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Honeywell International Inc HON

Morningstar Rating
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Stock XNAS Rating as of
$211.41 −0.57 (0.27%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Honeywell: This Wide-Moat Industrial Conglomerate Offers Investors Modest Upside

After taking a fresh look at this multi-industry stalwart, we’ve increased Honeywell’s fair value estimate to $238 per share from $226 derived from a slightly more bullish view on its growth prospects. We’ve maintained our wide-moat economic moat rating and Exemplary capital allocation rating. Near-term, we expect the ongoing narrow-body plane shortage to drive supranormal commercial aviation aftermarket growth, and the continual reshoring of supply chains to spur demand for Honeywell’s building and warehouse products.

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Price vs Fair Value

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HON is trading at a 652% premium.
Price
$211.95
Fair Value
$244.00
Uncertainty
Medium
1-Star Price
$968.20
5-Star Price
$658.70
Economic Moat
Snf
Capital Allocation
Dxdxtlfdhn

Bulls Say, Bears Say

Bulls

The shift away from purely transactional sales toward connected systems with software overlays should continue to lower the cyclicality of operating performance and raise switching costs.

Bears

Honeywell’s push to reduce its manufacturing footprint may backfire if it moves further from the customer and increases its reliance on fewer manufacturing sites.

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News

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Trading Information

Previous Close Price
$211.98
Day Range
$210.75–211.47
52-Week Range
$174.91–212.16
Bid/Ask
$211.33 / $211.64
Market Cap
$137.62 Bil
Volume/Avg
2,197 / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
22.33
Price/Sales
3.81
Dividend Yield (Trailing)
2.01%
Dividend Yield (Forward)
2.04%
Total Yield
4.47%

Company Profile

Honeywell traces its roots to 1885 with Albert Butz’s firm, Butz Thermo-Electric Regulator, which produced a predecessor to the modern thermostat. Other inventions by Honeywell include biodegradable detergent and autopilot. Today, Honeywell is a global multi-industry behemoth with one of the largest installed bases of equipment. It operates through four business segments: aerospace technologies (37% of 2023 company revenue), industrial automation (29%), energy and sustainability solutions (17%), and building automation (17%). Recently, Honeywell has made several portfolio changes to focus on fewer end markets and align with a set of secular growth trends. The firm is working diligently to expand its installed base, deriving 30% of its revenue from recurring aftermarket services.
Sector
Industrials
Industry
Conglomerates
Stock Style Box
Large Core
Total Number of Employees
95,000
Website
https://www.honeywell.com

Competitors

Valuation

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Metric
HON
MMM
DD
Price/Earnings (Normalized)
 22.3310.4123.45
Price/Book Value
 8.3911.431.43
Price/Sales
 3.811.712.97
Price/Cash Flow
 22.709.4715.42
Price/Earnings
HON
MMM
DD

Financial Strength

Metric
HON
MMM
DD
Quick Ratio
 1.181.191.42
Current Ratio
 1.661.642.33
Interest Coverage
 9.46−7.271.72
Quick Ratio
HON
MMM
DD

Profitability

Metric
HON
MMM
DD
Return on Assets (Normalized)
 9.52%10.67%3.84%
Return on Equity (Normalized)
 35.30%71.61%6.07%
Return on Invested Capital (Normalized)
 16.16%23.61%5.18%
Return on Assets
HON
MMM
DD
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