Honeywell International, Inc. (HON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Honeywell International, Inc.

TransDigm Group, Inc.

Why is Honeywell International, Inc. ?

High Management Efficiency with a high ROCE of 23.86%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 3.65 times

Poor long term growth as Net Sales has grown by an annual rate of 4.33% and Operating profit at 5.06% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 5,161 MM
NET PROFIT(9M) At USD 3,212.83 MM has Grown at -26.87%
ROCE(HY) Lowest at 29.16%

With ROCE of 22.36%, it has a fair valuation with a 6.27 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.55%, its profits have fallen by -13.7%

High Institutional Holdings at 80.44%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 9.55% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Honeywell International, Inc. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Honeywell International, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Honeywell International, Inc.

9.55%

0.53

25.55%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.33%

EBIT Growth (5y)

5.06%

EBIT to Interest (avg)

13.62

Debt to EBITDA (avg)

1.54

Net Debt to Equity (avg)

1.31

Sales to Capital Employed (avg)

0.83

Tax Ratio

20.68%

Dividend Payout Ratio

62.25%

Pledged Shares

Institutional Holding

80.44%

ROCE (avg)

23.86%

ROE (avg)

35.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.52

EV to EBIT

28.03

EV to EBITDA

23.49

EV to Capital Employed

6.27

EV to Sales

5.55

PEG Ratio

Dividend Yield

1.53%

ROCE (Latest)

22.36%

ROE (Latest)

37.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.83

DIVIDEND PAYOUT RATIO(Y)

Highest at 92.53%

RAW MATERIAL COST(Y)

Fallen by -0.13% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.79 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.83 times

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 5,161 MM

NET PROFIT(9M)

At USD 3,212.83 MM has Grown at -26.87%

ROCE(HY)

Lowest at 29.16%

DEBT-EQUITY RATIO (HY)

Highest at 186.62 %

Here's what is working for Honeywell International, Inc.

Dividend per share

Highest at USD 4.83 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Inventory Turnover Ratio

Highest at 3.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.83 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 92.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Honeywell International, Inc.

Operating Cash Flow

Lowest at USD 5,161 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 186.62 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Profit

At USD 3,212.83 MM has Grown at -26.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)