Honeywell International (HON) in Brief

Honeywell International has moved 0.5% so far today on a volume of 62,026, compared to its average of 3,061,879. In contrast, the S&P 500 index moved 1.3%. Honeywell now trades at $213.50 per share.

Over the last 52 weeks, the stock moved 2.5%, with a high of $221.89 and a low of $166.63. During this time, the stock underperformed the S&P 500 index by 23.3%. Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The large-cap Industrials company has 99,000 full time employees and is based in Charlotte, NC. Honeywell International has returned a 1.8% dividend yield over the last 12 months.

An Negative Expected EPS Growth Rate with Low Leverage Levels:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $41,802 $36,709 $32,637 $34,392
Revenue Growth n/a -12.2% -11.1% 5.4%
Gross Margins 30.52% 33.7% 32.07% 31.98%
Gross Margins Growth n/a 10.42% -4.84% -0.28%
Operating Margins 16.04% 18.66% 17.45% 18.03%
Operating Margins Growth n/a 16.33% -6.48% 3.32%
Earnings Per Share $8.98 $8.41 $6.72 $7.91
EPS Growth n/a -6.35% -20.1% 17.71%
Free Cash Flow (MM) $5,606 $6,058 $5,302 $5,143
FCF Growth n/a 8.06% -12.48% -3.0%
Capital Expenditures (MM) $-828 $-839 $-906 $-895
Net Debt / EBITDA 0.75 0.8 1.14 0.99

Honeywell International Is Overvalued:

Compared to the Industrials sector's average of 21.46, Honeywell International has a trailing twelve month price to earnings (P/E) ratio of 27.3 and, based on its Eps guidance of 9.24, an expected P/E ratio of 23.1.

The firm's price to earnings growth (PEG) is 3.34, which indicates that it is overvalued in terms of its expected rate of earnings growth.

Honeywell International's price to book (P/B) ratio is 8.1 compared to its sector average of 3.7. The company may be overvalued in terms of its assets. As of the date of publication, the company is trading 213.5% above its fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 7.81 * 26.337) = $68.03

Honeywell International Is the Subject of Mixed Market Indicators:

25 analysts are following Honeywell International and have set target prices ranging from $187 to $265 per share. On average, they have given the company a rating of buy. At today's prices, HON is trading -1.46% away from its average analyst target price of $216.4 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 0.9% of the company's shares are tied to short positions. Institutions own 77.3% of Honeywell International's shares, while the insider ownership rate stands at 0.12%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $12,877,000,978.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.