About Honeywell International Inc.
Honeywell International Inc. engages in the industrial automation, building automation, and energy and sustainability solutions businesses in the United States, Europe, and internationally. The Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies, including custom-engineered sensors and related services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. The Building Automation segment provides 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 system upgrade services. The Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions, as well as connectivity, data integration, and software solutions. The company was formerly known as AlliedSignal, Inc. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.
Honeywell International Inc. (HON) is a Industrials company in the Conglomerates industry with a market capitalisation of $64.1B. The stock trades at 7.77x trailing earnings and yields 1.37%.
- Sector
- Industrials
- Industry
- Conglomerates
- Market cap
- $64.1B
- P/E ratio
- 7.77
- Forward P/E
- 20.32
- EPS (TTM)
- $26.01
- Revenue (TTM)
- $38.1B
- Free cash flow
- $2.6B
- Profit margin
- 21.6%
- Dividend yield
- 1.37%
- Beta
- 0.90
- Shares outstanding
- 316.9M
Financial health: Fair6.8/10
6 strengths, 2 concerns. Weakest points: debt to equity, peg ratio.
- 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: 46.6% (Strong, benchmark > 15%) — Earns 46.6% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 36.5% (Watch, benchmark > 40%) — Keeps 36.5% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 21.6% (Strong, benchmark > 10%) — Turns 21.6% 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: 4.3% (Watch, benchmark > 10%) — Revenue changed 4.3% year on year, short of the > 10% mark.
- Earnings growth: 263.9% (Strong, benchmark > 10%) — Earnings changed 263.9% year on year, comfortably past the > 10% mark.
- PEG ratio: 3.35 (Concern, benchmark < 1) — At 3.35, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 36.1% (Strong, benchmark < 60%) — Pays out 36.1% of earnings as dividends, leaving room to keep paying.