Investment Thesis for Honeywell International, Inc. (NYSE: HON)

Abstract

This working paper is an in-depth analysis of Honeywell International Inc. Our analysis examines the economic factors that impact Honeywell’s underlying business and how Honeywell has adapted to these ever-changing factors. This economic analysis is then combined with our proprietary, Hanke-Guttridge Discounted Cash Flow (HG-DCF) model to determine Honeywell’s financial position. The HG-DCF model will be presented along-side Monte-Carlo simulations to reveal the distribution of probable free cash flows and the likelihood of future earnings. In addition to these quantitative factors, we also examine the compensation plans of Honeywell’s executives to assess alignment with shareholders. At the conclusion of this analysis, it is our intention for readers to understand Honeywell’s business plan and the company’s financial standing to arrive at a sound investment decision.