222.73 USD
+0.19 (+0.09%)
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 scores excellent on profitability, 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.
- HON had a positive operating cash flow in the past year.
- In the past 5 years HON has always been profitable.
- Each year in the past 5 years HON had a positive operating cash flow.
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.
- Looking at the Return On Invested Capital, with a value of 9.86%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HON is above the industry average of 7.65%.
| 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
- With an excellent Profit Margin value of 15.07%, HON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of HON has declined.
- Looking at the Operating Margin, with a value of 19.89%, HON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- HON's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 36.94%, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- HON's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HON is still creating some value.
- HON has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HON has less shares outstanding
- The debt/assets ratio for HON is higher compared to a year ago.
2.2 Solvency
- HON has an Altman-Z score of 3.20. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
- HON has a better Altman-Z score (3.20) than 100.00% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 6.01, HON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 2.20 is on the high side and indicates that HON has dependencies on debt 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 | 3.2 |
ROIC/WACC1.24
WACC7.94%
2.3 Liquidity
- HON has a Current Ratio of 1.36. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting 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.
- With a Quick ratio value of 1.04, HON perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.35% over the past year.
- HON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.71% yearly.
- The Revenue has been growing slightly by 7.45% in the past year.
- 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
- Based on estimates for the next years, HON will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
- Based on estimates for the next years, HON will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue Next Year4.78%
Revenue Next 2Y2.13%
Revenue Next 3Y3.22%
Revenue Next 5Y4.94%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 21.11 indicates a rather expensive valuation of HON.
- Compared to the rest of the industry, the Price/Earnings ratio of HON indicates a rather cheap valuation: HON is cheaper than 85.71% of the companies listed in the same industry.
- HON is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 20.79, which indicates a rather expensive current valuation of HON.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HON is on the same level as its industry peers.
- HON is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HON indicates a somewhat cheap valuation: HON is cheaper than 71.43% of the companies listed in the same industry.
- HON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HON is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.94 | ||
| EV/EBITDA | 16.35 |
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.
- HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)5.69
EPS Next 2Y4.61%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.21%, HON has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.52, HON pays a better dividend. On top of this HON pays more dividend than 85.71% of the companies listed in the same industry.
- HON's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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%
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 21.11 and the Price/Book (PB) ratio is 8.43.
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%.