Honeywell International Inc. (NYSE:HON) persists its position slightly strong in context of buying side, while shares price increased 0.63% during latest trading session.
Profitability Ratio Analysis; To measure firm’s performance and profitability, we focus on ordinary profitability ratio, HON has gross profit margin of 30.90% for trailing twelve months and operating margin is calculated as 16.40%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the Honeywell International Inc. (NYSE:HON)’s ROI concludes as 13.80%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of 9.20%, which signifies how profitable a firm is relative to its total assets.
Experts’ Critical Views
Lets us look over what analysts have to say about performance of the HON. EPS is usually the indicator of profitability for the company. According to WSJ analysis, the Q4 2016 current estimates trends were for $1.62 as compared to the next year Q1 current trend of $1.75. While on annual basis the current EPS estimates trend for FY 2017 came in for $7.66 as compared to three months ago $7.64.
The stock prices target chart showed high target of 148 kept by analysts at WSJ while the average price target was for 134.70 as compared to current price of 127.16. Somehow, the stock managed to gain BUY ratings by 14 analysts in current tenure as 4 analysts having overweight ratings, 6 recommend as HOLD. Overall, the consensus ratings were for Overweight by the pool of analysts.
Honeywell International Inc. (NYSE:HON) holds price to book ratio of 5.00 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 20.48, which is authentic method to judge but not universal for all situation.
Taking look on ratio analysis, HON has forward price to earnings ratio of 16.60, compare to its price to earnings ratio of 20.48. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 2.93. The co is presenting price to cash flow as 9.80 and while calculating price to free cash flow it concluded at 38.88, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
To make strengthen these views, the active industry firm has Quick Ratio of 1.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the Honeywell International Inc. (NYSE:HON) has debt to equity ratio of 0.81, sometimes it remain same with long term debt to equity ratio. The firm has price volatility of 1.14% for a week and 1.04% for a month. Its beta stands at 0.96 times. Narrow down four to firm performance, its weekly performance was 0.09% and monthly performance was 2.87%.