NYSE:HON

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

HON

-2.3%

US Industrials

-1.1%

US Market


1 Year Return

17.4%

HON

4.5%

US Industrials

17.9%

US Market

Return vs Industry: HON exceeded the US Industrials industry which returned 4.5% over the past year.

Return vs Market: HON matched the US Market which returned 17.9% over the past year.


Shareholder returns

HONIndustryMarket
7 Day-0.5%-2.3%-1.1%
30 Day1.6%-1.1%1.4%
90 Day1.9%0.9%6.9%
1 Year19.2%17.4%7.4%4.5%20.3%17.9%
3 Year58.8%43.9%-15.9%-23.2%47.8%38.3%
5 Year102.7%75.0%3.4%-10.6%71.9%53.0%

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?

8.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HON ($179.88) is trading below our estimate of fair value ($196.76)

Significantly Below Fair Value: HON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HON is good value based on its PE Ratio (21.1x) compared to the Industrials industry average (21.1x).

PE vs Market: HON is poor value based on its PE Ratio (21.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HON is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: HON is overvalued based on its PB Ratio (6.9x) compared to the US Industrials industry average (4x).


Next Steps

Future Growth

How is Honeywell International forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HON's forecast earnings growth (4.9% per year) is above the savings rate (1.7%).

Earnings vs Market: HON's earnings (4.9% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: HON's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HON's revenue (3.3% 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 (30.4%)


Next Steps

Past Performance

How has Honeywell International performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HON has high quality earnings.

Growing Profit Margin: HON's current net profit margins (16.7%) are higher than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: HON's earnings have grown by 4.8% 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 (-9.2%) over the past year, making it difficult to compare to the Industrials industry average (-9.2%).


Return on Equity

High ROE: HON's Return on Equity (33.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Honeywell International's financial position?


Financial Position Analysis

Short Term Liabilities: HON's short term assets ($24.3B) exceed its short term liabilities ($18.1B).

Long Term Liabilities: HON's short term assets ($24.3B) exceed its long term liabilities ($21.9B).


Debt to Equity History and Analysis

Debt Level: HON's debt to equity ratio (84.4%) is considered high.

Reducing Debt: HON's debt to equity ratio has increased from 48.3% to 84.4% over the past 5 years.

Debt Coverage: HON's debt is well covered by operating cash flow (43.7%).

Interest Coverage: HON's interest payments on its debt are well covered by EBIT (73.6x coverage).


Balance Sheet

Inventory Level: HON has a low level of unsold assets or inventory.

Debt Coverage by Assets: HON's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

2.00%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Honeywell International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: HON's dividend (2%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HON's dividend (2%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 (39.4%), 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 (40.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Darius Adamczyk (53yo)

2.9yrs

Tenure

US$19,246,604

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Darius's total compensation ($USD19.25M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darius Adamczyk
Chairman of the Board2.9yrsUS$19.25m0.014% $17.9m
Gregory Lewis
Senior VP & CFO1.5yrsUS$2.61m0.0022% $2.8m
Mark James
Senior Vice President of Human Resources12.3yrsUS$7.03m0.024% $31.1m
Robert Mailloux
VP, Controller & Principal Accounting Officer0.6yrsno datano data
Mark Bendza
Vice President of Investor Relations0yrsno datano data
Anne Madden
Senior VP2.3yrsno data0.0016% $2.1m
Brian Cook
VP of Corporate Development and Global Head of M&A2.3yrsno datano data
S. Tedjarati
President of Global High Growth Regions2.1yrsno datano data
Rajeev Gautam
President and CEO of Performance Materials & Technologies0yrsUS$6.66m0.0053% $6.8m
John Waldron
President & CEO of Safety and Productivity Solutions0yrsno data0.0035% $4.4m

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: HON's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darius Adamczyk
Chairman of the Board2.9yrsUS$19.25m0.014% $17.9m
Linnet Deily
Independent Director14.1yrsUS$335.47k0.0011% $1.4m
Jaime Chico Pardo
Lead Director0yrsUS$342.77k0.000070% $89.7k
George Paz
Independent Director11.2yrsUS$330.43k0.0016% $2.0m
Kevin Burke
Independent Director10yrsUS$310.43k0.0025% $3.2m
D. Davis
Independent Director14.5yrsUS$317.74k0.0031% $4.0m
Clive Hollick
Independent Director16.7yrsUS$337.17k0.0027% $3.5m
Roger Fradin
Chairman of Homes & Global Distribution Business2yrsUS$9.98mno data
Grace Lieblein
Independent Director7.2yrsUS$295.66k0.00077% $987.0k
Judd Gregg
Independent Director8.8yrsUS$310.43k0.00089% $1.1m

10.0yrs

Average Tenure

67.5yo

Average Age

Experienced Board: HON's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HON insiders have only sold shares 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: NYSE
  • Founded: 1985
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: US$128.182b
  • Shares outstanding: 712.60m
  • Website: https://www.honeywell.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HONNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1985
HONLSE (London Stock Exchange)YesCommon StockGBUSDSep 1985
HON *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1985
ALDDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1985
ALDXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1985
HONSNSE (Santiago Stock Exchange)YesCommon StockCLUSDSep 1985
HONWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1985
ALDETLX (Eurotlx)YesCommon StockITEURSep 1985
HONBASE (Buenos Aires Stock Exchange)CEDEAR 4 REP 1 COM USD1ARARSOct 2000
HONB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD1BRBRLAug 2012

Biography

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The 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 the aftermarket, as well as wireless connectivity, and management and technical services. The company’s Honeywell Building Technologies segment offers advanced 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, maintenance, and upgrades of systems. Its Performance Materials and Technologies segment offers automation control, instrumentation, and advanced software and related services; catalysts and adsorbents, equipment, and consulting; and materials used to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as Honeywell forge connected solutions. The company’s Safety and Productivity Solutions segment provides personal protection equipment, apparel, gear, and footwear; gas detection technology; and cloud-based notification and emergency messaging; and mobile devices and software; supply chain and warehouse automation equipment, and software and solutions; custom-engineered sensors, switches, and controls; and software-based data and asset management productivity solutions. Honeywell International Inc. was incorporated in 1985 and is headquartered in Charlotte, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:28
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.