Introduction To Honeywell International
Honeywell International Inc. (HON) is an American multinational industrial conglomerate, which produces various commercial and consumer products, provides a variety of engineering services, and sells aerospace systems. Customers range from private consumers to large commercial enterprises and governments.
HON stock has performed well over the past year. As shown in the table below, the stock has performed +11.91% over the past twelve months.
However, I believe that HON stock offers limited upside at current prices. Base-case assumptions for growth and margins, which I will visit later on in this article, suggest the company is probably modestly overvalued.
Nevertheless, for investors who are not particularly interested in medium-term upside on the equity price, HON stock still offers a 2% dividend yield, with the opportunity for longer-term dividend and share price appreciation (well beyond 12 months).
