About Honeywell International Inc.
Honeywell International Inc. (HON) is a Consumer Cyclical company in the Aircraft Engines & Engine Parts industry with a market capitalisation of $68.7B. The stock trades at 7.97x trailing earnings and yields 2.06%.
- Sector
- Consumer Cyclical
- Industry
- Aircraft Engines & Engine Parts
- Market cap
- $68.7B
- P/E ratio
- 7.97
- EPS (TTM)
- $7.36
- Revenue (TTM)
- $37.4B
- Free cash flow
- $5.4B
- Profit margin
- 12.6%
- Dividend yield
- 2.06%
- Shares outstanding
- 316.9M
Financial health: Fair6/10
4 strengths, 2 concerns. Weakest points: debt to equity, earnings growth.
- Debt to equity: 2.06 (Concern, benchmark < 0.5) — Debt of 2.06x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 2.9y (Strong, benchmark < 4 years) — Net debt of $15.8B is 2.9x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 1.30 (Watch, benchmark > 1.5) — Short-term assets cover 1.30x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 34.0% (Strong, benchmark > 15%) — Earns 34.0% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 36.6% (Watch, benchmark > 40%) — Keeps 36.6% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 12.6% (Strong, benchmark > 10%) — Turns 12.6% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $5.4B (Strong, benchmark positive) — Generated $5.4B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 7.8% (Watch, benchmark > 10%) — Revenue changed 7.8% year on year, short of the > 10% mark.
- Earnings growth: -17.1% (Concern, benchmark > 10%) — Earnings changed -17.1% year on year, well short of the > 10% mark.
- Payout ratio: 62.9% (Watch, benchmark < 60%) — Pays out 62.9% of earnings as dividends — above the level usually considered sustainable.