Honeywell International Inc. Stock Buy Recommendation Reiterated (HON)

NEW YORK (TheStreet) -- Honeywell International (NYSE:HON) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from the ratings report include:

• HON's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 16.7% when compared to the same quarter one year prior, going from $705.00 million to $823.00 million.
• Net operating cash flow has significantly increased by 144.24% to $196.00 million when compared to the same quarter last year. In addition, HONEYWELL INTERNATIONAL INC has also vastly surpassed the industry average cash flow growth rate of 58.86%.
• HONEYWELL INTERNATIONAL INC has improved earnings per share by 20.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HONEYWELL INTERNATIONAL INC reported lower earnings of $2.33 versus $2.50 in the prior year. This year, the market expects an improvement in earnings ($4.53 versus $2.33).
• The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The company has a P/E ratio of 22.3, above the average aerospace/defense industry P/E ratio of 20.3and above the S&P 500 P/E ratio of 17.7. Honeywell International has a market cap of $44.05 billion and is part of the industrial goods sector and aerospace/defense industry. Shares are up 4% year to date as of the close of trading on Thursday.

You can view the full Honeywell International Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

For more information on Honeywell International Inc. click any of the following:

• Honeywell International Inc. Stock Price

• Honeywell International Inc. Analyst Ratings

• Honeywell International Inc. Key Stats & Profile

• Honeywell International Inc. Earnings

• Honeywell International Inc. Ratio Comparison

• Honeywell International Inc. Growth Rates

• Honeywell International Inc. Balance Sheet

• Honeywell International Inc. Cash Flow

• Honeywell International Inc. Income Statement