HONEYWELL INTERNATIONAL INC (1HON.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HON - US4385161066 - Common Stock
164.36 EUR
+1.22 (+0.75%)
We assign a fundamental rating of 6 out of 10 to 1HON. 1HON was compared to 16 industry peers in the Industrial Conglomerates industry. While 1HON has a great profitability rating, there are some minor concerns on its financial health. 1HON has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1HON had positive earnings in the past year.
In the past year 1HON had a positive cash flow from operations.
Each year in the past 5 years 1HON has been profitable.
1HON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1HON's Return On Assets of 7.57% is amongst the best of the industry. 1HON outperforms 87.50% of its industry peers.
1HON has a better Return On Equity (36.52%) than 87.50% of its industry peers.
The Return On Invested Capital of 1HON (9.86%) is better than 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HON is significantly above the industry average of 6.44%.
| 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
1HON's Profit Margin of 15.07% is amongst the best of the industry. 1HON outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of 1HON has declined.
1HON's Operating Margin of 19.89% is amongst the best of the industry. 1HON outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of 1HON has remained more or less at the same level.
The Gross Margin of 1HON (36.94%) is worse than 68.75% of its industry peers.
1HON'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 1HON is still creating some value.
The number of shares outstanding for 1HON has been reduced compared to 1 year ago.
Compared to 5 years ago, 1HON has less shares outstanding
Compared to 1 year ago, 1HON has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.02 indicates that 1HON is not in any danger for bankruptcy at the moment.
1HON has a better Altman-Z score (3.02) than 87.50% of its industry peers.
The Debt to FCF ratio of 1HON is 6.01, which is on the high side as it means it would take 1HON, 6.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.01, 1HON belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
1HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
1HON's Debt to Equity ratio of 2.20 is on the low side compared to the rest of the industry. 1HON is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.3
WACC7.59%
2.3 Liquidity
1HON has a Current Ratio of 1.36. This is a normal value and indicates that 1HON is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.36, 1HON is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
1HON has a Quick Ratio of 1.04. This is a normal value and indicates that 1HON is financially healthy and should not expect problems in meeting its short term obligations.
1HON has a Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
1HON 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, 1HON shows a small growth in Earnings Per Share. The EPS has been growing by 3.71% on average per year.
1HON shows a small growth in Revenue. In the last year, the Revenue has grown by 7.45%.
Measured over the past years, 1HON 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
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
1HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
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
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
1HON is valuated rather expensively with a Price/Earnings ratio of 18.24.
Based on the Price/Earnings ratio, 1HON is valued a bit cheaper than 68.75% of the companies in the same industry.
1HON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
1HON is valuated rather expensively with a Price/Forward Earnings ratio of 17.95.
Based on the Price/Forward Earnings ratio, 1HON is valued a bit cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, 1HON is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HON is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1HON is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 14.37 |
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 1HON may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)4.92
EPS Next 2Y4.66%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
1HON has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.18, 1HON has a dividend in line with its industry peers.
1HON's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of 1HON has a limited annual growth rate of 5.64%.
Dividend Growth(5Y)5.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
48.21% of the earnings are spent on dividend by 1HON. This is a bit on the high side, but may be sustainable.
1HON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.21%
EPS Next 2Y4.66%
EPS Next 3Y6.3%
BIT:1HON (12/8/2025, 7:00:00 PM)
164.36
+1.22 (+0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners80.63%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap104.35B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts74.38
Price Target211.96 (28.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend3.81
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years0
Div Non Decr Years0
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)-1.89%
PT rev (3m)-4.52%
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)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 17.95 | ||
| P/S | 3.01 | ||
| P/FCF | 19.83 | ||
| P/OCF | 16.33 | ||
| P/B | 7.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.37 |
EPS(TTM)9.01
EY5.48%
EPS(NY)9.16
Fwd EY5.57%
FCF(TTM)8.29
FCFY5.04%
OCF(TTM)10.07
OCFY6.12%
SpS54.69
BVpS22.57
TBVpS-18.94
PEG (NY)1.84
PEG (5Y)4.92
Graham Number67.64
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 | 3.02 |
F-Score4
WACC7.59%
ROIC/WACC1.3
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 / 1HON.MI FAQ
What is the ChartMill fundamental rating of HONEYWELL INTERNATIONAL INC (1HON.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1HON.MI.
Can you provide the valuation status for HONEYWELL INTERNATIONAL INC?
ChartMill assigns a valuation rating of 4 / 10 to HONEYWELL INTERNATIONAL INC (1HON.MI). This can be considered as Fairly Valued.
How profitable is HONEYWELL INTERNATIONAL INC (1HON.MI) stock?
HONEYWELL INTERNATIONAL INC (1HON.MI) has a profitability rating of 8 / 10.
What is the financial health of HONEYWELL INTERNATIONAL INC (1HON.MI) stock?
The financial health rating of HONEYWELL INTERNATIONAL INC (1HON.MI) is 5 / 10.
What is the earnings growth outlook for HONEYWELL INTERNATIONAL INC?
The Earnings per Share (EPS) of HONEYWELL INTERNATIONAL INC (1HON.MI) is expected to grow by 9.9% in the next year.