HONEYWELL INTERNATIONAL INC (HON) Stock Fundamental Analysis
USA - NASDAQ:HON - US4385161066 - Common Stock
201.33 USD
+1.22 (+0.61%)
201.5 USD
+0.17 (+0.08%)
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 has a great profitability rating, 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.
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
HON's Return On Assets of 7.57% is amongst the best of the industry. HON outperforms 85.71% of its industry peers.
The Return On Equity of HON (36.52%) is better than 85.71% of its industry peers.
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 8.23%.
| 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's Profit Margin of 15.07% is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of HON has declined.
HON has a Operating Margin of 19.89%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of HON has remained more or less at the same level.
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
HON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HON has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HON has been reduced compared to 5 years ago.
Compared to 1 year ago, HON has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that HON is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.07, 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.
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.
HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external 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 | 3.07 |
ROIC/WACC1.28
WACC7.73%
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.
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.
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
The Earnings Per Share has been growing slightly by 6.35% over the past year.
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.
The Revenue has been growing slightly by 7.45% in the past year.
The Revenue has been growing slightly by 0.96% on average over the past years.
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
HON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
EPS Next Y8.7%
EPS Next 2Y7.8%
EPS Next 3Y8.05%
EPS Next 5Y9.36%
Revenue Next Year6.63%
Revenue Next 2Y5.12%
Revenue Next 3Y5.01%
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.
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
HON is valuated rather expensively with a Price/Earnings ratio of 19.08.
Based on the Price/Earnings ratio, HON is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of HON to the average of the S&P500 Index (26.10), we can say HON is valued slightly cheaper.
HON is valuated rather expensively with a Price/Forward Earnings ratio of 17.70.
Based on the Price/Forward Earnings ratio, HON is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HON to the average of the S&P500 Index (22.52), we can say HON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than HON, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HON is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.74 | ||
| EV/EBITDA | 14.88 |
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)2.19
PEG (5Y)5.14
EPS Next 2Y7.8%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, HON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.11, 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 2.35, HON has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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.
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 2Y7.8%
EPS Next 3Y8.05%
201.33
+1.22 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change-0.24%
Ins Owners0.04%
Ins Owner Change0.02%
Market Cap127.82B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts75
Price Target251.78 (25.06%)
Short Float %3.26%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)0%
PT rev (3m)1.87%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 17.7 | ||
| P/S | 3.14 | ||
| P/FCF | 20.74 | ||
| P/OCF | 17.08 | ||
| P/B | 7.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.88 |
EPS(TTM)10.55
EY5.24%
EPS(NY)11.38
Fwd EY5.65%
FCF(TTM)9.71
FCFY4.82%
OCF(TTM)11.79
OCFY5.86%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)2.19
PEG (5Y)5.14
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 | 3.07 |
F-Score4
WACC7.73%
ROIC/WACC1.28
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 Y8.7%
EPS Next 2Y7.8%
EPS Next 3Y8.05%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.63%
Revenue Next 2Y5.12%
Revenue Next 3Y5.01%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year23.61%
EBIT Next 3Y12.26%
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 8.7% in the next year.
Is the dividend of HONEYWELL INTERNATIONAL INC sustainable?
The dividend rating of HONEYWELL INTERNATIONAL INC (HON) is 5 / 10 and the dividend payout ratio is 48.21%.