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Honeywell International Inc HON

Morningstar Rating
$196.75 −1.95 (0.98%)
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Company Report

Aerospace Should Continue to Deliver Strong Growth for Honeywell in 2024

In our view, Honeywell is one of the strongest multi-industry firms in operation today. We think the company has successfully pivoted to capture multiple ESG trends, including energy efficiency, emissions reduction, and e-commerce. We predicate our long-term thesis on increased demand for warehouse automation solutions, despite tough 2023 comps; new digital offerings that promote data analytics in powerplants, as well as remote security management, and energy savings in building solutions; and the broader commercial aerospace recovery. Over the next five years, we think Honeywell is capable of mid-single-digit top-line growth, incremental operating margins in the high 20s to low 30s, 9%-10% adjusted earnings per share growth, and free cash flow margins in the midteens.

Price vs Fair Value

HON is trading at a 11% discount.
Price
$198.73
Fair Value
$451.00
Uncertainty
Medium
1-Star Price
$541.34
5-Star Price
$351.30
Economic Moat
Tcgnq
Capital Allocation
Cfmrntkdft

Bulls Say, Bears Say

Bulls

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.

Bears

Honeywell may fall short of its ambitious long-term organic revenue growth and margin expansion goals.

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News

Trading Information

Previous Close Price
$198.70
Day Range
$196.75197.90
52-Week Range
$174.91210.87
Bid/Ask
$196.63 / $196.86
Market Cap
$128.64 Bil
Volume/Avg
2,206 / 3.0 Mil

Key Statistics

Price/Earnings (Normalized)
21.35
Price/Sales
3.62
Dividend Yield (Trailing)
2.12%
Dividend Yield (Forward)
2.17%
Total Yield
4.84%

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. Today, Honeywell is a global multi-industry behemoth with one of the largest installed bases of equipment. It operates through four business segments: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. In recent years, the firm has made several portfolio changes, including the addition of Intelligrated in 2016, as well as the spinoffs of Garrett and Resideo in 2018. In 2019, the firm launched Honeywell Forge, its enterprise performance management software solution that leverages the firm's domain expertise in buildings, airlines, and critical infrastructure.
Sector
Industrials
Industry
Conglomerates
Stock Style Box
Large Core
Total Number of Employees
95,000

Competitors

Valuation

Metric
HON
MMM
EMR
Price/Earnings (Normalized)
21.359.9721.85
Price/Book Value
8.1710.592.95
Price/Sales
3.621.563.85
Price/Cash Flow
26.678.0220.33
Price/Earnings
HON
MMM
EMR

Financial Strength

Metric
HON
MMM
EMR
Quick Ratio
0.840.710.62
Current Ratio
1.271.071.12
Interest Coverage
9.94−9.558.67
Quick Ratio
HON
MMM
EMR

Profitability

Metric
HON
MMM
EMR
Return on Assets (Normalized)
9.49%10.56%7.03%
Return on Equity (Normalized)
34.73%54.15%17.23%
Return on Invested Capital (Normalized)
16.29%21.33%8.75%
Return on Assets
HON
MMM
EMR
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