HON’s trailing twelve-month earnings (from 31 December 2019) of US$6.1b has declined by -9.2% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 4.8%, indicating the rate at which HON is growing has slowed down. Why is this? Well, let’s take a look at what’s transpiring with margins and whether the whole industry is feeling the heat.
In terms of returns from investment, Honeywell International has invested its equity funds well leading to a 33% return on equity (ROE), above the sensible minimum of 20%.
What does this mean?
Though Honeywell International’s past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors affecting its business.