HONEYWELL INTERNATIONAL INC (ALD.DE) Stock Fundamental Analysis
FRA:ALD - Deutsche Boerse Ag - US4385161066 - Common Stock - Currency: EUR
Overall ALD gets a fundamental rating of 5 out of 10. We evaluated ALD against 14 industry peers in the Industrial Conglomerates industry. While ALD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALD was profitable.
In the past year ALD had a positive cash flow from operations.
In the past 5 years ALD has always been profitable.
ALD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALD has a better Return On Assets (7.57%) than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 32.59%, ALD is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Return On Invested Capital of ALD (11.09%) is better than 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALD is significantly above the industry average of 7.10%.
| 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
ALD has a Profit Margin of 14.51%. This is in the better half of the industry: ALD outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of ALD has declined.
With an excellent Operating Margin value of 20.98%, ALD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 38.06%, ALD is doing worse than 85.71% of the companies in the same industry.
In the last couple of years the Gross Margin of ALD has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALD is still creating some value.
Compared to 1 year ago, ALD has less shares outstanding
The number of shares outstanding for ALD has been reduced compared to 5 years ago.
The debt/assets ratio for ALD is higher compared to a year ago.
2.2 Solvency
ALD has an Altman-Z score of 3.53. This indicates that ALD is financially healthy and has little risk of bankruptcy at the moment.
ALD's Altman-Z score of 3.53 is amongst the best of the industry. ALD outperforms 85.71% of its industry peers.
ALD has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as ALD would need 6.48 years to pay back of all of its debts.
ALD has a Debt to FCF ratio of 6.48. This is in the better half of the industry: ALD outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that ALD has dependencies on debt financing.
ALD has a Debt to Equity ratio of 1.80. This is in the lower half of the industry: ALD underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.38
WACC8.02%
2.3 Liquidity
ALD has a Current Ratio of 1.25. This is a normal value and indicates that ALD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, ALD is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that ALD may have some problems paying its short term obligations.
ALD has a worse Quick ratio (0.95) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
ALD 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, ALD 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, ALD shows a small growth in Revenue. The Revenue has grown by 6.27% in the last 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
ALD 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 4.75% on average over the next years.
EPS Next Y7.3%
EPS Next 2Y8.11%
EPS Next 3Y8.59%
EPS Next 5Y8.61%
Revenue Next Year5.29%
Revenue Next 2Y4.84%
Revenue Next 3Y5.01%
Revenue Next 5Y4.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 23.83, the valuation of ALD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ALD indicates a slightly more expensive valuation: ALD is more expensive than 71.43% of the companies listed in the same industry.
ALD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.93 indicates a rather expensive valuation of ALD.
Based on the Price/Forward Earnings ratio, ALD is valued a bit more expensive than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ALD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than ALD, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.39 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALD does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALD may justify a higher PE ratio.
PEG (NY)3.26
PEG (5Y)6.42
EPS Next 2Y8.11%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
ALD has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
ALD's Dividend Yield is comparable with the industry average which is at 3.63.
Compared to an average S&P500 Dividend Yield of 2.35, ALD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of ALD has a limited annual growth rate of 5.64%.
Dividend Growth(5Y)5.64%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
51.50% of the earnings are spent on dividend by ALD. This is a bit on the high side, but may be sustainable.
The dividend of ALD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.5%
EPS Next 2Y8.11%
EPS Next 3Y8.59%
FRA:ALD (7/10/2025, 7:00:00 PM)
204.95
+2.05 (+1.01%)
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 Cap131.72B
Analysts75
Price Target215.2 (5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend3.82
Dividend Growth(5Y)5.64%
DP51.5%
Div Incr Years5
Div Non Decr Years5
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)0.9%
PT rev (3m)-4.35%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 20.93 | ||
| P/S | 3.92 | ||
| P/FCF | 30.39 | ||
| P/OCF | 24.64 | ||
| P/B | 8.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.68 |
EPS(TTM)8.6
EY4.2%
EPS(NY)9.79
Fwd EY4.78%
FCF(TTM)6.74
FCFY3.29%
OCF(TTM)8.32
OCFY4.06%
SpS52.23
BVpS23.26
TBVpS-14.78
PEG (NY)3.26
PEG (5Y)6.42
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 | 3.53 |
F-Score5
WACC8.02%
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 Y7.3%
EPS Next 2Y8.11%
EPS Next 3Y8.59%
EPS Next 5Y8.61%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%7.87%
Revenue Next Year5.29%
Revenue Next 2Y4.84%
Revenue Next 3Y5.01%
Revenue Next 5Y4.75%
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%