NYSE:HON

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.2%

HON

1.6%

US Industrials

0.4%

US Market


1 Year Return

7.9%

HON

-9.6%

US Industrials

6.9%

US Market

Return vs Industry: HON exceeded the US Industrials industry which returned -9.6% over the past year.

Return vs Market: HON matched the US Market which returned 6.9% over the past year.


Shareholder returns

HONIndustryMarket
7 Day1.2%1.6%0.4%
30 Day-0.7%-2.7%-1.1%
90 Day-4.3%-6.5%-0.5%
1 Year13.8%7.9%-6.0%-9.6%9.3%6.9%
3 Year68.7%52.0%-18.4%-26.1%45.8%36.4%
5 Year103.6%74.8%-1.8%-16.0%62.9%45.1%

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?

12.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HON ($165.57) is trading below our estimate of fair value ($188.41)

Significantly Undervalued: 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 (19.1x) compared to the Industrials industry average (20x).

PE vs Market: HON is poor value based on its PE Ratio (19.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: HON is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: HON is overvalued based on its PB Ratio (6.5x) 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 21 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HON's forecast earnings growth (5.2% per year) is above the savings rate (2.7%).

Earnings vs Market: HON's earnings (5.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: HON's revenue (3.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HON's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HON's Return on Equity is forecast to be very high in 3 years time (45.4%).


Next Steps

Past Performance

How has Honeywell International performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HON's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: HON's earnings growth over the past year (149.6%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: HON earnings growth over the past year (149.6%) exceeded the Industrials industry 11.3%.


Return on Equity

High ROE: Whilst HON's Return on Equity (34.84%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: HON has a higher Return on Assets than the Industrials industry average last year.


Return on Capital Employed

ROCE Improving: HON's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Honeywell International's financial position?


Financial Position Analysis

Short Term Liabilities: HON's short term assets ($26.2B) exceeds its short term liabilities ($19.9B)

Long Term Liabilities: HON's short term assets (26.2B) exceeds its long term liabilities (21.9B)


Debt to Equity History and Analysis

Debt Level: HON's debt to equity ratio (100.5%) is considered high

Reducing Debt: HON's debt to equity ratio has increased from 46.2% to 100.5% over the past 5 years.

Debt Coverage: HON's debt is well covered by operating cash flow (31.7%).

Interest Coverage: HON's interest payments on its debt are well covered by EBIT (76x 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 1.422410x debt).


Next Steps

Dividend

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

2.17%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HON's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HON's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (37.8%), 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 (41.7% payout ratio).


Next Steps

Management

What is the CEO of Honeywell International's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Darius Adamczyk (53yo)

2.6yrs

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 ($USD19.25M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: HON's management team is considered experienced (2 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: HON's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: HON insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,800,05821 Aug 19
Rajeev Gautam
EntityIndividual
Role
Senior Key Executive
President and CEO of Performance Materials & Technologies
Shares10,984
Max PriceUS$163.88
SellUS$1,180,15716 Aug 19
Darius Adamczyk
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares7,149
Max PriceUS$165.08
SellUS$2,276,63614 Aug 19
Jaime Chico Pardo
EntityIndividual
Role
Lead Director
Lead Director
Shares13,607
Max PriceUS$168.79
SellUS$847,90022 May 19
Vimal Kapur
EntityIndividual
Shares5,000
Max PriceUS$169.58
SellUS$7,629,05507 Mar 19
Timothy Mahoney
EntityIndividual
Shares49,443
Max PriceUS$154.30
SellUS$172,84807 Feb 19
Linnet Deily
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,162
Max PriceUS$148.75
SellUS$1,944,74221 Nov 18
Jaime Chico Pardo
EntityIndividual
Role
Lead Director
Lead Director
Shares13,400
Max PriceUS$145.13

Ownership Breakdown


Management Team

  • Anne Madden (54yo)

    Senior VP

    • Tenure: 2yrs
  • Darius Adamczyk (53yo)

    Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: US$19.25m
  • Mark James (57yo)

    Senior Vice President of Human Resources

    • Tenure: 11.9yrs
    • Compensation: US$7.03m
  • S. Tedjarati (57yo)

    President of Global High Growth Regions

    • Tenure: 1.8yrs
  • Rob Mailloux (51yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 0.3yrs
  • Rajeev Gautam (66yo)

    President and CEO of Performance Materials & Technologies

    • Tenure: 0yrs
    • Compensation: US$6.66m
  • John Waldron (43yo)

    President & CEO of Safety and Productivity Solutions

    • Tenure: 0yrs
  • Greg Lewis (51yo)

    Senior VP & CFO

    • Tenure: 1.2yrs
    • Compensation: US$2.61m
  • Brian Cook

    VP of Corporate Development and Global Head of M&A

    • Tenure: 2yrs

Board Members

  • Linnet Deily (73yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$335.47k
  • Jaime Chico Pardo (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$342.77k
  • George Paz (63yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$330.43k
  • Kevin Burke (68yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$310.43k
  • D. Davis (67yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$317.74k
  • Clive Hollick (74yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$337.17k
  • Roger Fradin (66yo)

    Chairman of Homes & Global Distribution Business

    • Tenure: 1.7yrs
    • Compensation: US$9.98m
  • Robin Washington (56yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$294.72k
  • Darius Adamczyk (53yo)

    Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: US$19.25m
  • Judd Gregg (72yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$310.43k

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$118.305b
  • Shares outstanding: 714.53m
  • 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
HONETLX (Eurotlx)YesCommon StockITEURSep 1985
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. Its Aerospace segment supplies products, software, and services for aircrafts and vehicles. This segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:36
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.