KEY POINTS FROM INTEGRATED COMPANY DASHBOARD (ICD) JUST RELEASED ON FIRST CALL HONEYWELL INT'L (HON)INTEGRATED COMPANY DASHBOARD
TABLE OF CONTENTS
Quarterly Snapshot: Relevance based organization, detailed revenue analysis, and structured review of laterals, end markets and geography.
Company Dashboard: 10 quarter graphical analysis of orders, revenue, margin, balance sheet and cash flow.
Segment Business Unit Trends: 10 quarter analysis of each segment, including key trends, data by business unit and supporting notes.
OUTLOOK: POSITIVE
Our $115 target translates into a 5% FCF yield on '16 forecasts assuming an 80% FCF/net income ratio.
HON offers potential for "market plus" returns, exposure to growing end markets and the backstop of an outstanding operational track recorc.
SNAPSHOT:
ROBUST EXECUTION TRUMPS SLOWER TOP LINE
1. Weak revenue, solid EPS growth.
2. Guidance, estimates. Full year guide now $6.00-6.15, up $0.05 on low end of range. We stay at $6.15. Our '16 forecast remains $6.80.
3. Execution story remains very strong - margin up 220 bps.
4. Hedging 85% of FX in '15 (done) and '16 (working on it) to give time to respond upon further USD strength.
5. Oil price - seeing some impact coming, planning for more, but also see benefit to consumer and other end markets.
COMPANY DASHBOARD:
Revenue - underlying growth trends remain solid.
Profit, margin - margins continue their steady climb.
Balance sheet - fortress like. Company wants deals but hates the prices. (We understand the term is "New Hampshire Cheap" - ask Dave Cote to explain).
FCF - solid, improving cash generation.