HONEYWELL INTERNATIONAL INC (ALD.DE) Stock Fundamental Analysis
FRA:ALD - Deutsche Boerse Ag - US4385161066 - Common Stock - Currency: EUR
ALD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Industrial Conglomerates industry. ALD scores excellent on profitability, but there are some minor concerns on its financial health. ALD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALD had positive earnings in the past year.
In the past year ALD had a positive cash flow from operations.
ALD had positive earnings in each of the past 5 years.
Each year in the past 5 years ALD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALD (7.57%) is better than 69.23% of its industry peers.
ALD has a Return On Equity of 32.59%. This is amongst the best in the industry. ALD outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.09%, ALD belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
ALD had an Average Return On Invested Capital over the past 3 years of 12.23%. This is significantly above the industry average of 6.67%.
| 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 76.92% of its industry peers.
In the last couple of years the Profit Margin of ALD has declined.
ALD has a Operating Margin of 20.98%. This is amongst the best in the industry. ALD outperforms 100.00% of its industry peers.
ALD's Operating Margin has been stable in the last couple of years.
ALD has a worse Gross Margin (38.06%) than 84.62% of its industry peers.
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
ALD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ALD has been reduced compared to 1 year ago.
The number of shares outstanding for ALD has been reduced compared to 5 years ago.
Compared to 1 year ago, ALD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.43 indicates that ALD is not in any danger for bankruptcy at the moment.
ALD has a Altman-Z score of 3.43. This is amongst the best in the industry. ALD outperforms 92.31% of its industry peers.
The Debt to FCF ratio of ALD is 6.48, which is on the high side as it means it would take ALD, 6.48 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.48, ALD is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that ALD has dependencies on debt financing.
The Debt to Equity ratio of ALD (1.80) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.37
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.25 indicates that ALD should not have too much problems paying its short term obligations.
ALD has a worse Current ratio (1.25) than 92.31% of its industry peers.
A Quick Ratio of 0.95 indicates that ALD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, ALD is doing worse than 69.23% of the companies in the same industry.
| 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.
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.
The Revenue has been growing slightly by 6.27% in the past year.
Measured over the past years, ALD shows a small growth in Revenue. The Revenue has been growing by 0.96% on average per year.
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 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 22.25, ALD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ALD indicates a slightly more expensive valuation: ALD is more expensive than 61.54% of the companies listed in the same industry.
ALD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 19.62, which indicates a rather expensive current valuation of ALD.
ALD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ALD is more expensive than 76.92% of the companies in the same industry.
ALD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALD is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALD indicates a slightly more expensive valuation: ALD is more expensive than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.38 | ||
| EV/EBITDA | 16.73 |
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)3.12
PEG (5Y)6
EPS Next 2Y7.91%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
ALD has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
ALD's Dividend Yield is comparable with the industry average which is at 3.94.
Compared to an average S&P500 Dividend Yield of 2.40, ALD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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.
ALD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.5%
EPS Next 2Y7.91%
EPS Next 3Y8.47%
FRA:ALD (5/30/2025, 7:00:00 PM)
198.26
+1.3 (+0.66%)
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 Cap127.42B
Analysts73.55
Price Target212.13 (7%)
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 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)-5.71%
PT rev (3m)-9.52%
EPS NQ rev (1m)2.95%
EPS NQ rev (3m)2.65%
EPS NY rev (1m)0.93%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 19.62 | ||
| P/S | 3.67 | ||
| P/FCF | 28.38 | ||
| P/OCF | 23.01 | ||
| P/B | 8.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.73 |
EPS(TTM)8.91
EY4.49%
EPS(NY)10.11
Fwd EY5.1%
FCF(TTM)6.98
FCFY3.52%
OCF(TTM)8.62
OCFY4.35%
SpS54.09
BVpS24.09
TBVpS-15.3
PEG (NY)3.12
PEG (5Y)6
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 | 3.43 |
F-Score5
WACC8.09%
ROIC/WACC1.37
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%