Summary
The spinoff of the Homes and Global Distribution and Transportation "Turbocharger" divisions is expected to be completed this year.
The valuation is looking attractive with the remaining business segments providing operational focus on Honeywell's core competencies.
The stock is undervalued by ~10% and the shares are a good dividend income play.
Note to readers
I am going to preface my article by indicating my financial model and analysis is analyzing Honeywell with the spun off divisions of Homes and Global Distribution and Transportation Turbocharger divisions included.
Synopsis
Honeywell (NYSE: HON) is a diversified industrial conglomerate undergoing a divestiture/spinoff of their Homes and Global Distribution and Transportation Turbocharger divisions to focus their core operations on the segments of Aerospace, Home and Building Technologies, Performance Materials and Technologies and Safety and Productivity Solutions. The company is focusing their core operations on faster growing and better margin business segments, while unlocking shareholder value through the divestiture of the Turbo and Home businesses.
