HONEYWELL INTERNATIONAL INC (1HON.MI) Stock Fundamental Analysis
Europe - BIT:1HON - US4385161066 - Common Stock
190.12 EUR
+0.02 (+0.01%)
Taking everything into account, 1HON scores 5 out of 10 in our fundamental rating. 1HON was compared to 15 industry peers in the Industrial Conglomerates industry. 1HON scores excellent on profitability, but there are some minor concerns on its financial health. 1HON is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1HON had positive earnings in the past year.
1HON had a positive operating cash flow in the past year.
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 7.29% is amongst the best of the industry. 1HON outperforms 82.35% of its industry peers.
1HON has a Return On Equity of 35.52%. This is amongst the best in the industry. 1HON outperforms 82.35% of its industry peers.
The Return On Invested Capital of 1HON (10.45%) is better than 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1HON is significantly above the industry average of 5.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 35.52% | ||
| ROIC | 10.45% |
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 has a better Profit Margin (14.30%) than 76.47% of its industry peers.
1HON's Profit Margin has declined in the last couple of years.
1HON has a Operating Margin of 20.76%. This is amongst the best in the industry. 1HON outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of 1HON has remained more or less at the same level.
With a Gross Margin value of 38.08%, 1HON is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
1HON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.76% | ||
| PM (TTM) | 14.3% | ||
| GM | 38.08% |
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
1HON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
1HON has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1HON has less shares outstanding
1HON has a worse debt/assets ratio than last year.
2.2 Solvency
1HON has an Altman-Z score of 3.25. This indicates that 1HON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1HON (3.25) is better than 94.12% of its industry peers.
1HON has a debt to FCF ratio of 7.35. This is a slightly negative value and a sign of low solvency as 1HON would need 7.35 years to pay back of all of its debts.
1HON has a better Debt to FCF ratio (7.35) than 70.59% of its industry peers.
1HON has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
1HON has a Debt to Equity ratio of 2.26. This is in the lower half of the industry: 1HON underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 7.35 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.36
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.29 indicates that 1HON should not have too much problems paying its short term obligations.
1HON's Current ratio of 1.29 is on the low side compared to the rest of the industry. 1HON is outperformed by 70.59% of its industry peers.
1HON has a Quick Ratio of 1.29. 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 (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.28% over the past year.
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 7.11%.
The Revenue has been growing slightly by 0.96% on average over the past years.
EPS 1Y (TTM)7.28%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%10.44%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%8.09%
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 Y9.07%
EPS Next 2Y8.69%
EPS Next 3Y8.78%
EPS Next 5Y9.36%
Revenue Next Year6.94%
Revenue Next 2Y6%
Revenue Next 3Y5.65%
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.
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
A Price/Earnings ratio of 21.58 indicates a rather expensive valuation of 1HON.
The rest of the industry has a similar Price/Earnings ratio as 1HON.
When comparing the Price/Earnings ratio of 1HON to the average of the S&P500 Index (27.30), we can say 1HON is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.23, the valuation of 1HON can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HON is on the same level as its industry peers.
1HON's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 19.23 |
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 70.59% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1HON is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.42 | ||
| EV/EBITDA | 16.35 |
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.
1HON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)5.82
EPS Next 2Y8.69%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, 1HON has a reasonable but not impressive dividend return.
1HON's Dividend Yield is slightly below the industry average, which is at 14.02.
1HON's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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
51.34% 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.
DP51.34%
EPS Next 2Y8.69%
EPS Next 3Y8.78%
BIT:1HON (8/26/2025, 7:00:00 PM)
190.12
+0.02 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners83.71%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap120.71B
Analysts75
Price Target221.99 (16.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend3.81
Dividend Growth(5Y)5.64%
DP51.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.39%
Min EPS beat(2)2.48%
Max EPS beat(2)12.31%
EPS beat(4)4
Avg EPS beat(4)5.56%
Min EPS beat(4)2.07%
Max EPS beat(4)12.31%
EPS beat(8)7
Avg EPS beat(8)3.37%
EPS beat(12)10
Avg EPS beat(12)3.01%
EPS beat(16)13
Avg EPS beat(16)2.52%
Revenue beat(2)2
Avg Revenue beat(2)1.58%
Min Revenue beat(2)1.37%
Max Revenue beat(2)1.79%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)1.79%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.38%
PT rev (1m)1.25%
PT rev (3m)3.99%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)1.65%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 19.23 | ||
| P/S | 3.53 | ||
| P/FCF | 28.42 | ||
| P/OCF | 22.79 | ||
| P/B | 8.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.35 |
EPS(TTM)8.81
EY4.63%
EPS(NY)9.89
Fwd EY5.2%
FCF(TTM)6.69
FCFY3.52%
OCF(TTM)8.34
OCFY4.39%
SpS53.85
BVpS21.67
TBVpS-20.29
PEG (NY)2.38
PEG (5Y)5.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 35.52% | ||
| ROCE | 14.62% | ||
| ROIC | 10.45% | ||
| ROICexc | 12.58% | ||
| ROICexgc | 31.05% | ||
| OM | 20.76% | ||
| PM (TTM) | 14.3% | ||
| GM | 38.08% | ||
| FCFM | 12.42% |
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-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 7.35 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 81.08% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.11% | ||
| Profit Quality | 86.9% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.25 |
F-Score6
WACC7.67%
ROIC/WACC1.36
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)7.28%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%10.44%
EPS Next Y9.07%
EPS Next 2Y8.69%
EPS Next 3Y8.78%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%8.09%
Revenue Next Year6.94%
Revenue Next 2Y6%
Revenue Next 3Y5.65%
Revenue Next 5Y4.94%
EBIT growth 1Y6.67%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year22.69%
EBIT Next 3Y12.3%
EBIT Next 5Y10.87%
FCF growth 1Y19.02%
FCF growth 3Y-1.38%
FCF growth 5Y-4.03%
OCF growth 1Y23.26%
OCF growth 3Y0.32%
OCF growth 5Y-2.44%