HONEYWELL INTERNATIONAL INC (HON)
US4385161066 - Common Stock
Overall HON gets a fundamental rating of 6 out of 10. We evaluated HON against 8 industry peers in the Industrial Conglomerates industry. HON scores excellent on profitability, but there are some minor concerns on its financial health. HON has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HON was profitable.
In the past year HON had a positive cash flow from operations.
HON had positive earnings in 4 of the past 5 years.
HON had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HON (7.73%) is better than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 32.65%, HON belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Invested Capital of HON (10.78%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HON is above the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 32.65% | ||
| ROIC | 10.78% |
ROA(3y)8.59%
ROA(5y)8.73%
ROE(3y)31.76%
ROE(5y)31.14%
ROIC(3y)12.51%
ROIC(5y)12.3%
1.3 Margins
HON has a Profit Margin of 15.01%. This is amongst the best in the industry. HON outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of HON has remained more or less at the same level.
HON's Operating Margin of 20.71% is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of HON has grown nicely.
HON's Gross Margin of 37.60% is fine compared to the rest of the industry. HON outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of HON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.71% | ||
| PM (TTM) | 15.01% | ||
| GM | 37.6% |
OM growth 3Y0.24%
OM growth 5Y2.83%
PM growth 3Y1.77%
PM growth 5Y-0.95%
GM growth 3Y5.14%
GM growth 5Y4.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HON is still creating some value.
HON has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HON has an Altman-Z score of 3.59. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HON (3.59) is better than 87.50% of its industry peers.
HON has a debt to FCF ratio of 5.47. This is a neutral value as HON would need 5.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.47, HON belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 1.67 is on the high side and indicates that HON has dependencies on debt financing.
The Debt to Equity ratio of HON (1.67) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.3
WACC8.27%
2.3 Liquidity
HON has a Current Ratio of 1.44. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.44, HON belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that HON should not have too much problems paying its short term obligations.
HON has a Quick ratio of 1.12. This is in the better half of the industry: HON outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
HON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.13%, which is quite good.
HON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.92% yearly.
The Revenue has been growing slightly by 3.96% in the past year.
The Revenue has been decreasing by -2.59% on average over the past years.
EPS 1Y (TTM)9.13%
EPS 3Y8.9%
EPS 5Y2.92%
EPS Q2Q%13.66%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y3.95%
Revenue growth 5Y-2.59%
Sales Q2Q%5.6%
3.2 Future
HON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.15% yearly.
Based on estimates for the next years, HON will show a small growth in Revenue. The Revenue will grow by 5.32% on average per year.
EPS Next Y12.21%
EPS Next 2Y10.16%
EPS Next 3Y9.9%
EPS Next 5Y10.15%
Revenue Next Year4.82%
Revenue Next 2Y6.22%
Revenue Next 3Y5.87%
Revenue Next 5Y5.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 23.17, HON is valued on the expensive side.
Based on the Price/Earnings ratio, HON is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.77. HON is around the same levels.
HON is valuated rather expensively with a Price/Forward Earnings ratio of 20.65.
Based on the Price/Forward Earnings ratio, HON is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.38. HON is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
HON's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HON is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.51 | ||
| EV/EBITDA | 18.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HON does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)7.93
EPS Next 2Y10.16%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
HON has a Yearly Dividend Yield of 1.99%.
HON's Dividend Yield is a higher than the industry average which is at 5.22.
Compared to an average S&P500 Dividend Yield of 2.24, HON has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
On average, the dividend of HON grows each year by 7.24%, which is quite nice.
HON has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HON decreased in the last 3 years.
Dividend Growth(5Y)7.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HON pays out 50.54% 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.
DP50.54%
EPS Next 2Y10.16%
EPS Next 3Y9.9%
HONEYWELL INTERNATIONAL INC
NASDAQ:HON (12/18/2024, 2:46:04 PM)
229.8
-3.33 (-1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap149.43B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 20.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.9
PEG (5Y)7.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 32.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.71% | ||
| PM (TTM) | 15.01% | ||
| GM | 37.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.13%
EPS 3Y8.9%
EPS 5Y
EPS Q2Q%
EPS Next Y12.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.96%
Revenue growth 3Y3.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y