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

Microsoft Excel
Honeywell International Inc. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Lockheed Martin Corp. RTX Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $215.99
No. shares of common stock outstanding 649,671,200
Growth rate (g) 16.00%
 
Earnings per share (EPS) $8.71
Next year expected EPS $10.10
Operating profit per share $10.90
Sales per share $56.43
Book value per share (BVPS) $24.41
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 24.80 18.86 42.23 22.56 20.81 51.60 29.77 28.77
Price to next year expected earnings 21.38 15.40 39.64 22.20 13.18 50.56 29.71 29.11
Price-earnings-growth (PEG) 1.55 0.84 6.46 13.73 0.36 25.13 152.18
Price to operating profit (P/OP) 19.81 15.03 34.98 37.81 16.93 46.30 26.54 24.47
Price to sales (P/S) 3.83 1.20 3.05 5.86 3.21 2.13 2.39 2.68 2.46
Price to book value (P/BV) 8.85 10.00 7.14 7.57 21.07 2.76 8.24 7.92

Based on: 10-K (reporting date: 2023-12-31).

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 22.73 26.97 23.14 29.63 20.97
Price to operating profit (P/OP) 18.15 20.84 20.68 24.86 18.81
Price to sales (P/S) 3.51 3.78 3.73 4.34 3.51
Price to book value (P/BV) 8.11 8.02 6.91 8.07 6.97

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 but then decreased significantly from 2022 to 2023.
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 2021 to 2022 but then decreased significantly from 2022 to 2023.
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 2021 to 2022 but then decreased significantly from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 652,181,812 668,140,252 685,818,771 695,501,159 712,599,803
Selected Financial Data (US$)
Net income attributable to Honeywell (in millions) 5,658 4,966 5,542 4,779 6,143
Earnings per share (EPS)2 8.68 7.43 8.08 6.87 8.62
Share price1, 3 197.17 200.47 186.99 203.57 180.81
Valuation Ratio
P/E ratio4 22.73 26.97 23.14 29.63 20.97
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 15.55 19.15 16.82 36.80 12.36
Eaton Corp. plc 35.88 27.93 27.77 37.46 18.06
GE Aerospace 16.18 19.67
Lockheed Martin Corp. 15.35 20.48 16.70 13.44 19.87
RTX Corp. 38.31 27.59 36.79 24.41
P/E Ratio, Sector
Capital Goods 25.10 40.21 57.31 123.55 39.03
P/E Ratio, Industry
Industrials 25.76 36.38 33.32 161.96 49.05

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income attributable to Honeywell ÷ No. shares of common stock outstanding
= 5,658,000,000 ÷ 652,181,812 = 8.68

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 197.17 ÷ 8.68 = 22.73

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 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 652,181,812 668,140,252 685,818,771 695,501,159 712,599,803
Selected Financial Data (US$)
Operating income (in millions) 7,084 6,427 6,200 5,696 6,851
Operating profit per share2 10.86 9.62 9.04 8.19 9.61
Share price1, 3 197.17 200.47 186.99 203.57 180.81
Valuation Ratio
P/OP ratio4 18.15 20.84 20.68 24.86 18.81
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 12.40 16.25 15.87 24.23 9.08
Eaton Corp. plc 29.72 22.78 19.33 25.83 13.95
GE Aerospace 27.11 19.88 17.46 25.64 9.22
Lockheed Martin Corp. 12.49 14.06 11.56 10.63 14.49
RTX Corp. 34.37 26.48 28.68 15.07
P/OP Ratio, Sector
Capital Goods 22.37 25.20 22.96 70.31 17.55
P/OP Ratio, Industry
Industrials 21.90 20.37 21.72 48.99 19.39

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 7,084,000,000 ÷ 652,181,812 = 10.86

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 197.17 ÷ 10.86 = 18.15

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 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Sales (P/S)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 652,181,812 668,140,252 685,818,771 695,501,159 712,599,803
Selected Financial Data (US$)
Net sales (in millions) 36,662 35,466 34,392 32,637 36,709
Sales per share2 56.21 53.08 50.15 46.93 51.51
Share price1, 3 197.17 200.47 186.99 203.57 180.81
Valuation Ratio
P/S ratio4 3.51 3.78 3.73 4.34 3.51
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.66 1.90 1.87 1.96 2.34
Caterpillar Inc. 2.52 2.27 2.26 2.83 1.48
Eaton Corp. plc 4.98 3.31 3.03 2.96 1.87
GE Aerospace 2.30 1.20 1.50 1.41 1.18
Lockheed Martin Corp. 1.57 1.78 1.57 1.40 2.07
RTX Corp. 1.78 2.14 2.21 1.95 1.75
P/S Ratio, Sector
Capital Goods 2.26 2.09 2.09 2.11 1.92
P/S Ratio, Industry
Industrials 2.21 1.90 2.13 2.17 1.88

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 36,662,000,000 ÷ 652,181,812 = 56.21

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 197.17 ÷ 56.21 = 3.51

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 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Book Value (P/BV)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 652,181,812 668,140,252 685,818,771 695,501,159 712,599,803
Selected Financial Data (US$)
Total Honeywell shareowners’ equity (in millions) 15,856 16,697 18,569 17,549 18,494
Book value per share (BVPS)2 24.31 24.99 27.08 25.23 25.95
Share price1, 3 197.17 200.47 186.99 203.57 180.81
Valuation Ratio
P/BV ratio4 8.11 8.02 6.91 8.07 6.97
Benchmarks
P/BV Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 8.25 8.09 6.62 7.20 5.16
Eaton Corp. plc 6.07 4.04 3.63 3.54 2.48
GE Aerospace 5.43 2.43 2.64 2.89 3.66
Lockheed Martin Corp. 15.54 12.67 9.62 15.27 39.60
RTX Corp. 2.05 1.97 1.95 1.53 3.24
P/BV Ratio, Sector
Capital Goods 6.94 5.31 4.77 5.05 6.91
P/BV Ratio, Industry
Industrials 7.09 5.60 5.49 5.98 6.61

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Total Honeywell shareowners’ equity ÷ No. shares of common stock outstanding
= 15,856,000,000 ÷ 652,181,812 = 24.31

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 197.17 ÷ 24.31 = 8.11

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 2021 to 2022 and from 2022 to 2023.