Honeywell International Inc

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HON : NYSE : Industrial Goods
$109.26 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,297,700
10/24/16 - 4:02 PM ET

Financial Analysis

HONEYWELL INTERNATIONAL INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. HONEYWELL INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.05% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)9804.09611.0
EBITDA ($mil)2073.02107.0
EBIT ($mil)1813.01888.0
Net Income ($mil)1240.01264.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)6431.06563.0
Total Assets ($mil)53556.046625.0
Total Debt ($mil)15858.010567.0
Equity ($mil)19191.017760.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin34.5534.39
EBITDA Margin21.1421.92
Operating Margin18.4919.64
Sales Turnover0.730.83
Return on Assets9.279.71
Return on Equity25.8925.5
Debt Q3 FY16 Q3 FY15
Current Ratio1.21.43
Interest Expense87.077.0
Interest Coverage20.8424.52

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)762.13770.69
Div / share0.60.52
Book value / share25.1823.04
Institutional Own % n/a n/a
Avg Daily Volume3278515.02733055.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 29.84 for the Industrial Conglomerates industry and a discount compared to the S&P 500 average of 24.63. For additional comparison, its price-to-book ratio of 4.33 indicates a significant premium versus the S&P 500 average of 2.73 and a discount versus the industry average of 4.39. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, HONEYWELL INTERNATIONAL INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HON 17.00 Peers 29.84   HON 15.39 Peers 15.18

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HON is trading at a significant discount to its peers.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HON 15.35 Peers 19.33   HON 1.83 Peers 0.93

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HON is trading at a discount to its peers.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HON 4.33 Peers 4.39   HON 12.06 Peers 116.62

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HON is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HON 2.11 Peers 2.41   HON 1.11 Peers 1.61

Discount. 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 discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HON significantly trails its peers on the basis of sales growth



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