HONEYWELL INTERNATIONAL INC (ALD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ALD - US4385161066 - Common Stock
185 EUR
-0.42 (-0.23%)
Taking everything into account, ALD scores 6 out of 10 in our fundamental rating. ALD was compared to 18 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ALD had positive earnings in the past year.
- ALD had a positive operating cash flow in the past year.
- Each year in the past 5 years ALD has been profitable.
- In the past 5 years ALD always reported a positive cash flow from operatings.
1.2 Ratios
- ALD's Return On Assets of 7.57% is amongst the best of the industry. ALD outperforms 83.33% of its industry peers.
- ALD has a better Return On Equity (36.52%) than 83.33% of its industry peers.
- With an excellent Return On Invested Capital value of 9.86%, ALD belongs to the best of the industry, outperforming 88.89% 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 7.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 36.52% | ||
| ROIC | 9.86% |
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's Profit Margin of 15.07% is amongst the best of the industry. ALD outperforms 88.89% of its industry peers.
- In the last couple of years the Profit Margin of ALD has declined.
- The Operating Margin of ALD (19.89%) is better than 88.89% of its industry peers.
- In the last couple of years the Operating Margin of ALD has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 36.94%, ALD is doing worse than 72.22% of the companies in the same industry.
- ALD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 15.07% | ||
| GM | 36.94% |
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.
- ALD has less shares outstanding than it did 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
- ALD has an Altman-Z score of 3.19. This indicates that ALD is financially healthy and has little risk of bankruptcy at the moment.
- ALD has a Altman-Z score of 3.19. This is amongst the best in the industry. ALD outperforms 88.89% of its industry peers.
- ALD has a debt to FCF ratio of 6.01. This is a slightly negative value and a sign of low solvency as ALD would need 6.01 years to pay back of all of its debts.
- ALD's Debt to FCF ratio of 6.01 is fine compared to the rest of the industry. ALD outperforms 77.78% of its industry peers.
- ALD has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
- ALD has a worse Debt to Equity ratio (2.20) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.27
WACC7.75%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that ALD should not have too much problems paying its short term obligations.
- ALD has a Current ratio of 1.36. This is in the lower half of the industry: ALD underperforms 77.78% of its industry peers.
- ALD has a Quick Ratio of 1.04. This is a normal value and indicates that ALD is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of ALD (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.35% over the past year.
- The Earnings Per Share has been growing slightly by 3.71% on average over the past years.
- The Revenue has been growing slightly by 7.45% 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)6.35%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%9.3%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
3.2 Future
- The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y5.98%
EPS Next 2Y4.29%
EPS Next 3Y6.21%
EPS Next 5Y9.36%
Revenue Next Year2.91%
Revenue Next 2Y2.1%
Revenue Next 3Y3.22%
Revenue Next 5Y4.94%
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
- Based on the Price/Earnings ratio of 20.93, the valuation of ALD can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ALD is on the same level as its industry peers.
- ALD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- The Price/Forward Earnings ratio is 20.73, which indicates a rather expensive current valuation of ALD.
- ALD's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, ALD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 20.73 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALD is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, ALD is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.73 | ||
| EV/EBITDA | 16.23 |
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 excellent profitability rating of ALD may justify a higher PE ratio.
PEG (NY)3.5
PEG (5Y)5.64
EPS Next 2Y4.29%
EPS Next 3Y6.21%
5. Dividend
5.1 Amount
- ALD has a Yearly Dividend Yield of 2.14%.
- Compared to an average industry Dividend Yield of 2.95, ALD has a dividend in line with its industry peers.
- ALD's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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
- 48.21% 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.
DP48.21%
EPS Next 2Y4.29%
EPS Next 3Y6.21%
HONEYWELL INTERNATIONAL INC / ALD.DE FAQ
Can you provide the ChartMill fundamental rating for HONEYWELL INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 6 / 10 to ALD.DE.
What is the valuation status for ALD stock?
ChartMill assigns a valuation rating of 4 / 10 to HONEYWELL INTERNATIONAL INC (ALD.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for HONEYWELL INTERNATIONAL INC?
HONEYWELL INTERNATIONAL INC (ALD.DE) has a profitability rating of 8 / 10.
How financially healthy is HONEYWELL INTERNATIONAL INC?
The financial health rating of HONEYWELL INTERNATIONAL INC (ALD.DE) is 5 / 10.
What is the expected EPS growth for HONEYWELL INTERNATIONAL INC (ALD.DE) stock?
The Earnings per Share (EPS) of HONEYWELL INTERNATIONAL INC (ALD.DE) is expected to grow by 5.98% in the next year.