Stock Analysis on Net
Stock Analysis on Net

Honeywell International Inc. (NYSE:HON)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Honeywell International Inc., FCFE calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Net income attributable to the noncontrolling interest 87  63  43  37  79 
Net noncash charges 623  (680) 4,831  836  770 
Changes in assets and liabilities, net of the effects of acquisitions and divestitures 44  286  (563) (184) (163)
Net cash provided by operating activities 6,897  6,434  5,966  5,498  5,454 
Expenditures for property, plant and equipment (839) (828) (1,031) (1,095) (1,073)
Proceeds from disposals of property, plant and equipment 43  15  86  21  15 
Proceeds from issuance of commercial paper and other short-term borrowings 14,199  23,891  13,701  18,997  12,992 
Payments of commercial paper and other short-term borrowings (14,199) (24,095) (13,532) (21,461) (8,727)
Proceeds from issuance of long-term debt 2,726  27  1,238  9,245  60 
Payments of long-term debt (2,903) (1,330) (292) (2,839) (880)
Free cash flow to equity (FCFE) 5,924  4,114  6,136  8,366  7,841 

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Honeywell International Inc.’s 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.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

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

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 701,685,768
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 5,924 
FCFE per share 8.44
Current share price (P) 205.97
Valuation Ratio
P/FCFE 24.40
Benchmarks
P/FCFE, Competitors1
3M Co. 11.08
General Electric Co.
P/FCFE, Sector
General Industrials 39.99
P/FCFE, Industry
Industrials 22.49

Based on: 10-K (filing date: 2020-02-14).

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 LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 712,599,803 729,085,890 752,002,033 761,194,241 769,322,910
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 5,924  4,114  6,136  8,366  7,841 
FCFE per share3 8.31 5.64 8.16 10.99 10.19
Share price1, 4 180.81 148.61 147.90 121.85 103.48
Valuation Ratio
P/FCFE5 21.75 26.34 18.13 11.09 10.15
Benchmarks
P/FCFE, Competitors6
3M Co. 10.88 19.86 20.51 16.90 10.80
General Electric Co. 469.44
P/FCFE, Sector
General Industrials 38.46 28.72
P/FCFE, Industry
Industrials 21.59 23.69 18.58 79.56 42.82

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,924,000,000 ÷ 712,599,803 = 8.31

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

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 180.81 ÷ 8.31 = 21.75

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.’s P/FCFE ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.