NEW YORK ( TheStreet) -- Honeywell International (NYSE: HON) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- HON's revenue growth has slightly outpaced the industry average of 2.8%. 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 company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Aerospace & Defense industry average. 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 67.66%.
- 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 ($4.45 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.
-- Written by a member of TheStreet RatingsStaff