Honeywell International Inc.
Find Ratings ReportsHONEYWELL INTERNATIONAL INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. HONEYWELL INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.03% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 9440.0 | 9186.0 |
EBITDA ($mil) | 1884.0 | 2327.0 |
EBIT ($mil) | 1583.0 | 2028.0 |
Net Income ($mil) | 1263.0 | 1019.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 8095.0 | 10110.0 |
Total Assets ($mil) | 61525.0 | 62275.0 |
Total Debt ($mil) | 21536.0 | 20537.0 |
Equity ($mil) | 15856.0 | 16697.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 37.5 | 42.01 |
EBITDA Margin | 19.95 | 25.33 |
Operating Margin | 16.77 | 22.08 |
Sales Turnover | 0.6 | 0.57 |
Return on Assets | 9.19 | 7.97 |
Return on Equity | 35.68 | 29.74 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.27 | 1.25 |
Debt/Capital | 0.58 | 0.55 |
Interest Expense | 202.0 | 144.0 |
Interest Coverage | 7.84 | 14.08 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 651.8 | 667.6 |
Div / share | 1.08 | 1.03 |
EPS | 1.91 | 1.51 |
Book value / share | 24.33 | 25.01 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3004737.0 | 2813172.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 23.30 for the Transportation Equipment Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 8.07 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 4.90. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. The valuation analysis reveals that, HONEYWELL INTERNATIONAL INC seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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HON 23.18 | Peers 23.30 | HON 23.97 | Peers 20.65 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. HON is trading at a valuation on par with its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HON is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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HON 17.93 | Peers 16.58 | HON 1.33 | Peers 2.67 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. HON is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HON trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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HON 8.07 | Peers 4.90 | HON 16.50 | Peers 54.33 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HON is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, HON is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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HON 3.49 | Peers 3.84 | HON 3.37 | Peers 19.37 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HON is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. HON significantly trails its peers on the basis of sales growth. |
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