Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

Price to FCFE (P/FCFE) 

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Honeywell International Inc., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income attributable to Honeywell 5,542  4,779  6,143  6,765  1,655 
Net income attributable to the noncontrolling interest 68  86  87  63  43 
Net noncash charges 140  (20) 623  (680) 4,831 
Changes in assets and liabilities, net of the effects of acquisitions and divestitures 288  1,363  44  286  (563)
Net cash provided by operating activities 6,038  6,208  6,897  6,434  5,966 
Expenditures for property, plant and equipment (895) (906) (839) (828) (1,031)
Proceeds from disposals of property, plant and equipment 27  57  43  15  86 
Proceeds from issuance of commercial paper and other short-term borrowings 5,194  10,474  14,199  23,891  13,701 
Payments of commercial paper and other short-term borrowings (5,190) (10,400) (14,199) (24,095) (13,532)
Proceeds from issuance of long-term debt 2,517  10,125  2,726  27  1,238 
Payments of long-term debt (4,917) (4,308) (2,903) (1,330) (292)
Free cash flow to equity (FCFE) 2,774  11,250  5,924  4,114  6,136 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Honeywell International Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Honeywell International Inc. FCFE increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to FCFE Ratio, Current

Honeywell International Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 673,692,317
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 2,774 
FCFE per share 4.12
Current share price (P) 177.81
Valuation Ratio
P/FCFE 43.18
Benchmarks
P/FCFE, Competitors1
3M Co. 13.94
Boeing Co.
Caterpillar Inc. 14.11
General Electric Co.
Lockheed Martin Corp. 14.83
Raytheon Technologies Corp. 31.03

Based on: 10-K (reporting date: 2021-12-31).

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 685,818,771 695,501,159 712,599,803 729,085,890 752,002,033
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 2,774  11,250  5,924  4,114  6,136 
FCFE per share3 4.04 16.18 8.31 5.64 8.16
Share price1, 4 186.99 203.57 180.81 148.61 147.90
Valuation Ratio
P/FCFE5 46.23 12.59 21.75 26.34 18.13
Benchmarks
P/FCFE, Competitors6
3M Co. 19.86 21.65 10.88 19.86 20.51
Boeing Co. 6.78 19.60 15.23 15.94
Caterpillar Inc. 16.36 25.22 11.07 11.89 44.45
General Electric Co. 469.44
Lockheed Martin Corp. 14.65 15.57 28.62 49.82 18.40
Raytheon Technologies Corp. 35.07 28.09 6.94 14.93
P/FCFE, Sector
Capital Goods 62.71 25.02 30.27 21.79
P/FCFE, Industry
Industrials 39.21 22.79 23.99 22.60

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,774,000,000 ÷ 685,818,771 = 4.04

4 Closing price as at the filing date of Honeywell International Inc. Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 186.99 ÷ 4.04 = 46.23

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Honeywell International Inc. P/FCFE ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.