Editor's Note: 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.
NEW YORK (
) 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 increase in net income, revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 10.2% when compared to the same quarter one year prior, going from $862.00 million to $950.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 0.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 51.13% to $999.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 37.17%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- HONEYWELL INTERNATIONAL INC has improved earnings per share by 37.9% 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 ($4.48 versus $2.33).
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Honeywell International has a market cap of $47.46 billion and is part of the industrial goods sector and aerospace/defense industry. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 11.5% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
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