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Honeywell Technologies: Affirming Wide Moat Rating After Aerospace Spinoff; Shares Richly Valued
We're continuing research coverage of Honeywell Technologies, an automation equipment manufacturer, after the June 29 spinoff of its aerospace business.
Honeywell International Inc HON
Bulls Say, Bears Say
Bulls
The shift away from siloed, transactional sales toward connected systems with software overlays should continue to lower the cyclicality of operating performance and raise switching costs.
Bears
The spun-off aerospace business segment displayed strong countercyclical characteristics. Honeywell Technologies’ remaining portfolio risks outsize operating income declines in economic downturns.
Articles & Videos
Trading Information
- Previous Close Price
- $226.33
- Day Range
- $224.53–230.47
- 52-Week Range
- $218.10–496.36
- Bid/Ask
- $221.00 / $225.75
- Shares Outstanding
- 316.83M
- Market Cap
- $71.29B
- Volume/Avg
- 4M / 3M
Key Statistics
- Price/Earnings (Normalized)
- 10.60
- Price/Sales
- 1.96
- Dividend Yield (Trailing)
- 4.18%
- Dividend Yield (Forward)
- 4.23%
- Total Yield
- 7.74%
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, industrial automation, energy and sustainability solutions, and building automation. 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 around one third of its revenue from recurring aftermarket services.
- Sector
- Industrials
- Industry
- Conglomerates
- Stock Style Box
- Mid Core
- Total Number of Employees
- 101,000
- Website
- https://www.honeywell.com
Competitors
Valuation
|
Metric
|
HON
|
ROK
|
ASSA B
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.60 | 37.82 | 22.60 |
Price/Book Value | 5.25 | 14.59 | 3.48 |
Price/Sales | 1.96 | 5.91 | 2.56 |
Price/Cash Flow | 11.20 | 33.62 | 16.76 |
Price/Earnings
HON
ROK
ASSA B
Financial Strength
|
Metric
|
HON
|
ROK
|
ASSA B
|
|---|---|---|---|
Quick Ratio | 0.93 | 0.62 | 0.63 |
Current Ratio | 1.39 | 1.09 | 1.01 |
Interest Coverage | 3.91 | 9.04 | 8.16 |
Quick Ratio
HON
ROK
ASSA B
Profitability
|
Metric
|
HON
|
ROK
|
ASSA B
|
|---|---|---|---|
Return on Assets (Normalized) | 8.33% | 12.35% | 7.54% |
Return on Equity (Normalized) | 40.93% | 38.74% | 15.63% |
Return on Invested Capital (Normalized) | 13.91% | 19.73% | 10.72% |
Return on Assets
HON
ROK
ASSA B
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United States