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Should Honeywell International Inc. (NYSE:HON) Be Your Next Stock Pick?

Simply Wall St

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Honeywell International Inc. (NYSE:HON) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of HON, it is a financially-healthy , dividend-paying company with a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Honeywell International here.

Established dividend payer with proven track record

HON delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 36%, which is what investors like to see! HON's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that HON manages its cash and cost levels well, which is an important determinant of the company’s health. HON appears to have made good use of debt, producing operating cash levels of 0.4x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:HON Income Statement, July 12th 2019

Income investors would also be happy to know that HON is a great dividend company, with a current yield standing at 1.9%. HON has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:HON Historical Dividend Yield, July 12th 2019

Next Steps:

For Honeywell International, there are three essential factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for HON’s future growth? Take a look at our free research report of analyst consensus for HON’s outlook.
  2. Valuation: What is HON worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HON is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HON? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.