Honeywell International Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to Honeywell	5,705)	5,658)	4,966)	5,542)	4,779)
Net income attributable to the noncontrolling interest	35)	14)	1)	68)	86)
Net noncash charges	120)	(693)	1,052)	140)	(20)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures	237)	361)	(745)	288)	1,363)
Net cash provided by operating activities	6,097)	5,340)	5,274)	6,038)	6,208)
Capital expenditures	(1,164)	(1,039)	(766)	(895)	(906)
Proceeds from disposals of property, plant and equipment	—)	43)	29)	27)	57)
Proceeds from issuance of commercial paper and other short-term borrowings	13,838)	12,991)	7,661)	5,194)	10,474)
Payments of commercial paper and other short-term borrowings	(11,578)	(13,663)	(8,447)	(5,190)	(10,400)
Proceeds from issuance of long-term debt	10,408)	2,986)	2,953)	2,517)	10,125)
Payments of long-term debt	(1,812)	(1,731)	(1,850)	(4,917)	(4,308)
Free cash flow to equity (FCFE)	15,789)	4,927)	4,854)	2,774)	11,250)

Based on: 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), 10-K (reporting date: 2020-12-31).

Net cash provided by operating activities: The net cash provided by operating activities showed a fluctuating trend over the five-year period. Starting at $6,208 million in 2020, it slightly decreased to $6,038 million in 2021. This was followed by a more notable decline to $5,274 million in 2022. The figure then stabilized with a marginal increase to $5,340 million in 2023, before rising again to $6,097 million in 2024. Overall, despite the fluctuations, the net cash provided by operating activities ended somewhat close to the initial value, indicating resilient operational cash generation.
Free cash flow to equity (FCFE): The free cash flow to equity exhibited significant volatility throughout the period. It started at a high point of $11,250 million in 2020 but dropped sharply to $2,774 million in 2021. After this decline, FCFE showed a recovery trend, increasing to $4,854 million in 2022 and $4,927 million in 2023. Notably, there was a substantial increase in 2024, reaching $15,789 million, the highest value recorded in the period. This considerable surge in the last year suggests improved cash available to equity holders, potentially reflecting changes in capital expenditures, debt financing, or other financing activities.
Overall Analysis: While operating cash flows remained relatively stable with minor fluctuations, the free cash flow to equity demonstrated more pronounced variability. The considerable drop in FCFE after 2020 and the subsequent recovery culminating in a strong increase in 2024 indicate changing dynamics in cash distribution or investment strategy. These patterns could reflect shifts in capital investment, debt repayments, or other financing decisions impacting the cash available to shareholders. The divergence between operating cash flows and FCFE in certain years deserves closer examination to understand underlying causes.

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

No. shares of common stock outstanding	642,682,909
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	15,789)
FCFE per share	24.57
Current share price (P)	240.40
Valuation Ratio
P/FCFE	9.79
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	18.12
Eaton Corp. plc	38.67
GE Aerospace	64.01
Lockheed Martin Corp.	13.40
RTX Corp.	95.92
P/FCFE, Sector
Capital Goods	38.91
P/FCFE, Industry
Industrials	34.10

Based on: 10-K (reporting date: 2024-12-31).

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.

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

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
No. shares of common stock outstanding¹	649,918,551	652,181,812	668,140,252	685,818,771	695,501,159
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	15,789)	4,927)	4,854)	2,774)	11,250)
FCFE per share³	24.29	7.55	7.26	4.04	16.18
Share price^1, 4	202.75	197.17	200.47	186.99	203.57
Valuation Ratio
P/FCFE⁵	8.35	26.10	27.59	46.23	12.59
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	—	120.43	—	6.78
Caterpillar Inc.	16.33	14.39	24.03	16.36	25.22
Eaton Corp. plc	31.06	33.65	28.68	24.43	25.59
GE Aerospace	53.26	225.15	44.45	—	—
Lockheed Martin Corp.	13.31	13.13	11.63	14.65	15.57
RTX Corp.	85.26	7.05	26.71	35.07	—
P/FCFE, Sector
Capital Goods	33.57	20.26	25.94	—	74.91
P/FCFE, Industry
Industrials	30.92	23.85	25.07	—	40.69

Based on: 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), 10-K (reporting date: 2020-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 15,789,000,000 ÷ 649,918,551 = 24.29

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

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 202.75 ÷ 24.29 = 8.35

⁶ Click competitor name to see calculations.

Share price trend: The share price exhibited moderate fluctuations over the five-year period. Starting at $203.57 in 2020, it declined to $186.99 in 2021, followed by a partial recovery to $200.47 in 2022. Subsequently, it slightly decreased to $197.17 in 2023 and rose again to $202.75 in 2024. Overall, the share price remained relatively stable around the $200 mark with minor variations year to year.
FCFE per share trend: Free Cash Flow to Equity (FCFE) per share showed significant variability. It began at $16.18 in 2020 before sharply dropping to $4.04 in 2021. In 2022 and 2023, FCFE per share gradually increased to $7.26 and $7.55 respectively. A notable surge occurred in 2024, with FCFE per share reaching $24.29, representing the highest value in the period analyzed and signaling a substantial improvement in cash flow available to equity shareholders.
P/FCFE ratio trend: The Price to Free Cash Flow to Equity (P/FCFE) ratio fluctuated inversely to FCFE per share. Initially at a low 12.59 in 2020, the ratio escalated sharply to 46.23 in 2021, reflecting the decline in FCFE per share relative to share price. The ratio then progressively decreased to 27.59 in 2022, 26.10 in 2023, and significantly dropped further to 8.35 in 2024. The decline in the P/FCFE ratio in the final year underscores a more attractive valuation in terms of free cash flow, likely driven by the marked increase in FCFE per share.
Summary of insights: Throughout the examined timeframe, the company maintained a relatively stable share price despite considerable fluctuations in free cash flow to equity. The sharp reduction in FCFE per share in 2021 and subsequent gradual recovery suggest possible operational or capital allocation challenges early in this period. The sharp increase in 2024's FCFE per share, coupled with a lowered valuation ratio, implies enhanced efficiency or profitability translating into greater cash flow for shareholders. This improvement may indicate positive developments in the company’s financial health and its capacity to generate equity cash flow without a parallel rise in share price valuation.

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Honeywell International Inc. (NASDAQ:HON)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical