Wide-moat-rated Honeywell reported good first-quarter results, with organic revenue growth of 3% and segment margin expansion of 20 basis points coming in at the top end of management’s guidance range and adjusted EPS of $2.25 exceeding guidance. Honeywell’s reported sales of $9.1 billion were about 1% above the FactSet consensus estimate, and the firm’s adjusted EPS was 3.5% higher than consensus.
Honeywell is making several organic bets in mission-critical end markets that should yield triple-digit internal rates of return over the long term, including in quantum computing and building automation.
Honeywell may fall short of its ambitious long-term organic revenue growth and margin expansion goals.
|
Metric
|
HON
|
RTX
|
GE
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.38 | 19.54 | 48.14 |
Price/Book Value | 7.66 | 2.22 | 5.91 |
Price/Sales | 3.48 | 1.99 | 2.55 |
Price/Cash Flow | 20.72 | 21.54 | 42.18 |
|
Metric
|
HON
|
RTX
|
GE
|
|---|---|---|---|
Quick Ratio | 1.18 | 0.64 | 0.76 |
Current Ratio | 1.66 | 1.07 | 1.17 |
Interest Coverage | 9.46 | 3.15 | 5.22 |
|
Metric
|
HON
|
RTX
|
GE
|
|---|---|---|---|
Return on Assets (Normalized) | 9.49% | 2.51% | 3.12% |
Return on Equity (Normalized) | 34.73% | 6.05% | 17.00% |
Return on Invested Capital (Normalized) | 16.29% | 5.17% | 10.09% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
MSBHF
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MTSUY
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HTHIY
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HTHIF
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MITSF
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MITSY
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ITOCY
| ITOCHU Corp ADR | — | Kzpsbs | $64.2 Bil | |
MMM
| 3M Co | Dtffppf | Jrtnhpd | $50.8 Bil | |
KYOCY
| Kyocera Corp ADR | Qfflwmqfh | Qtfxp | $17.4 Bil |
