HONEYWELL INTERNATIONAL INC (HON)
US4385161066 - Common Stock
Overall HON gets a fundamental rating of 6 out of 10. We evaluated HON against 9 industry peers in the Industrial Conglomerates industry. HON has an excellent profitability rating, 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
HON had positive earnings in the past year.
In the past year HON had a positive cash flow from operations.
HON had positive earnings in 4 of the past 5 years.
Of the past 5 years HON 4 years had a positive operating cash flow.
1.2 Ratios
HON has a Return On Assets of 7.73%. This is amongst the best in the industry. HON outperforms 88.89% of its industry peers.
Looking at the Return On Equity, with a value of 32.65%, HON is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Invested Capital of HON (10.78%) is better than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HON is above the industry average of 9.11%.
| 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
The Profit Margin of HON (15.01%) is better than 88.89% of its industry peers.
In the last couple of years the Profit Margin of HON has remained more or less at the same level.
Looking at the Operating Margin, with a value of 20.71%, HON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HON's Operating Margin has improved in the last couple of years.
HON has a Gross Margin of 37.60%. This is in the better half of the industry: HON outperforms 77.78% of its industry peers.
HON's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HON is creating some value.
There is no outstanding debt for HON. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
HON has an Altman-Z score of 3.57. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
HON's Altman-Z score of 3.57 is amongst the best of the industry. HON outperforms 88.89% 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.
HON has a better Debt to FCF ratio (5.47) than 77.78% of its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that HON has dependencies on debt financing.
HON has a better Debt to Equity ratio (1.67) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.3
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.44 indicates that HON should not have too much problems paying its short term obligations.
HON's Current ratio of 1.44 is amongst the best of the industry. HON outperforms 88.89% of its industry peers.
HON has a Quick Ratio of 1.12. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HON (1.12) is better than 77.78% 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.
Measured over the past years, HON shows a decrease in Revenue. The Revenue has been decreasing by -2.59% on average per year.
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 10.06% yearly.
HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y12.19%
EPS Next 2Y10.14%
EPS Next 3Y9.76%
EPS Next 5Y10.06%
Revenue Next Year4.71%
Revenue Next 2Y6.25%
Revenue Next 3Y5.88%
Revenue Next 5Y5.6%
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 23.08, the valuation of HON can be described as rather expensive.
HON's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.53, HON is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.59, the valuation of HON can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HON is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, HON is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 20.59 |
4.2 Price Multiples
HON's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HON is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.42 | ||
| EV/EBITDA | 18.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HON may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)7.9
EPS Next 2Y10.14%
EPS Next 3Y9.76%
5. Dividend
5.1 Amount
HON has a Yearly Dividend Yield of 1.96%.
HON's Dividend Yield is a higher than the industry average which is at 6.94.
Compared to an average S&P500 Dividend Yield of 2.21, HON has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of HON is nicely growing with an annual growth rate of 7.24%!
HON has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HON decreased recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
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.
HON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.54%
EPS Next 2Y10.14%
EPS Next 3Y9.76%
HONEYWELL INTERNATIONAL INC
NASDAQ:HON (11/15/2024, 8:16:55 PM)
After market: 228.99 0 (0%)228.99
-1.68 (-0.73%)
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 Cap148.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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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 | 23.08 | ||
| Fwd PE | 20.59 | ||
| 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)1.89
PEG (5Y)7.9
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 Y12.19%
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