Honeywell International IncFind Ratings Reports
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 ($mil)||9804.0||9611.0|
|Net Income ($mil)||1240.0||1264.0|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||6431.0||6563.0|
|Total Assets ($mil)||53556.0||46625.0|
|Total Debt ($mil)||15858.0||10567.0|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||34.55||34.39|
|Return on Assets||9.27||9.71|
|Return on Equity||25.89||25.5|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||762.13||770.69|
|Div / share||0.6||0.52|
|Book value / share||25.18||23.04|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3278515.0||2733055.0|
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.
|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.
|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.
|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.
|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