HON - Honeywell: Manufacturing The Future

2024-04-04 03:57:28 ET

Summary

• Honeywell’s management has transformed the business, with a focus on modernizing its operational capabilities and transitioning toward higher-growth segments and complex technologies.
• Its organic growth trajectory and margins have improved, contributing to increased distributions and a strong share price performance.
• We are expecting industry “mega trends” to drive strong growth in the coming years, particularly from electrification, digitalization, and automation.
• The Company is performing well relative to its peers, with its only weakness being growth. With this expected to improve, the business is likely to be the undisputed leader.
• HON is attractively valued we feel, with scope for further upside.

Introduction and thesis

Honeywell International Inc. ( HON ) is a diversified multinational conglomerate based in Charlotte, North Carolina. Founded in 1906, Honeywell has evolved into a global technology and manufacturing company with a diverse range of businesses, including aerospace, building technologies, performance materials, and safety and productivity solutions. With a presence in over 70 countries, Honeywell is known for its innovative products and solutions that improve the quality of life for people worldwide....

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