207.38 USD
+2.14 (+1.04%)
207.41 USD
+0.03 (+0.01%)
Taking everything into account, HON scores 6 out of 10 in our fundamental rating. HON was compared to 7 industry peers in the Industrial Conglomerates industry. While HON has a great profitability rating, there are some minor concerns on its financial health. HON is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HON had positive earnings in the past year.
In the past year HON had a positive cash flow from operations.
Each year in the past 5 years HON has been profitable.
Each year in the past 5 years HON had a positive operating cash flow.
1.2 Ratios
HON has a better Return On Assets (7.57%) than 85.71% of its industry peers.
HON has a Return On Equity of 36.52%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 9.86%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HON is above the industry average of 7.93%.
| 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
HON has a better Profit Margin (15.07%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of HON has declined.
HON has a Operating Margin of 19.89%. This is amongst the best in the industry. HON outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of HON has remained more or less at the same level.
With an excellent Gross Margin value of 36.94%, HON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
HON'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
HON 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, HON has less shares outstanding
Compared to 5 years ago, HON has less shares outstanding
Compared to 1 year ago, HON has a worse debt to assets ratio.
2.2 Solvency
HON has an Altman-Z score of 3.11. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, HON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
HON has a debt to FCF ratio of 6.01. This is a slightly negative value and a sign of low solvency as HON would need 6.01 years to pay back of all of its debts.
HON's Debt to FCF ratio of 6.01 is amongst the best of the industry. HON outperforms 100.00% of its industry peers.
HON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
HON's Debt to Equity ratio of 2.20 is fine compared to the rest of the industry. HON outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.26
WACC7.81%
2.3 Liquidity
HON has a Current Ratio of 1.36. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.36, HON perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that HON should not have too much problems paying its short term obligations.
HON's Quick ratio of 1.04 is in line compared to the rest of the industry. HON outperforms 57.14% of its industry peers.
| 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.
HON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.71% yearly.
The Revenue has been growing slightly by 7.45% in the past year.
HON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.96% yearly.
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 Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue Next Year6.54%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
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
HON is valuated rather expensively with a Price/Earnings ratio of 19.66.
Compared to the rest of the industry, the Price/Earnings ratio of HON indicates a rather cheap valuation: HON is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. HON is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.36, the valuation of HON can be described as rather expensive.
HON's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HON to the average of the S&P500 Index (23.92), we can say HON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
HON's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HON is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 15.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)5.3
EPS Next 2Y4.61%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, HON has a reasonable but not impressive dividend return.
HON's Dividend Yield is rather good when compared to the industry average which is at 4.53. HON pays more dividend than 85.71% of the companies in the same industry.
HON's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of HON has a limited annual growth rate of 5.64%.
HON has been paying a dividend for at least 10 years, so it has a reliable track record.
HON has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HON pays out 48.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.21%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
207.38
+2.14 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners80.8%
Inst Owner Change0.81%
Ins Owners0.04%
Ins Owner Change0.14%
Market Cap131.66B
Revenue(TTM)40.67B
Net Income(TTM)6.13B
Analysts73.71
Price Target241.54 (16.47%)
Short Float %1.47%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend4.46
Dividend Growth(5Y)5.64%
DP48.21%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.64%
Min EPS beat(2)2.48%
Max EPS beat(2)8.81%
EPS beat(4)4
Avg EPS beat(4)7.24%
Min EPS beat(4)2.48%
Max EPS beat(4)12.31%
EPS beat(8)7
Avg EPS beat(8)4.36%
EPS beat(12)10
Avg EPS beat(12)3.47%
EPS beat(16)13
Avg EPS beat(16)3.05%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)1.59%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.59%
Min Revenue beat(4)1.37%
Max Revenue beat(4)1.79%
Revenue beat(8)5
Avg Revenue beat(8)0.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)-0.09%
PT rev (1m)-1.97%
PT rev (3m)-6.84%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-6.36%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 19.36 | ||
| P/S | 3.24 | ||
| P/FCF | 21.36 | ||
| P/OCF | 17.59 | ||
| P/B | 7.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.35 |
EPS(TTM)10.55
EY5.09%
EPS(NY)10.71
Fwd EY5.17%
FCF(TTM)9.71
FCFY4.68%
OCF(TTM)11.79
OCFY5.68%
SpS64.06
BVpS26.43
TBVpS-22.19
PEG (NY)2
PEG (5Y)5.3
Graham Number79.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 36.52% | ||
| ROCE | 13.88% | ||
| ROIC | 9.86% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 30.7% | ||
| OM | 19.89% | ||
| PM (TTM) | 15.07% | ||
| GM | 36.94% | ||
| FCFM | 15.16% |
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%
ROICexgc growth 3Y-3.6%
ROICexgc 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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 6.01 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 85.12% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | 100.57% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.11 |
F-Score4
WACC7.81%
ROIC/WACC1.26
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)6.35%
EPS 3Y6.74%
EPS 5Y3.71%
EPS Q2Q%9.3%
EPS Next Y9.85%
EPS Next 2Y4.61%
EPS Next 3Y6.29%
EPS Next 5Y9.36%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y3.83%
Revenue growth 5Y0.96%
Sales Q2Q%6.99%
Revenue Next Year6.54%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y4.94%
EBIT growth 1Y3.23%
EBIT growth 3Y2.52%
EBIT growth 5Y1.51%
EBIT Next Year20.52%
EBIT Next 3Y9.51%
EBIT Next 5Y10.87%
FCF growth 1Y60.73%
FCF growth 3Y-1.38%
FCF growth 5Y-4.03%
OCF growth 1Y57.55%
OCF growth 3Y0.32%
OCF growth 5Y-2.44%
HONEYWELL INTERNATIONAL INC / HON FAQ
What is the fundamental rating for HON stock?
ChartMill assigns a fundamental rating of 6 / 10 to HON.
What is the valuation status for HON stock?
ChartMill assigns a valuation rating of 5 / 10 to HONEYWELL INTERNATIONAL INC (HON). This can be considered as Fairly Valued.
Can you provide the profitability details for HONEYWELL INTERNATIONAL INC?
HONEYWELL INTERNATIONAL INC (HON) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HON stock?
The Price/Earnings (PE) ratio for HONEYWELL INTERNATIONAL INC (HON) is 19.66 and the Price/Book (PB) ratio is 7.85.
Is the dividend of HONEYWELL INTERNATIONAL INC sustainable?
The dividend rating of HONEYWELL INTERNATIONAL INC (HON) is 6 / 10 and the dividend payout ratio is 48.21%.