Honeywell Automation India Limited Fundamental Analysis
Honeywell Automation India Limited Fundamental Analysis
Honeywell Automation India Limited (HONAUT.NS) shows weak financial fundamentals with a PE ratio of 64.23, profit margin of 11.21%, and ROE of 12.55%. The company generates $46.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HONAUT.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakHONAUT.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakHONAUT.NS trades at a premium to fair value.
Growth Score
ModerateHONAUT.NS shows steady but slowing expansion.
Financial Health Score
ExcellentHONAUT.NS maintains a strong and stable balance sheet.
Profitability Score
WeakHONAUT.NS struggles to sustain strong margins.
Key Financial Metrics
Is HONAUT.NS Expensive or Cheap?
P/E Ratio
HONAUT.NS trades at 64.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HONAUT.NS's PEG of 229.12 indicates potential overvaluation.
Price to Book
The market values Honeywell Automation India Limited at 7.56 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 51.55 times EBITDA. This signals the market has high growth expectations.
How Well Does HONAUT.NS Make Money?
Net Profit Margin
For every $100 in sales, Honeywell Automation India Limited keeps $11.21 as profit after all expenses.
Operating Margin
Core operations generate 13.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.55 in profit for every $100 of shareholder equity.
ROA
Honeywell Automation India Limited generates $8.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Honeywell Automation India Limited generates limited operating cash flow of $2.42B, signaling weaker underlying cash strength.
Free Cash Flow
Honeywell Automation India Limited produces free cash flow of $2.32B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $262.92 in free cash annually.
FCF Yield
HONAUT.NS converts 0.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
229.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How HONAUT.NS Stacks Against Its Sector Peers
| Metric | HONAUT.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.23 | 30.65 | Worse (Expensive) |
| ROE | 12.55% | 1211.00% | Weak |
| Net Margin | 11.21% | -20858.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 3.52 | 21.70 | Strong Liquidity |
| ROA | 8.43% | -1320842.00% (disorted) | Weak |
HONAUT.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Honeywell Automation India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure