Industrial Conglomerates industry. HON has an excellent profitability rating, but there are some minor concerns on its financial health. HON has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HON had positive earnings in the past year.
In the past year HON had a positive cash flow from operations.
Each year in the past 5 years HON has been profitable.
HON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.57%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.52%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of HON (9.86%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HON is above the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 36.52% | ||
| ROIC | 9.86% |
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
HON has a Profit Margin of 15.07%. This is amongst the best in the industry. HON outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of HON has declined.
With an excellent Operating Margin value of 19.89%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
HON's Operating Margin has been stable in the last couple of years.
The Gross Margin of HON (36.94%) is better than 85.71% of its industry peers.
In the last couple of years the Gross Margin of HON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 15.07% | ||
| GM | 36.94% |
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
HON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HON has been reduced compared to 1 year ago.
HON has less shares outstanding than it did 5 years ago.
HON has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.12 indicates that HON is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.12, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
HON has a debt to FCF ratio of 6.01. This is a slightly negative value and a sign of low solvency as HON would need 6.01 years to pay back of all of its debts.
HON's Debt to FCF ratio of 6.01 is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
HON has a better Debt to Equity ratio (2.20) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.26
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HON should not have too much problems paying its short term obligations.
HON has a Current ratio (1.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that HON should not have too much problems paying its short term obligations.
HON has a Quick ratio of 1.04. This is comparable to the rest of the industry: HON outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
HON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.35%.
Measured over the past 5 years, HON shows a small growth in Earnings Per Share. The EPS has been growing by 3.71% on average per year.
HON shows a small growth in Revenue. In the last year, the Revenue has grown by 7.45%.
Measured over the past years, HON shows a small growth in Revenue. The Revenue has been growing by 0.96% on average per year.
EPS 1Y (TTM)6.35%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%9.3%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
3.2 Future
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
EPS Next Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue Next Year6.54%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y4.94%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.77, HON is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HON indicates a rather cheap valuation: HON is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, HON is valued a bit cheaper.
HON is valuated rather expensively with a Price/Forward Earnings ratio of 19.47.
The rest of the industry has a similar Price/Forward Earnings ratio as HON.
HON is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
HON's Enterprise Value to EBITDA is on the same level as the industry average.
85.71% of the companies in the same industry are more expensive than HON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 15.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)5.33
EPS Next 2Y4.61%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
HON has a Yearly Dividend Yield of 2.32%.
Compared to an average industry Dividend Yield of 4.53, HON pays a better dividend. On top of this HON pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, HON pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of HON has a limited annual growth rate of 5.64%.
HON has been paying a dividend for at least 10 years, so it has a reliable track record.
HON has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HON pays out 48.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.21%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
208.6
+1.22 (+0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners80.8%
Inst Owner Change0.81%
Ins Owners0.04%
Ins Owner Change0.14%
Market Cap132.44B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts73.71
Price Target241.54 (15.79%)
Short Float %1.47%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend4.46
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.64%
Min EPS beat(2)2.48%
Max EPS beat(2)8.81%
EPS beat(4)4
Avg EPS beat(4)7.24%
Min EPS beat(4)2.48%
Max EPS beat(4)12.31%
EPS beat(8)7
Avg EPS beat(8)4.36%
EPS beat(12)10
Avg EPS beat(12)3.47%
EPS beat(16)13
Avg EPS beat(16)3.05%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)1.59%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.59%
Min Revenue beat(4)1.37%
Max Revenue beat(4)1.79%
Revenue beat(8)5
Avg Revenue beat(8)0.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)-0.09%
PT rev (1m)-1.97%
PT rev (3m)-6.84%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-6.36%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 19.47 | ||
| P/S | 3.26 | ||
| P/FCF | 21.49 | ||
| P/OCF | 17.69 | ||
| P/B | 7.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.43 |
EPS(TTM)10.55
EY5.06%
EPS(NY)10.71
Fwd EY5.14%
FCF(TTM)9.71
FCFY4.65%
OCF(TTM)11.79
OCFY5.65%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)2.01
PEG (5Y)5.33
Graham Number79.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 36.52% | ||
| ROCE | 13.88% | ||
| ROIC | 9.86% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 30.7% | ||
| OM | 19.89% | ||
| PM (TTM) | 15.07% | ||
| GM | 36.94% | ||
| FCFM | 15.16% |
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%
ROICexgc growth 3Y-3.6%
ROICexgc 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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 85.12% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | 100.57% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.12 |
F-Score4
WACC7.82%
ROIC/WACC1.26
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)6.35%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%9.3%
EPS Next Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.54%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year20.52%
EBIT Next 3Y9.51%
EBIT Next 5Y10.87%
FCF growth 1Y60.73%
FCF growth 3Y-1.38%
FCF growth 5Y-4.03%
OCF growth 1Y57.55%
OCF growth 3Y0.32%
OCF growth 5Y-2.44%
HONEYWELL INTERNATIONAL INC / HON FAQ
What is the fundamental rating for HON stock?
ChartMill assigns a fundamental rating of 6 / 10 to HON.
What is the valuation status for HON stock?
ChartMill assigns a valuation rating of 5 / 10 to HONEYWELL INTERNATIONAL INC (HON). This can be considered as Fairly Valued.
Can you provide the profitability details for HONEYWELL INTERNATIONAL INC?
HONEYWELL INTERNATIONAL INC (HON) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HON stock?
The Price/Earnings (PE) ratio for HONEYWELL INTERNATIONAL INC (HON) is 19.77 and the Price/Book (PB) ratio is 7.89.
Is the dividend of HONEYWELL INTERNATIONAL INC sustainable?
The dividend rating of HONEYWELL INTERNATIONAL INC (HON) is 6 / 10 and the dividend payout ratio is 48.21%.