193.66 USD
-0.19 (-0.1%)
193.98 USD
+0.32 (+0.17%)
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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years HON has 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.
HON has a Return On Invested Capital of 9.86%. This is amongst the best in the industry. HON outperforms 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 better Profit Margin (15.07%) than 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.
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.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HON is creating some value.
The number of shares outstanding for HON has been reduced compared to 1 year ago.
The number of shares outstanding for HON has been reduced compared to 5 years ago.
HON has a worse debt/assets ratio than last year.
2.2 Solvency
HON has an Altman-Z score of 3.03. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
HON's Altman-Z score of 3.03 is amongst the best of the industry. HON outperforms 85.71% 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.
HON has a Debt to FCF ratio of 6.01. This is amongst the best in the industry. HON outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 2.20 is on the high side and indicates that HON has dependencies on debt financing.
HON's Debt to Equity ratio of 2.20 is fine compared to the rest of the industry. HON outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.27
WACC7.76%
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 in line with its industry peers.
HON has a Quick Ratio of 1.04. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.04, HON is in line with its industry, 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.
Looking at the last year, HON shows a small growth in Revenue. The Revenue has grown by 7.45% in the last 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 Y9.9%
EPS Next 2Y4.66%
EPS Next 3Y6.3%
EPS Next 5Y9.36%
Revenue Next Year6.53%
Revenue Next 2Y2.15%
Revenue Next 3Y3.26%
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
HON is valuated rather expensively with a Price/Earnings ratio of 18.36.
HON's Price/Earnings ratio is rather cheap when compared to the industry. HON is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, HON is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.06 indicates a rather expensive valuation of HON.
Based on the Price/Forward Earnings ratio, HON is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HON to the average of the S&P500 Index (23.79), we can say HON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
HON's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HON is cheaper than 71.43% of the companies in the same industry.
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 | 19.95 | ||
| EV/EBITDA | 14.45 |
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)1.85
PEG (5Y)4.95
EPS Next 2Y4.66%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
HON has a Yearly Dividend Yield of 2.46%.
Compared to an average industry Dividend Yield of 4.58, 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 1.87, HON pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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.
The dividend of HON decreased 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 2Y4.66%
EPS Next 3Y6.3%
193.66
-0.19 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners80.63%
Inst Owner Change-0.96%
Ins Owners0.04%
Ins Owner Change0.07%
Market Cap122.95B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts74.38
Price Target246.4 (27.23%)
Short Float %1.36%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend4.46
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-2.14%
PT rev (3m)-4.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 18.06 | ||
| P/S | 3.02 | ||
| P/FCF | 19.95 | ||
| P/OCF | 16.43 | ||
| P/B | 7.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.45 |
EPS(TTM)10.55
EY5.45%
EPS(NY)10.72
Fwd EY5.54%
FCF(TTM)9.71
FCFY5.01%
OCF(TTM)11.79
OCFY6.09%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)1.85
PEG (5Y)4.95
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 | 3.03 |
F-Score4
WACC7.76%
ROIC/WACC1.27
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 Y9.9%
EPS Next 2Y4.66%
EPS Next 3Y6.3%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.53%
Revenue Next 2Y2.15%
Revenue Next 3Y3.26%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year22.93%
EBIT Next 3Y9.85%
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 of HONEYWELL INTERNATIONAL INC (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 expected EPS growth for HON stock?
The Earnings per Share (EPS) of HONEYWELL INTERNATIONAL INC (HON) is expected to grow by 9.9% in the next year.
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%.