HONEYWELL INTERNATIONAL INC (1HON.MI) Stock Fundamental Analysis
BIT:1HON - Euronext Milan - US4385161066 - Common Stock - Currency: EUR
Overall 1HON gets a fundamental rating of 5 out of 10. We evaluated 1HON against 16 industry peers in the Industrial Conglomerates industry. 1HON scores excellent on profitability, but there are some minor concerns on its financial health. 1HON is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1HON was profitable.
In the past year 1HON had a positive cash flow from operations.
Each year in the past 5 years 1HON has been profitable.
Each year in the past 5 years 1HON had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.57%, 1HON belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
1HON has a better Return On Equity (32.59%) than 75.00% of its industry peers.
1HON's Return On Invested Capital of 11.09% is amongst the best of the industry. 1HON outperforms 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HON is significantly above the industry average of 6.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 32.59% | ||
| ROIC | 11.09% |
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 14.51% is fine compared to the rest of the industry. 1HON outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of 1HON has declined.
Looking at the Operating Margin, with a value of 20.98%, 1HON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1HON's Operating Margin has been stable in the last couple of years.
1HON has a worse Gross Margin (38.06%) than 87.50% of its industry peers.
1HON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.98% | ||
| PM (TTM) | 14.51% | ||
| GM | 38.06% |
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), 1HON is creating some value.
1HON has less shares outstanding than it did 1 year ago.
1HON has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1HON has a worse debt to assets ratio.
2.2 Solvency
1HON has an Altman-Z score of 3.41. This indicates that 1HON is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.41, 1HON belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of 1HON is 6.48, which is on the high side as it means it would take 1HON, 6.48 years of fcf income to pay off all of its debts.
1HON has a Debt to FCF ratio of 6.48. This is in the better half of the industry: 1HON outperforms 68.75% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that 1HON has dependencies on debt financing.
With a Debt to Equity ratio value of 1.80, 1HON is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 3.41 |
ROIC/WACC1.42
WACC7.81%
2.3 Liquidity
1HON has a Current Ratio of 1.25. 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 1.25, 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 1.25. This is a bad value and indicates that 1HON is not financially healthy enough and could expect problems in meeting its short term obligations.
1HON has a Quick ratio of 0.95. This is in the lower half of the industry: 1HON underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.49% over the past year.
1HON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.71% yearly.
The Revenue has been growing slightly by 6.27% in the past year.
The Revenue has been growing slightly by 0.96% on average over the past years.
EPS 1Y (TTM)7.49%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%11.56%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%7.87%
3.2 Future
Based on estimates for the next years, 1HON will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.61% on average per year.
Based on estimates for the next years, 1HON will show a small growth in Revenue. The Revenue will grow by 5.36% on average per year.
EPS Next Y7.13%
EPS Next 2Y7.91%
EPS Next 3Y8.47%
EPS Next 5Y8.61%
Revenue Next Year5.03%
Revenue Next 2Y4.63%
Revenue Next 3Y4.87%
Revenue Next 5Y5.36%
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.
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
1HON is valuated rather expensively with a Price/Earnings ratio of 22.11.
Based on the Price/Earnings ratio, 1HON is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of 1HON to the average of the S&P500 Index (26.82), we can say 1HON is valued inline with the index average.
A Price/Forward Earnings ratio of 19.49 indicates a rather expensive valuation of 1HON.
68.75% of the companies in the same industry are cheaper than 1HON, based on the Price/Forward Earnings ratio.
1HON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HON indicates a slightly more expensive valuation: 1HON is more expensive than 75.00% of the companies listed in the same industry.
1HON's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.2 | ||
| EV/EBITDA | 16.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1HON does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1HON may justify a higher PE ratio.
PEG (NY)3.1
PEG (5Y)5.96
EPS Next 2Y7.91%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, 1HON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 12.95, 1HON is paying slightly less dividend.
1HON's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
1HON pays out 51.50% of its income as dividend. 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.
DP51.5%
EPS Next 2Y7.91%
EPS Next 3Y8.47%
BIT:1HON (7/30/2025, 7:00:00 PM)
194.1
+0.1 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners82.8%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap124.74B
Analysts74.84
Price Target213.47 (9.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend3.87
Dividend Growth(5Y)5.64%
DP51.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.84%
Min EPS beat(2)5.37%
Max EPS beat(2)12.31%
EPS beat(4)4
Avg EPS beat(4)5.46%
Min EPS beat(4)2.07%
Max EPS beat(4)12.31%
EPS beat(8)7
Avg EPS beat(8)3.07%
EPS beat(12)10
Avg EPS beat(12)3.01%
EPS beat(16)13
Avg EPS beat(16)2.57%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.37%
Max Revenue beat(2)1.6%
Revenue beat(4)3
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)1.6%
Revenue beat(8)3
Avg Revenue beat(8)-0.65%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)4.91%
PT rev (3m)-8.36%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 19.49 | ||
| P/S | 3.64 | ||
| P/FCF | 28.2 | ||
| P/OCF | 22.86 | ||
| P/B | 8.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.53 |
EPS(TTM)8.78
EY4.52%
EPS(NY)9.96
Fwd EY5.13%
FCF(TTM)6.88
FCFY3.55%
OCF(TTM)8.49
OCFY4.37%
SpS53.31
BVpS23.74
TBVpS-15.08
PEG (NY)3.1
PEG (5Y)5.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 32.59% | ||
| ROCE | 15.48% | ||
| ROIC | 11.09% | ||
| ROICexc | 13.38% | ||
| ROICexgc | 32.21% | ||
| OM | 20.98% | ||
| PM (TTM) | 14.51% | ||
| GM | 38.06% | ||
| FCFM | 12.91% |
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%
ROICexcg growth 3Y-3.6%
ROICexcg 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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 83.42% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.76% | ||
| Profit Quality | 88.98% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 3.41 |
F-Score5
WACC7.81%
ROIC/WACC1.42
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)7.49%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%11.56%
EPS Next Y7.13%
EPS Next 2Y7.91%
EPS Next 3Y8.47%
EPS Next 5Y8.61%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%7.87%
Revenue Next Year5.03%
Revenue Next 2Y4.63%
Revenue Next 3Y4.87%
Revenue Next 5Y5.36%
EBIT growth 1Y7.01%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year20.19%
EBIT Next 3Y11.07%
EBIT Next 5Y10.3%
FCF growth 1Y37.68%
FCF growth 3Y-1.38%
FCF growth 5Y-4.03%
OCF growth 1Y40.23%
OCF growth 3Y0.32%
OCF growth 5Y-2.44%