Price to FCFE (P/FCFE)
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Honeywell International Inc. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
Honeywell International Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Analysis of the presented financial information reveals significant fluctuations in free cash flow to equity (FCFE) over the five-year period. Net cash provided by operating activities demonstrates a generally stable pattern, while FCFE exhibits considerable volatility.
- Net Cash from Operations
- Net cash provided by operating activities decreased from US$6,038 million in 2021 to US$5,274 million in 2022, representing a decline of approximately 14.5%. A modest recovery was observed in 2023, with cash from operations reaching US$5,340 million. Further improvement occurred in 2024, increasing to US$6,097 million, and remained relatively consistent in 2025 at US$6,075 million. This indicates a return to levels comparable to those seen in 2021.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a substantial increase from US$2,774 million in 2021 to US$4,854 million in 2022, a growth of approximately 74.7%. This positive trend continued into 2023, with FCFE reaching US$4,927 million. However, 2024 witnessed an exceptional surge, with FCFE escalating to US$15,789 million, representing a more than threefold increase from the prior year. A significant decrease in FCFE was then observed in 2025, falling to US$7,728 million, although still remaining above the levels recorded in 2021 and 2022.
The divergence between the relatively stable operating cash flow and the highly variable FCFE suggests that factors beyond core operating performance are significantly influencing the cash available to equity holders. These factors could include changes in capital expenditures, debt financing, share repurchases, or dividend payments, none of which are directly presented in this information. The substantial increase in FCFE in 2024, followed by a considerable decline in 2025, warrants further investigation to understand the underlying drivers of these fluctuations.
Overall, while operating cash flow demonstrates a degree of consistency, the FCFE profile is characterized by substantial swings, indicating a complex cash flow dynamic that requires deeper scrutiny.
Price to FCFE Ratio, Current
Honeywell International Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Honeywell International Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/FCFE, Sector | ||||||
| Capital Goods | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Honeywell International Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits significant fluctuations over the observed period. Initial values demonstrate a substantial decrease followed by an increase, then a subsequent decline and final rise. A detailed examination of the components and the resulting ratio reveals key trends.
- Share Price
- The share price generally increased from 2021 to 2025, experiencing growth from US$186.99 to US$242.65. However, there was a slight decrease between 2021 and 2022, followed by a more pronounced dip between 2022 and 2023 before resuming an upward trajectory.
- Free Cash Flow to Equity per Share
- FCFE per share showed a marked increase from US$4.04 in 2021 to US$7.26 in 2022, and a further increase to US$7.55 in 2023. A substantial surge occurred in 2024, reaching US$24.29, before declining to US$12.16 in 2025. This indicates considerable volatility in the cash flow available to equity holders.
- Price to FCFE Ratio
- The P/FCFE ratio began at 46.23 in 2021, indicating a relatively high valuation compared to FCFE. A significant decrease was observed in 2022, falling to 27.59, and continued to 26.10 in 2023. The ratio then experienced a dramatic decline in 2024 to 8.35, likely driven by the substantial increase in FCFE per share. Finally, the P/FCFE ratio increased to 19.96 in 2025, coinciding with the decrease in FCFE per share and the increase in share price.
The substantial decrease in the P/FCFE ratio in 2024 suggests that the equity became significantly undervalued relative to the free cash flow generated, or conversely, that the market anticipated a decline in future FCFE. The subsequent increase in 2025, while still lower than the initial values, indicates a partial correction in valuation. The volatility in FCFE per share is a key driver of the fluctuations observed in the P/FCFE ratio, highlighting the importance of understanding the underlying factors influencing cash flow generation.