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Honeywell International Inc. Message Board

  • c79txag c79txag Oct 26, 2005 8:54 AM Flag

    Stock Price

    HON is at almost 21x earnings even with the recent price decline. GE is approximately 19x and UTX 17x. Any reason why HON is at a higher multiplier? To me it is still a pricey stock.

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    • That is the trailing PE,The forward is around 13-14 I think.

      problem is, HON is good at promising and bad at delivering. Return on assets was in the 4% range for the last 3 years.

      I would rate HON a "hold" below 38 and a buy at 28 or so.

      • 2 Replies to ex_hon_sw_engineer
      • MORRIS TOWNSHIP, N.J.--(BUSINESS WIRE)--Oct. 28, 2005--The Board of Directors of Honeywell (NYSE: HON) has declared a regular quarterly dividend of $0.20625 per share on the company's outstanding common stock. The dividend is payable on December 9, 2005 to shareowners of record at the close of business on November 18, 2005.
        Honeywell International is a $26 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit

      • Thanks everyone for your insights based on data; a breathe of fresh air in the Internet world

    • HON's PE ratio of 21 times, is trailing earnings.
      A clearer picture of the reason the stock is priced as it is can be seen when looking at their foward PE ratios,

      * Forward PE ********* Trailing PE ******

      HON = 13.71--------------------21
      GE = 16.46---------------------19.04
      UTX = 14.68--------------------16.38


      Then it really gets messy when you compare
      Growth Rates, Book Values, Cash on hand per share, Dividend Yield. ( and so on )

      All of this should be considered, but when you don't have a MBA in accounting ( such as me ) you are stuck with smidgeon of knowledge, and a pickup truck full of hope!

      GOOD LUCK.

    • HON's earnings for the past 12 months are net of a large earnings repatriation charge and a couple of other "one time" charges. When you factor some of these charges back into to income, the PE ratio would be quite a bit lower. The other big factors are: what are the PE rations for the forward 12 months, what are the dividends and what is the cash flow.

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