Honeywell Beneish M Score

HON -  USA Stock  

USD 217.65  1.78  0.81%

This module uses fundamental data of Honeywell International to approximate the value of its Beneish M Score. Honeywell International M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Honeywell International Piotroski F Score and Honeywell International Altman Z Score analysis.

Honeywell Beneish M Score 

 
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Issuance Repayment of Debt Securities is expected to rise to about 7.3 B this year, although the value of Total Debt will most likely fall to about 21.2 B. Honeywell International Accounts Payable Turnover is quite stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 7.62. Accrued Expenses Turnover is expected to rise to 5.91 this year, although the value of Long Term Debt to Equity will most likely fall to 0.68.
At this time, it appears that Honeywell International is an unlikely manipulator. The earnings manipulation may begin if Honeywell International's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Honeywell International executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Honeywell International's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.44
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.98
Asset Quality
0.97
Expense Coverage
1.02
Gross Margin Strengs
0.97
Accruals Factor
1.02
Depreciation Resistance
0.99
Net Sales Growth
1.08
Financial Leverage Condition
0.94

Honeywell International Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Honeywell International's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues31.6 B29.4 B
Significantly Up
Decreasing
Slightly volatile
Selling General and Administrative ExpenseB5.5 B
Significantly Up
Increasing
Stable
Net Cash Flow from Operations6.8 B7.1 B
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion1.2 B1.2 B
Fairly Up
Increasing
Slightly volatile
Total Assets69 B74.3 B
Significantly Down
Increasing
Slightly volatile
Investments2.3 B1.9 B
Fairly Up
Increasing
Slightly volatile
Investments Current1.5 B1.1 B
Significantly Up
Increasing
Stable
Investments Non Current748.1 M787.8 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net6.5 B6.4 B
Fairly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables6.5 B6.1 B
Notably Up
Decreasing
Slightly volatile
Total Liabilities48.5 B53.8 B
Moderately Down
Increasing
Slightly volatile
Current Assets30 B32.4 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current39 B41.9 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities21.1 B22.1 B
Sufficiently Down
Increasing
Slightly volatile
Liabilities Non Current27.3 B31.7 B
Fairly Down
Increasing
Slightly volatile
Total Debt21.2 B25.7 B
Significantly Down
Increasing
Slightly volatile
Debt Current5.9 B6.9 B
Fairly Down
Increasing
Slightly volatile
Debt Non Current15.3 B18.8 B
Significantly Down
Increasing
Slightly volatile
Operating Income6.7 B6.6 B
Fairly Up
Increasing
Slightly volatile
Gross Margin0.360.37
Fairly Down
Increasing
Slightly volatile

Honeywell International Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Honeywell International's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Honeywell International in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Honeywell International's degree of accounting gimmicks and manipulations.

About Honeywell International Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

6.03 BillionShare
Honeywell International Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 6.03 Billion

Honeywell International Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Honeywell International. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues40.53 B41.8 B36.71 B32.64 B29.37 B31.59 B
Total Assets59.47 B57.77 B58.68 B64.59 B74.27 B69 B
Current Assets26 B24.36 B24.3 B28.18 B32.4 B29.97 B
Assets Non Current33.47 B33.41 B34.38 B36.41 B41.87 B39.03 B
Total Liabilities42.8 B39.41 B39.97 B46.8 B53.82 B48.45 B
Current Liabilities18.86 B18.92 B18.1 B19.2 B22.08 B21.12 B
Total Debt17.88 B16.21 B16 B22.38 B25.74 B21.24 B
Debt Current5.31 B6.46 B4.89 B6.04 B6.95 B5.93 B
Debt Non Current12.57 B9.76 B11.11 B16.34 B18.79 B15.31 B
Operating Income6.3 B6.71 B6.85 B5.7 B6.55 B6.72 B
Investments4.42 B2.37 B1.94 B1.63 B1.87 B2.26 B
Investments Current3.76 B1.62 B1.35 B945 M1.09 B1.51 B

About Honeywell International Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Honeywell International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Honeywell International using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Honeywell International based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The company was incorporated in 1985 and is headquartered in Charlotte, North Carolina. Honeywell International operates under Conglomerates classification in the United States and is traded on NASDAQ Exchange. It employs 103000 people.

Honeywell International Investors Sentiment

The influence of Honeywell International's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Honeywell. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Honeywell International Implied Volatility

    
  75.38  
Honeywell International's implied volatility exposes the market's sentiment of Honeywell International stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Honeywell International's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Honeywell International stock will not fluctuate a lot when Honeywell International's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Honeywell International in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Honeywell International's short interest history, or implied volatility extrapolated from Honeywell International options trading.

Current Sentiment - HON

Honeywell International Investor Sentiment

Predominant part of Macroaxis users are currently bullish on Honeywell International. What is your judgment towards investing in Honeywell International? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check Honeywell International Piotroski F Score and Honeywell International Altman Z Score analysis. Note that the Honeywell International information on this page should be used as a complementary analysis to other Honeywell International's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

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Is Honeywell International's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honeywell International. If investors know Honeywell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honeywell International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Honeywell International is measured differently than its book value, which is the value of Honeywell that is recorded on the company's balance sheet. Investors also form their own opinion of Honeywell International's value that differs from its market value or its book value, called intrinsic value, which is Honeywell International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honeywell International's market value can be influenced by many factors that don't directly affect Honeywell International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honeywell International's value and its price as these two are different measures arrived at by different means. Investors typically determine Honeywell International value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honeywell International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.