207.38 USD
+2.14 (+1.04%)
206.71 USD
-0.67 (-0.32%)
We assign a fundamental rating of 6 out of 10 to HON. HON was compared to 7 industry peers in the Industrial Conglomerates industry. While HON belongs to the best of the industry regarding profitability, 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.
HON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HON's Return On Assets of 7.57% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
HON's Return On Equity of 36.52% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
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
The Profit Margin of HON (15.07%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of HON has declined.
The Operating Margin of HON (19.89%) is better than 85.71% of its industry peers.
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.
HON has less shares outstanding than it did 5 years ago.
HON has a worse debt/assets ratio than last year.
2.2 Solvency
HON has an Altman-Z score of 3.11. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
HON's Altman-Z score of 3.11 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.
Looking at the Debt to FCF ratio, with a value of 6.01, HON belongs to the top 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.
With a decent Debt to Equity ratio value of 2.20, HON is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.26
WACC7.81%
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's Current ratio of 1.36 is in line compared to the rest of the industry. HON outperforms 57.14% of its industry peers.
A Quick Ratio of 1.04 indicates that HON should not have too much problems paying its short term obligations.
HON's Quick ratio of 1.04 is in line compared 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
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.
The Revenue is expected to grow by 4.94% on average over the next years.
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
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
Based on the Price/Earnings ratio of 19.66, the valuation of HON can be described as rather expensive.
Based on the Price/Earnings ratio, HON is valued cheaper than 100.00% of the companies in the same industry.
HON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 19.36 indicates a rather expensive 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, HON is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
HON's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 21.36 | ||
| EV/EBITDA | 15.35 |
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.
The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)5.3
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 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)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.
HON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.21%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
207.38
+2.14 (+1.04%)
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 Cap131.66B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts73.71
Price Target241.54 (16.47%)
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 | 19.66 | ||
| Fwd PE | 19.36 | ||
| P/S | 3.24 | ||
| P/FCF | 21.36 | ||
| P/OCF | 17.59 | ||
| P/B | 7.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.35 |
EPS(TTM)10.55
EY5.09%
EPS(NY)10.71
Fwd EY5.17%
FCF(TTM)9.71
FCFY4.68%
OCF(TTM)11.79
OCFY5.68%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)2
PEG (5Y)5.3
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 | 3.11 |
F-Score4
WACC7.81%
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 19.66 and the Price/Book (PB) ratio is 7.85.
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%.