Honeywell International Inc

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HON : NYSE : Industrial Goods
$131.86 up 0.02 | 0.015%
Today's Range: 131.35 - 132.38
Avg. Daily Volume: 2887300.0
05/23/17 - 3:59 PM ET

Financial Analysis


HONEYWELL INTERNATIONAL INC's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. HONEYWELL INTERNATIONAL INC has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.68% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)9492.09522.0
EBITDA ($mil)2137.02020.0
EBIT ($mil)1866.01767.0
Net Income ($mil)1326.01216.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)9595.04473.0
Total Assets ($mil)54779.050365.0
Total Debt ($mil)15867.013957.0
Equity ($mil)20323.018197.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin36.834.45
EBITDA Margin22.5121.21
Operating Margin19.6618.56
Sales Turnover0.720.77
Return on Assets8.979.66
Return on Equity24.226.75
Debt Q1 FY17 Q1 FY16
Current Ratio1.361.25
Debt/Capital0.440.43
Interest Expense80.092.0
Interest Coverage23.3319.21


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)762.34762.12
Div / share0.670.6
EPS1.711.56
Book value / share26.6623.88
Institutional Own % n/a n/a
Avg Daily Volume2881210.03286039.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.82 for the Industrial Conglomerates industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 4.89 indicates a significant premium versus the S&P 500 average of 3.00 and a discount versus the industry average of 5.13. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HON 20.51 Peers 24.82   HON 16.06 Peers 17.00

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

HON is trading at a 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HON 16.87 Peers 18.85   HON 1.41 Peers 1.07

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

HON is trading at a valuation on par with 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HON 4.89 Peers 5.13   HON 2.58 Peers 42.41

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HON 2.53 Peers 2.59   HON 0.98 Peers 2.15

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 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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