Fact based stock research
Honeywell (NYSE:HON)

US4385161066

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Honeywell stock research in summary

honeywell.com

ANALYSIS: With an Obermatt Combined Rank of 43 (worse than 57% compared with investment alternatives), Honeywell (Industrial Conglomerates, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Honeywell are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives), show above-average growth (Growth Rank of 53) but are riskily financed (Safety Rank of 28), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 43, is a hold recommendation based on Honeywell's financial characteristics. As the company Honeywell's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 57) and above-average growth (Obermatt Growth Rank of 53), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 28) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	57
Growth Rank	53
Safety Rank	28
Combined Rank	43

Country	USA
Industry	Industrial Conglomerates
Index	Dow Jones, Dividends USA, Human Rights, Water Tech, D.J. US Defense, S&P 500
Size class	XX-Large

This stock has achievements: Top 10 Stock.

28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Honeywell

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	25	23	30	57
GROWTH
GROWTH	74	37	33	53
SAFETY
SAFETY	56	88	21	28
SENTIMENT
SENTIMENT	n/a	40	78	^new
360° VIEW
360° VIEW	n/a	40	26	^new

Most recent update of the stock research: 28-Nov-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Honeywell is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	25	23	30	57
GROWTH
GROWTH	74	37	33	53
SAFETY
SAFETY	56	88	21	28
COMBINED
COMBINED	44	49	4	43

Last update of combined financial performance: 28-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Honeywell the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), Honeywell shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Honeywell. Price-to-Profit (also referred to as price-earnings, P/E) is 52 which means that the stock price compared with what market professionals expect for future profits is lower than for 52% of comparable companies, indicating a good value concerning Honeywell's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 18, which means that the stock price is lower as regards to invested capital than for 18% of comparable investments. On the other hand, Price-to-Sales is less favorable than 65% of alternatives (only 35% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 10% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 57, is a buy recommendation based on Honeywell's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	3	25	20	35
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	49	25	34	52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	6	8	10	18
DIVIDEND YIELD
DIVIDEND YIELD	80	85	88	90
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	25	23	30	57

Last update of Value Rank: 28-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Honeywell; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Honeywell shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Honeywell. Sales Growth has a rank of 76, which means that, currently, professionals expect the company to grow more than 76% of its competitors. Profit Growth with a rank of 65 is also above average. But Capital Growth has only a rank of 29, and Stock Returns with 36 are also below-average. Stock returns for Honeywell have recently been below 64% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Honeywell. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	58	42	56	76
PROFIT GROWTH
PROFIT GROWTH	38	29	47	65
CAPITAL GROWTH
CAPITAL GROWTH	n/a	79	43	29
STOCK RETURNS
STOCK RETURNS	40	33	29	36
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	74	37	33	53

Last update of Growth Rank: 28-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Honeywell.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company Honeywell has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Honeywell is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Honeywell. Liquidity is at 66, meaning the company generates more profit to service its debt than 66% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 36, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 64% of its competitors. Leverage is also high at a rank of 17, which means that the company has an above-average debt-to-equity ratio. It has more debt than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), Honeywell has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	65	18	15	17
REFINANCING
REFINANCING	27	100	18	36
LIQUIDITY
LIQUIDITY	68	84	80	66
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	56	88	21	28

Last update of Safety Rank: 28-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Honeywell and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	27	47	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	53	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	32	64	^new
MARKET PULSE
MARKET PULSE	n/a	78	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	40	78	^new

Last update of Sentiment Rank: 28-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Honeywell.
Upgrade to a Premium Account to access the latest ranks.