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HON

Honeywell InternationalLSE:HON Stock Report

Last Price

US$159.07

Market Cap

US$147.0b

7D

0%

1Y

0%

Updated

19 Jan, 2022

Data

Company Financials +
HON fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends5/6

HON Stock Overview

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide.

Honeywell International Competitors

Smiths Group

LSE:SMIN

UK£6.3b

Apple

NasdaqGS:AAPL

US$2.7t

Alphabet

NasdaqGS:GOOG.L

US$1.8t

Amazon.com

NasdaqGS:AMZN

US$1.6t

Price History & Performance

Summary of all time highs, changes and price drops for Honeywell International
Historical stock prices
Current Share PriceUS$159.07
52 Week HighUS$235.73
52 Week LowUS$195.50
Beta1.17
1 Month Change0%
3 Month Change0%
1 Year Change0%
3 Year Change0%
5 Year Change34.39%
Change since IPO2,622.05%

Recent News & Updates

Shareholder Returns

HONGB IndustrialsGB Market
7D0%-4.9%-1.0%
1Y0%18.0%8.3%

Return vs Industry: HON underperformed the UK Industrials industry which returned 18.3% over the past year.

Return vs Market: HON underperformed the UK Market which returned 8.3% over the past year.

Price Volatility

Is HON's price volatile compared to industry and market?
HON volatility
HON Average Weekly Movement15.0%
Industrials Industry Average Movement4.5%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: HON is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: HON's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
1985103,000Darius Adamczykhttps://www.honeywell.com

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; thermal systems; and connected solutions and data services for aftermarket, as well as wireless connectivity and management services. The company’s Honeywell Building Technologies segment offers software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; remote patient monitoring systems; e-cooling heat transfer agents; and installation and upgrades of systems.

Honeywell International Fundamentals Summary

How do Honeywell International's earnings and revenue compare to its market cap?
HON fundamental statistics
Market CapUS$147.04b
Earnings (TTM)US$5.47b
Revenue (TTM)US$34.64b

26.9x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HON income statement (TTM)
RevenueUS$34.64b
Cost of RevenueUS$23.43b
Gross ProfitUS$11.20b
ExpensesUS$5.73b
EarningsUS$5.47b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)7.95
Gross Margin32.34%
Net Profit Margin15.80%
Debt/Equity Ratio116.4%

How did HON perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

47%

Payout Ratio

Valuation

Is Honeywell International undervalued compared to its fair value and its price relative to the market?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HON ($159.07) is trading below our estimate of fair value ($290.46)

Significantly Below Fair Value: HON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HON is poor value based on its PE Ratio (26.9x) compared to the European Industrials industry average (21.4x).

PE vs Market: HON is poor value based on its PE Ratio (26.9x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: HON is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: HON is overvalued based on its PB Ratio (8.2x) compared to the XE Industrials industry average (1.4x).


Future Growth

How is Honeywell International forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HON's forecast earnings growth (9.8% per year) is above the savings rate (0.9%).

Earnings vs Market: HON's earnings (9.8% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: HON's earnings are forecast to grow, but not significantly.

Revenue vs Market: HON's revenue (6.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: HON's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HON's Return on Equity is forecast to be high in 3 years time (39.8%)


Past Performance

How has Honeywell International performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HON has high quality earnings.

Growing Profit Margin: HON's current net profit margins (15.8%) are higher than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: HON's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: HON's earnings growth over the past year (9.9%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: HON earnings growth over the past year (9.9%) underperformed the Industrials industry 59.9%.


Return on Equity

High ROE: Whilst HON's Return on Equity (30.61%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Honeywell International's financial position?


Financial Position Analysis

Short Term Liabilities: HON's short term assets ($26.0B) exceed its short term liabilities ($20.2B).

Long Term Liabilities: HON's short term assets ($26.0B) exceed its long term liabilities ($25.9B).


Debt to Equity History and Analysis

Debt Level: HON's net debt to equity ratio (49.4%) is considered high.

Reducing Debt: HON's debt to equity ratio has increased from 81.8% to 116.4% over the past 5 years.

Debt Coverage: HON's debt is well covered by operating cash flow (29.2%).

Interest Coverage: HON's interest payments on its debt are well covered by EBIT (28.1x coverage).


Balance Sheet


Dividend

What is Honeywell International current dividend yield, its reliability and sustainability?

1.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HON's dividend (1.84%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: HON's dividend (1.84%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


Stability and Growth of Payments

Stable Dividend: HON's dividends per share have been stable in the past 10 years.

Growing Dividend: HON's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.3%), HON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HON's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Darius Adamczyk (55 yo)

4.83yrs

Tenure

US$19,075,281

Compensation

Mr. Darius E. Adamczyk is Chairman and Chief Executive Officer of Honeywell International Inc. since April 2018, a leading software-industrial company that helps connect everything from aircraft, cars, hom...


CEO Compensation Analysis

Compensation vs Market: Darius's total compensation ($USD19.08M) is above average for companies of similar size in the UK market ($USD3.97M).

Compensation vs Earnings: Darius's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HON's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: HON's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Honeywell International Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Honeywell International Inc.
  • Ticker: HON
  • Exchange: LSE
  • Founded: 1985
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Implied Market Cap: US$147.040b
  • Shares outstanding: 688.42m
  • Website: https://www.honeywell.com

Number of Employees


Location

  • Honeywell International Inc.
  • 300 South Tryon Street
  • Charlotte
  • North Carolina
  • 28202
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:13
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.