HONEYWELL INTERNATIONAL INC (1HON.MI) Stock Fundamental Analysis
BIT:1HON - Euronext Milan - US4385161066 - Common Stock - Currency: EUR
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 has an excellent profitability rating, 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
In the past year 1HON was profitable.
1HON had a positive operating cash flow in the past year.
In the past 5 years 1HON has always been profitable.
In the past 5 years 1HON always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.57%, 1HON is doing good in the industry, outperforming 73.33% of the companies in the same industry.
The Return On Equity of 1HON (32.59%) is better than 86.67% of its industry peers.
1HON has a Return On Invested Capital of 11.09%. This is amongst the best in the industry. 1HON outperforms 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1HON is significantly above the industry average of 6.58%.
| 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 has a Profit Margin of 14.51%. This is in the better half of the industry: 1HON outperforms 73.33% of its industry peers.
1HON's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 20.98%, 1HON belongs to the best 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 80.00% 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
1HON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1HON has less shares outstanding
1HON has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1HON is higher compared to a year ago.
2.2 Solvency
1HON has an Altman-Z score of 3.45. This indicates that 1HON is financially healthy and has little risk of bankruptcy at the moment.
1HON has a better Altman-Z score (3.45) than 86.67% of its industry peers.
1HON has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as 1HON would need 6.48 years to pay back of all of its debts.
1HON has a better Debt to FCF ratio (6.48) than 66.67% of its industry peers.
1HON has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
1HON has a Debt to Equity ratio of 1.80. This is in the lower half of the industry: 1HON underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.38
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.25 indicates that 1HON should not have too much problems paying its short term obligations.
1HON has a worse Current ratio (1.25) than 80.00% of its industry peers.
A Quick Ratio of 0.95 indicates that 1HON may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, 1HON is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
1HON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.49%.
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.
Looking at the last year, 1HON shows a small growth in Revenue. The Revenue has grown by 6.27% in the last year.
1HON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.96% yearly.
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
1HON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.61% yearly.
The Revenue is expected to grow by 5.36% on average over the next years.
EPS Next Y7.13%
EPS Next 2Y7.91%
EPS Next 3Y8.47%
EPS Next 5Y8.61%
Revenue Next Year5%
Revenue Next 2Y4.57%
Revenue Next 3Y4.85%
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
Based on the Price/Earnings ratio of 22.58, the valuation of 1HON can be described as rather expensive.
Based on the Price/Earnings ratio, 1HON is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1HON to the average of the S&P500 Index (26.52), we can say 1HON is valued inline with the index average.
The Price/Forward Earnings ratio is 19.91, which indicates a rather expensive current valuation of 1HON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HON indicates a slightly more expensive valuation: 1HON is more expensive than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1HON to the average of the S&P500 Index (22.25), we can say 1HON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1HON is valued a bit more expensive than 73.33% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1HON.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.81 | ||
| EV/EBITDA | 16.85 |
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 decent profitability rating of 1HON may justify a higher PE ratio.
PEG (NY)3.17
PEG (5Y)6.09
EPS Next 2Y7.91%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
1HON has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, 1HON has a dividend in line with its industry peers.
1HON's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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.
The dividend of 1HON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.5%
EPS Next 2Y7.91%
EPS Next 3Y8.47%
BIT:1HON (6/5/2025, 7:00:00 PM)
198.74
+1.98 (+1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners85.01%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap127.73B
Analysts73.55
Price Target212.31 (6.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend3.95
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)-8.86%
PT rev (3m)-8.86%
EPS NQ rev (1m)2.65%
EPS NQ rev (3m)2.65%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 19.91 | ||
| P/S | 3.72 | ||
| P/FCF | 28.81 | ||
| P/OCF | 23.36 | ||
| P/B | 8.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.85 |
EPS(TTM)8.8
EY4.43%
EPS(NY)9.98
Fwd EY5.02%
FCF(TTM)6.9
FCFY3.47%
OCF(TTM)8.51
OCFY4.28%
SpS53.42
BVpS23.79
TBVpS-15.11
PEG (NY)3.17
PEG (5Y)6.09
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 | 3.45 |
F-Score5
WACC8.06%
ROIC/WACC1.38
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%
Revenue Next 2Y4.57%
Revenue Next 3Y4.85%
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%