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HON

Honeywell International NasdaqGS:HON Stock Report

Last Price

US$198.51

Market Cap

US$133.7b

7D

3.2%

1Y

-14.4%

Updated

11 Aug, 2022

Data

Company Financials +
HON fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends5/6

HON Stock Overview

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

Honeywell International Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Honeywell International
Historical stock prices
Current Share PriceUS$198.51
52 Week HighUS$233.80
52 Week LowUS$167.35
Beta1.09
1 Month Change14.34%
3 Month Change2.57%
1 Year Change-14.41%
3 Year Change22.33%
5 Year Change46.12%
Change since IPO2,144.64%

Recent News & Updates

Aug 08

Honeywell, Balancing Energy Supply And Demand

Complicated by extreme weather and the renewable revolution, utility-to-user electricity control systems must become more robust. Through its flow battery, remote-set thermostat, and quantum computing technologies, Honeywell could well become the key player in this equation. However, the company still carries the stigma of a conglomerate and might benefit at this juncture from bringing more focus to its mission. "If you can't measure it, you can't improve it," so said W. Edwards Deming and Peter Drucker. This principle is core to the functioning of a servo or "control system", defined as: "A system of devices that manages, commands, directs, or regulates the behavior of other [interacting] devices or systems to achieve a desired result. A control system achieves this through control loops, which are a process designed to maintain a process variable at a desired set point [that themselves are subject to change]." The thermostat represents a basic, but increasingly important, control system wherein it compares the temperature to a desired set point before 'instructing' your furnace or air conditioner to cycle on or off. If your windows are open during the dead of winter or the scorch of summer, the system must 'work' harder to maintain your comfort. Now, layer on a little complexity as with millions of homes, businesses, and the growing number of EV's that rely on utility-supplied electricity. Then, factor in weather changes suddenly putting extraordinary loads on the system. Finally, add to this the fickle nature of solar and wind energy as when the sun doesn't shine, or turbines don't spin. Obviously, it is not difficult to imagine the order-of-magnitude advancements required to manage the supply and demand for electric power. They include: Storing copious quantities of renewable electricity in anticipation of need. Modulating those needs continually but especially during times of peak load. Managing interconnected systems dynamically, in real-time, with minimal effort. Addressing these three components, Honeywell (HON) has moved into a competitive position near the center of markets that are now expanding exponentially because of climate change and the renewable revolution. And lest anyone doubts that climate change is real, read NOAA's collection of longitudinal research on the topic and/or observe what's going on around the globe - melting glaciers, rising seas, disappearing rivers, draining reservoirs, unabating fires, and wildlife under threat. Open these imbedded links and you may gain insight into the enormous magnitude of what we're dealing with here. Flow Batteries I've written before on SA about flow batteries, touching on why this technology may be central to capturing and storing solar and wind energy before it finds use on a power grid. In a nutshell: "In contrast to traditional batteries wherein the electrolytes mix readily with conductors in a single encased cell, in flow batteries the fluid is separated into two tanks and electrons flow through electrochemical cells and a membrane which separates them; the larger the tanks, the more electricity can be generated. This gives flow batteries the distinct advantage of being able to store energy in quantity, before it is needed, as it is created, for example, by wind turbines and solar panels." Believing this, the Department of Defense recently tapped Lockheed Martin (LMT) to install their "GridStar" system in support of the U.S. Army's grid at Fort Carson, Colorado. Many people, I among them, are interested to know about specifics. However, they are "top secret" only available to a select few with clearance or under NDA agreements. In addition to the classified nature of defense contracting, this designation could indicate how competitively important Lockheed views its flow battery technology. Enter Honeywell who could become another major player in the flow batteries space and, like Lockheed, is "not talking about the exact chemistry [other than to say] it is a non-rare earth element." Vanadium, iron, zinc bromine, or another metal, we do not know. However, we do know that Honeywell is targeting "long-duration", "gigawatt-scale storage" with deployment of smaller pilot projects this year and next starting at Duke Energy's North Carolina testing facility. Smart Thermostats Remember Honeywell's iconic thermostat? You know that round olive-tan jobbie with the saw-toothed plastic dial used to "set" the desired temperature in front of the red arrowhead indicator. With the help of a hidden coil spring and mercury switch (not exactly solid state then), it was an effective and uncomplicated way to operate one's home HVAC. Fast forward to when Honeywell announced that it would provide utility companies, with the consent of their customers, the ability to control remotely wi-fi-enabled / "smart" thermostats. These so-called "demand-response thermostats" were slow to be adopted but are now expected to grow at a compound annual growth rate ((CAGR)) of 23% over the next few years. In 2021, Texans experienced this future. "When a cold snap melted down the Electric Reliability Council of Texas' grid, some Lone Star State residential electric customers were shocked to learn they had enrolled in programs that charged them for power at the rate it was going for on ERCOT's market at the moment they were consuming it." … Moreover … "[That summer's] heat wave in Texas brought another surprise, this time to residential electric customers who had enrolled in programs that allowed their power providers to jack up their thermostat a few degrees during a heat wave to reduce overall load." Energy Management I am also intrigued that Honeywell is moving aggressively forward with quantum computing, which, coupled with applications, could help us manage complex environmental challenges. To this end, Honeywell claims on its website to be: "…the only industrial company with the advantage of owning the supply chain of technology assets to produce quantum systems - from refrigeration units to control logic"; hmm.

Shareholder Returns

HONUS IndustrialsUS Market
7D3.2%3.7%1.3%
1Y-14.4%-20.3%-11.7%

Return vs Industry: HON exceeded the US Industrials industry which returned -21.2% over the past year.

Return vs Market: HON underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is HON's price volatile compared to industry and market?
HON volatility
HON Average Weekly Movement3.3%
Industrials Industry Average Movement4.8%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
188599,000Darius 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, 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; and installation, maintenance, and upgrades of systems.

Honeywell International Inc. Fundamentals Summary

How do Honeywell International's earnings and revenue compare to its market cap?
HON fundamental statistics
Market CapUS$133.73b
Earnings (TTM)US$5.08b
Revenue (TTM)US$34.46b

26.3x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HON income statement (TTM)
RevenueUS$34.46b
Cost of RevenueUS$23.40b
Gross ProfitUS$11.06b
Other ExpensesUS$5.98b
EarningsUS$5.08b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.54
Gross Margin32.09%
Net Profit Margin14.74%
Debt/Equity Ratio103.9%

How did HON perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

52%

Payout Ratio

Does HON pay a reliable dividends?

See HON dividend history and benchmarks
When do you need to buy HON by to receive an upcoming dividend?
Honeywell International dividend dates
Ex Dividend DateAug 11 2022
Dividend Pay DateSep 02 2022
Days until Ex dividend2 days
Days until Dividend pay date20 days

Does HON pay a reliable dividends?

See HON dividend history and benchmarks