NYSE:HON
$38.10
(2/9 3:34PM)
+3.3%
| Open | $37.37 |
Mkt Cap | $28.1 Billion |
| High | $38.24 |
52Wk High | $43.21 |
| Low | $37.25 |
52Wk Low | $23.06 |
| Volume | 5.6 Million |
Avg Vol 10D | 7.0 Million |
Ockham's Rating/Recommendation Summary
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HON Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, HON the high and low end of the Price to Sales per share ratios are 1.27x and 0.79x respectively.
Notice that HON's current Price to Sales per share ratio is 0.93x, which is somewhat below its historical weighted average by 11%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.
HON Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of HON, Ockham views their current Cash Earnings as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for HON to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 18.04 and a 10.64 low over the same period.
Now that HON’s current price is $37.47 and its Price to Cash Earnings ratio is 9.23, we are very positive on its outlook from the cash earnings perspective. In fact, HON is now trading a full 36% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why HON has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
HON Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for HON to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for HON is $1.21 producing a current dividend yield of 3.23%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from HON against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from HON over previous years was 5.25% while the lowest dividend yield was 1.36%. The current dividend yield is below the historical median, which is slightly off-putting. We are a bit adverse to HON from this valuation metric.
Mad Money Has News on HON
The latest news from Mad Money on HON is available through Ockham's news analytics platform RazorWire.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… I reiterate I want to buy HONEYWELL, said that in an e-mail. Dan cody is being too deck negative about the stock. I owner is for my charitable trucks actionalertsplus. Com. …”
Its All About Earnings: Fast Money Talks About HON
The name of the game in business is profit, and we always pay attention for HON news as it relates to earnings.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Drop for HONEYWELL. > > earnings were in line. Reaffirmed guidants. $2. It's a buy. > > boeing was a pop this week. It was up 5%. . …”
HON's Valuation in Focus on Closing Bell
Closing Bell mentions some valuation metrics in regards to HON; have a read at what they think from Ockham's RazorWire.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs.
“… Weak outlooks today did not help as well from the like of HONEYWELL. Their profits were down 1% from a year ago. Arch coal, stock blistered today. Down by more than 14%. …”
Stocks in the News: Honeywell International, Incorporated Among the Twenty Most Discussed Stocks
We are observing a lot of attention being paid to HON in the news, so if you hold the stock you may want to take a look at what is going on.
At present, Ockham has a valuation stance of Undervalued on HON, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Honeywell International, Incorporated has actually sunk a bit in comparison to the others.
“… HONEYWELL beating expectations by a penny. Weakness in aviation and building equipment demand hurt the company's revenue which fell 7% but reaffirmed guidance for the full year ... …”
Valuation and Honeywell International, Incorporated Mentioned on Closing Bell
Closing Bell covered valuation multiples and metrics related to Honeywell International, Incorporated. For a full fundamental valuation analysis on HON visit the Ockham report.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… That is the type of thing that goldman sachs is looking at when it talks about a valuation call and also we did get weak outlooks today from HONEYWELL, profit's down 1s from a ... …”
Valuation and Honeywell International, Incorporated Mentioned on Street Signs
Street Signs mentions some valuation metrics in regards to HON; have a read at what they think from Ockham's RazorWire.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on HON, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Honeywell International, Incorporated has actually sunk a bit in comparison to the others.
“… We did get weak outlooks from the like of HONEYWELL. Arch cole was -- take a look at the stock move in arch coal, at the low of the day. …”
Its All About Earnings: Power Lunch Talks About HON
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed Power Lunch discussed earnings on HON.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Also weak outlooks from HONEYWELL, arch coal, and fortune brands not helping either. Let's go to bertha at the nasdaq. > > it is a tail of yin and yang. …”
HON's EPS discussed on The Call
HON's earnings per share was discussed on The Call which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Let's go to HONEYWELL. Here, basically a report that matched the expectations. There you see the stock down $1 or so as they sell the news. …”
HON's Valuation in Focus on Squawk On The Street
Honeywell International, Incorporated was talked about in relation to their valuation on Squawk On The Street, and you can see what the pundits are saying with RazorWire.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on HON, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Honeywell International, Incorporated has actually sunk a bit in comparison to the others.
“… HONEYWELL, arch coal, fortune brands, all three of those stocks gave cautious or below street view outlooks so those stocks are going to be certainly in focus. …”
More News Than Normal on HON from Squawk On The Street
Something important is going on with HON today, as it is getting a lot of attention on business television and influential blogs.
Based on our methodology, Honeywell International, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; HON has received less coverage from the financial media in business television and blogs.
“… We got energy, capital equipment in HONEYWELL as well. Revenue $8. 1 billion. That matched estimates. Bottom line did beat by a penny. 91 versus 90. But, t. …”