Honeywell: Short- And Long-Term Catalysts

The company’s Command and Control Suite is an innovation that can help businesses improve industrial security and safety in a way that minimizes disruption to regular operations. For example: evacuations, safety incidents, and security breaches can be disruptive to normal operations.Honeywell’s Command and Control Suite enhances the integration of safety and security through entire facilities. This allows key decision makers to effectively manage incidents and to continually improve safety and security. 

Customers benefit from higher productivity from the Command and Control Suite because it reduces training time and errors. It provides users with real-time information which complements security personnel’s knowledge. Ultimately, it lowers costs for customers as productivity increases. Therefore, the Suite is likely to attract customers and revenue and they seek to lower costs while enhancing their facilities’ safety and security.

There are numerous other examples of Honeywell’s innovations. The important thing for investors to know is that Honeywell continually strives to innovate to give customers tangible value.Innovation is likely to remain a long-term catalyst for the company’s revenue growth and the stock for the long-term.

Fundamentals

Honeywell has strong fundamentals to drive and support growth for the short- and long-term. The balance sheet is solid with 1.25X more current assets than current liabilities.So, the company is likely to easily handle its short-term obligations. 

Honeywell also keeps its balance sheet strong for the long-term. The company has 1.6X more total assets than total liabilities. This will increase the likelihood of Honeywell to handle its longer-term debt obligations. 

The fundamentals are further enhanced as a result of growing cash flow. The company is projecting free cash flow growth of 5% to 10% for the full year in 2016. That free cash flow growth is what will be used for shareholder friendly dividends and share repurchases going forward. 

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Disclaimer:This article represents the author's opinions.  Investors should do their own due diligence and consult with an investment advisor to determine which stocks are right for ...

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