Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Honeywell International Inc., current price multiples

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Honeywell International Inc. 3M Co. Boeing Co. Caterpillar Inc. General Electric Co. Lockheed Martin Corp. Raytheon Technologies Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $220.05
No. shares of common stock outstanding 672,322,232
Growth rate (g) 13.17%
 
Earnings per share (EPS) $8.24
Next year expected EPS $9.33
Operating profit per share $9.22
Sales per share $51.15
Book value per share (BVPS) $27.62
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 26.70 12.05 18.90 20.06 37.08 47.43 28.12
Price to next year expected earnings 23.59 10.29 16.27 11.75 35.36 48.25 27.56
Price-earnings-growth (PEG) 2.03 0.71 1.17 0.28 7.63 13.83
Price to operating profit (P/OP) 23.86 9.68 17.83 15.80 13.89 28.90 21.59 17.45
Price to sales (P/S) 4.30 2.02 1.71 2.55 1.35 1.89 2.23 2.13 1.95
Price to book value (P/BV) 7.97 4.74 7.44 2.39 11.56 1.96 5.11 5.62

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Honeywell International Inc., historical price multiples

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 23.14 29.63 20.97 16.02 67.20
Price to operating profit (P/OP) 20.68 24.86 18.81 16.16 15.55
Price to sales (P/S) 3.73 4.34 3.51 2.59 2.74
Price to book value (P/BV) 6.91 8.07 6.97 5.96 6.44

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Honeywell International Inc. P/E ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Honeywell International Inc. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Honeywell International Inc. P/S ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Honeywell International Inc. P/BV ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Earnings (P/E)

Honeywell International Inc., historical P/E calculation, comparison to benchmarks

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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$)
Net income attributable to Honeywell (in millions) 5,542 4,779 6,143 6,765 1,655
Earnings per share (EPS)2 8.08 6.87 8.62 9.28 2.20
Share price1, 3 186.99 203.57 180.81 148.61 147.90
Valuation Ratio
P/E ratio4 23.14 29.63 20.97 16.02 67.20
Benchmarks
P/E Ratio, Competitors5
3M Co. 15.78 19.05 20.52 21.51 27.32
Boeing Co. 21.87 24.68
Caterpillar Inc. 16.82 36.80 12.36 12.42 126.80
General Electric Co. 19.67
Lockheed Martin Corp. 16.70 13.44 19.87 16.88 48.70
Raytheon Technologies Corp. 36.79 24.41 19.74 21.97
P/E Ratio, Sector
Capital Goods 46.68 78.67 37.33 49.93 54.77
P/E Ratio, Industry
Industrials 29.93 100.27 30.61 31.87 28.33

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 2021 Calculation
EPS = Net income attributable to Honeywell ÷ No. shares of common stock outstanding
= 5,542,000,000 ÷ 685,818,771 = 8.08

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 186.99 ÷ 8.08 = 23.14

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Honeywell International Inc. P/E ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Operating Profit (P/OP)

Honeywell International Inc., historical P/OP 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$)
Operating income (in millions) 6,200 5,696 6,851 6,705 7,151
Operating profit per share2 9.04 8.19 9.61 9.20 9.51
Share price1, 3 186.99 203.57 180.81 148.61 147.90
Valuation Ratio
P/OP ratio4 20.68 24.86 18.81 16.16 15.55
Benchmarks
P/OP Ratio, Competitors5
3M Co. 12.68 14.32 15.19 15.97 16.97
Boeing Co. 19.08 19.69
Caterpillar Inc. 15.87 24.23 9.08 9.20 21.70
General Electric Co. 17.46 25.64 9.22 8.57 12.27
Lockheed Martin Corp. 11.56 10.63 14.49 11.62 16.47
Raytheon Technologies Corp. 28.68 15.07 12.16 11.53
P/OP Ratio, Sector
Capital Goods 21.25 50.19 17.46 13.31 15.87
P/OP Ratio, Industry
Industrials 18.58 42.96 15.28 13.02 14.29

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 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,200,000,000 ÷ 685,818,771 = 9.04

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 186.99 ÷ 9.04 = 20.68

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Honeywell International Inc. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Sales (P/S)

Honeywell International Inc., historical P/S 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$)
Net sales (in millions) 34,392 32,637 36,709 41,802 40,534
Sales per share2 50.15 46.93 51.51 57.33 53.90
Share price1, 3 186.99 203.57 180.81 148.61 147.90
Valuation Ratio
P/S ratio4 3.73 4.34 3.51 2.59 2.74
Benchmarks
P/S Ratio, Competitors5
3M Co. 2.64 3.19 2.92 3.51 4.19
Boeing Co. 1.87 1.96 2.34 2.26 2.17
Caterpillar Inc. 2.26 2.83 1.48 1.47 2.24
General Electric Co. 1.50 1.41 1.18 0.82 1.11
Lockheed Martin Corp. 1.57 1.40 2.07 1.58 1.91
Raytheon Technologies Corp. 2.21 1.95 1.75 1.56 1.67
P/S Ratio, Sector
Capital Goods 2.09 2.17 2.00 1.76 2.00
P/S Ratio, Industry
Industrials 2.08 2.10 1.83 1.71 1.87

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 2021 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 34,392,000,000 ÷ 685,818,771 = 50.15

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 186.99 ÷ 50.15 = 3.73

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Honeywell International Inc. P/S ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Book Value (P/BV)

Honeywell International Inc., historical P/BV 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$)
Total Honeywell shareowners’ equity (in millions) 18,569 17,549 18,494 18,180 17,276
Book value per share (BVPS)2 27.08 25.23 25.95 24.94 22.97
Share price1, 3 186.99 203.57 180.81 148.61 147.90
Valuation Ratio
P/BV ratio4 6.91 8.07 6.97 5.96 6.44
Benchmarks
P/BV Ratio, Competitors5
3M Co. 6.21 7.97 9.32 11.75 11.48
Boeing Co. 674.83 569.92
Caterpillar Inc. 6.62 7.20 5.16 5.44 6.98
General Electric Co. 2.64 2.89 3.66 3.00 1.96
Lockheed Martin Corp. 9.62 15.27 39.60 61.11
Raytheon Technologies Corp. 1.95 1.53 3.24 2.71 3.38
P/BV Ratio, Sector
Capital Goods 5.03 5.48 7.79 7.16 6.36
P/BV Ratio, Industry
Industrials 5.98 6.39 7.41 6.87 6.02

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 2021 Calculation
BVPS = Total Honeywell shareowners’ equity ÷ No. shares of common stock outstanding
= 18,569,000,000 ÷ 685,818,771 = 27.08

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 186.99 ÷ 27.08 = 6.91

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Honeywell International Inc. P/BV ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.