HONEYWELL INTERNATIONAL INC (HON)
US4385161066 - Common Stock
Taking everything into account, HON scores 6 out of 10 in our fundamental rating. HON was compared to 10 industry peers in the Industrial Conglomerates industry. HON scores excellent on profitability, but there are some minor concerns on its financial health. HON has a correct valuation and a medium 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.
HON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HON (8.72%) is better than 100.00% of its industry peers.
HON's Return On Equity of 34.81% is amongst the best of the industry. HON outperforms 90.00% of its industry peers.
HON has a Return On Invested Capital of 11.85%. This is amongst the best in the industry. HON outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HON is above the industry average of 7.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 34.81% | ||
| ROIC | 11.85% |
ROA(3y)8.59%
ROA(5y)8.73%
ROE(3y)31.76%
ROE(5y)31.14%
ROIC(3y)12.51%
ROIC(5y)12.3%
1.3 Margins
The Profit Margin of HON (15.52%) is better than 100.00% of its industry peers.
HON's Profit Margin has been stable in the last couple of years.
The Operating Margin of HON (20.84%) is better than 100.00% of its industry peers.
HON's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 37.46%, HON is doing good in the industry, outperforming 80.00% of the companies in the same industry.
HON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.84% | ||
| PM (TTM) | 15.52% | ||
| GM | 37.46% |
OM growth 3Y0.24%
OM growth 5Y2.83%
PM growth 3Y1.77%
PM growth 5Y-0.95%
GM growth 3Y5.14%
GM growth 5Y4.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HON is creating some value.
Compared to 1 year ago, HON has less shares outstanding
HON has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HON is higher compared to a year ago.
2.2 Solvency
HON has an Altman-Z score of 3.73. This indicates that HON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HON (3.73) is better than 100.00% of its industry peers.
HON has a debt to FCF ratio of 4.60. This is a neutral value as HON would need 4.60 years to pay back of all of its debts.
HON's Debt to FCF ratio of 4.60 is fine compared to the rest of the industry. HON outperforms 70.00% of its industry peers.
HON has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
HON has a Debt to Equity ratio of 1.46. This is comparable to the rest of the industry: HON outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.42
WACC8.35%
2.3 Liquidity
HON has a Current Ratio of 1.66. This is a normal value and indicates that HON is financially healthy and should not expect problems in meeting its short term obligations.
HON's Current ratio of 1.66 is amongst the best of the industry. HON outperforms 90.00% of its industry peers.
A Quick Ratio of 1.28 indicates that HON should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.28, HON belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
HON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.
HON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.92% yearly.
HON shows a small growth in Revenue. In the last year, the Revenue has grown by 2.64%.
The Revenue has been decreasing by -2.59% on average over the past years.
EPS 1Y (TTM)4.59%
EPS 3Y8.9%
EPS 5Y2.92%
EPS growth Q2Q8.7%
Revenue 1Y (TTM)2.64%
Revenue growth 3Y3.95%
Revenue growth 5Y-2.59%
Revenue growth Q2Q2.72%
3.2 Future
The Earnings Per Share is expected to grow by 11.15% on average over the next years. This is quite good.
HON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y9.66%
EPS Next 2Y9.56%
EPS Next 3Y9.26%
EPS Next 5Y11.16%
Revenue Next Year4.3%
Revenue Next 2Y4.98%
Revenue Next 3Y4.98%
Revenue Next 5Y5.71%
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
The Price/Earnings ratio is 20.95, which indicates a rather expensive current valuation of HON.
The rest of the industry has a similar Price/Earnings ratio as HON.
HON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
HON is valuated rather expensively with a Price/Forward Earnings ratio of 17.80.
Based on the Price/Forward Earnings ratio, HON is valued cheaper than 90.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HON to the average of the S&P500 Index (20.72), we can say HON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 17.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HON.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HON indicates a somewhat cheap valuation: HON is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.22 | ||
| EV/EBITDA | 15.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HON does not grow enough to justify the current Price/Earnings ratio.
HON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)7.17
EPS Next 2Y9.56%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
HON has a Yearly Dividend Yield of 2.21%.
Compared to an average industry Dividend Yield of 6.79, HON pays a bit more dividend than its industry peers.
HON's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
On average, the dividend of HON grows each year by 7.24%, which is quite nice.
HON has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HON decreased recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HON pays out 49.47% 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.
DP49.47%
EPS Next 2Y9.56%
EPS Next 3Y9.26%
HONEYWELL INTERNATIONAL INC
NASDAQ:HON (5/3/2024, 12:47:58 PM)
195.89
+2.25 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap127.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 17.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.17
PEG (5Y)7.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 34.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.84% | ||
| PM (TTM) | 15.52% | ||
| GM | 37.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.59%
EPS 3Y8.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.64%
Revenue growth 3Y3.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y