Honeywell International Intrinsic Value – HONEYWELL INTERNATIONAL Reports FY2022 Q4 Earnings Results as of December 31, 2022.
March 14, 2023
Earnings Overview
On February 2, 2023, HONEYWELL INTERNATIONAL ($NASDAQ:HON) reported their FY2022 fourth-quarter earnings results for the period ending December 31, 2022. Total revenue came to USD 1.0 billion, a decline of 28.7% year over year. Net income, however, grew 6.1% to USD 9.2 billion.
Transcripts Simplified
Honeywell delivered strong Q4 performance, with organic sales up 10% year-over-year and segment margin expanding 150 basis points year-over-year. Orders were up 2% organically and 6% sequentially, driving a new record backlog of $29.6 billion. Free cash flow in Q4 was $2.1 billion, with 125% adjusted conversion.
Capital deployment for the year was $7.9 billion, including $4.2 billion of share repurchases and $2.7 billion in dividend payments. For the full year, Honeywell delivered 6% organic sales growth, 70 basis points of margin expansion and $8.76 of adjusted earnings per share.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Honeywell International. More…
| Total Revenues | Net Income | Net Margin |
| 35.47k | 4.97k | 15.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Honeywell International. More…
| Operations | Investing | Financing |
| 5.27k | -93 | -6.33k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Honeywell International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 62.27k | 44.95k | 24.99 |
Key Ratios Snapshot
Some of the financial key ratios for Honeywell International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.1% | -2.1% | 19.2% |
| FCF Margin | ROE | ROA |
| 12.7% | 24.7% | 6.8% |
Market Price
The stock opened at $199.0 and closed at $207.4, an increase of 0.3% from the prior closing price of 206.7. This marks a significant showing for HONEYWELL INTERNATIONAL, as the company has seen steady growth since the beginning of the fiscal year. This positive result can largely be attributed to their ongoing efforts to optimize costs and increase efficiency across their operations. Aside from this impressive financial performance, HONEYWELL INTERNATIONAL also announced several new initiatives to accelerate innovation and further solidify their competitive edge in the market.
These include investments in research and development, strategic partnerships with industry leaders, and a new platform to connect customers with their products and services. Overall, HONEYWELL INTERNATIONAL’s results for the fourth quarter of FY2022 indicate that the company is on track for continued success in the coming years. Their strong financial performance, combined with their commitment to innovation, sets them up for long-term growth and profitability in the future. Live Quote…
Analysis – Honeywell International Intrinsic Value
Our team at GoodWhale performed an in-depth analysis of HONEYWELL INTERNATIONAL‘s wellbeing. After carefully considering the company’s financials, market position, and other key factors, we calculated the intrinsic value of one HONEYWELL INTERNATIONAL share to be around $204.0. This number was determined through our proprietary Valuation Line. At the time of this analysis, the stock price of HONEYWELL INTERNATIONAL was $207.4, slightly overvalued by 1.7%. This is to be expected though, as the stock market is constantly in flux and prices can be affected by many external factors. In spite of this, we believe that the stock is being traded at a fair price. More…
Peers
Honeywell International Inc is an American multinational conglomerate company that produces a variety of commercial and consumer products, engineering services and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments. Its competitors include Signet International Holdings Inc, LCTI Low Carbon Technologies International Inc, Noritake Co Ltd.
– Signet International Holdings Inc ($OTCPK:LWCTF)
Noritake Co Ltd is a Japanese company that manufactures and sells tableware and other ceramic products. The company has a market cap of 58.36 billion as of 2022 and a return on equity of 6.39%. Noritake Co Ltd has a long history, dating back to 1904 when it was founded in Nagoya, Japan. The company’s products are sold in over 90 countries and it has over 8,000 employees. Noritake Co Ltd’s products include dinnerware, flatware, glassware, and giftware. The company also manufactures and sells hotel wares, industrial ceramics, and electronic ceramics.
Summary
Honeywell International‘s fourth quarter earnings report for 2022 showed a 28.7% decrease in total revenue compared to the same period a year earlier. Despite this, net income rose 6.1% year-over-year to USD 9.2 billion. For investors, this suggests that the company is able to maintain profitability despite lower overall revenues.
The company’s cost cutting measures, such as streamlining operations and improving efficiency, have enabled it to remain profitable in a challenging economic environment. Prospective investors should consider Honeywell International as a stable option with potential upside as the economy recovers.
