NasdaqGS:HON

Stock Analysis Report

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Market Cap

US$161.4b

Last Updated

2021/07/31 05:53 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Honeywell International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HON is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HON's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

HON

0.8%

US Industrials

-0.5%

US Market


1 Year Return

56.5%

HON

52.0%

US Industrials

35.9%

US Market

Return vs Industry: HON exceeded the US Industrials industry which returned 52% over the past year.

Return vs Market: HON exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

HONIndustryMarket
7 Day1.9%0.8%-0.5%
30 Day6.0%1.9%0.3%
90 Day4.8%2.8%3.1%
1 Year59.5%56.5%55.6%52.0%38.0%35.9%
3 Year67.5%50.8%28.3%16.8%62.9%52.7%
5 Year133.9%100.9%8.7%-5.6%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Honeywell International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HON ($233.79) is trading below our estimate of fair value ($300.38)

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


Price To Earnings Ratio

PE vs Industry: HON is good value based on its PE Ratio (32.8x) compared to the US Industrials industry average (33x).

PE vs Market: HON is poor value based on its PE Ratio (32.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: HON is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: HON is overvalued based on its PB Ratio (9x) compared to the US Industrials industry average (4.5x).


Future Growth

How is Honeywell International forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HON's forecast earnings growth (10.8% per year) is above the savings rate (2%).

Earnings vs Market: HON's earnings (10.8% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: HON's revenue (6.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HON's revenue (6.9% 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 (37.7%)


Past Performance

How has Honeywell International performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HON has high quality earnings.

Growing Profit Margin: HON's current net profit margins (14.6%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: HON's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: HON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HON had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Industrials industry average (-10.5%).


Return on Equity

High ROE: Whilst HON's Return on Equity (27.76%) 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 ($25.7B) exceed its short term liabilities ($18.1B).

Long Term Liabilities: HON's short term assets ($25.7B) do not cover its long term liabilities ($27.6B).


Debt to Equity History and Analysis

Debt Level: HON's debt to equity ratio (116.4%) is considered high.

Reducing Debt: HON's debt to equity ratio has increased from 74.1% to 116.4% over the past 5 years.

Debt Coverage: HON's debt is well covered by operating cash flow (28.5%).

Interest Coverage: HON's interest payments on its debt are well covered by EBIT (25.2x coverage).


Balance Sheet


Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HON's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: HON's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.54%).


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 reasonable payout ratio (51.8%), HON's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HON's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Darius Adamczyk (55 yo)

4.33yrs

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 ($USD19.08M) is above average for companies of similar size in the US market ($USD11.17M).

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 (3.2 years average tenure).


Board Members

Experienced Board: HON's board of directors are considered experienced (5 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Honeywell International Inc.
  • Ticker: HON
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: US$161.408b
  • Shares outstanding: 690.40m
  • Website: https://www.honeywell.com

Number of Employees


Location

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

Listings


Biography

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:53
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
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.