Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Honeywell Augments Fire Business With SCAME Acquisition

Published 11/30/2017, 08:30 PM
Updated 07/09/2023, 06:31 AM

Diversified technology company, Honeywell International Inc. (NYSE:HON) recently inked a definitive agreement to acquire Italian firm SCAME Sistemi, s.r.l. for an undisclosed amount. The strategic transaction is likely to augment Honeywell’s fire business within the Connected Building solutions portfolio and extend its customer coverage.

Since its inception in 1979, SCAME has created a niche for itself with a wide variety of products in the field of fire & gas detection and fire extinguishing systems. It offers an integrated portfolio of products that are user friendly and highly customizable through a single interface and a supervisory software platform. These include system configuration, testing and monitoring to set the equipment at predefined safety integrity levels according to the unique needs of customers. This, in turn, would allow users to maintain a tolerable risk level for their safety systems and thereby actively manage operating risks for a potentially dangerous system failure.

With such innovative products, SCAME would enable Honeywell to offer a seamless integration of industrial controllers and management systems that facilitate easy access to critical information, alerts and control. This would make industrial sites across the globe more safe and secure, creating new business opportunities for Honeywell, thereby boosting revenues.

Honeywell has outperformed the industry with an average year-to-date return of 34.7% as against a decline of 3% for the latter. Its diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. The company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positives amid a challenging macroeconomic environment.



In addition, the company’s balanced mix of long- and short-cycle businesses, along with a decent organic growth in new products and expansion in high-growth regions augur well on a long-term basis. With a flexible yet disciplined focus on cost and productivity, Honeywell remains aims to increase its presence in high-growth regions. Additionally, the company is building a robust pipeline of new products.

Honeywell currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Danaher Corporation (NYSE:DHR) , Federal Signal Corporation (NYSE:FSS) and Leucadia National Corporation (NYSE:LUK) , each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Danaher has a long-term earnings growth expectation of 10.6%. It has beaten earnings estimates in each of the trailing four quarters with an average positive surprise of 2.6%.

Federal Signal has beaten earnings estimates thrice in the trailing four quarters with an average positive surprise of 11.5%.

Leucadia has a long-term earnings growth expectation of 18%. It has beaten earnings estimates thrice in the trailing four quarters with an average positive surprise of 21.2%.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>



Danaher Corporation (DHR): Free Stock Analysis Report

Honeywell International Inc. (HON): Free Stock Analysis Report

Leucadia National Corporation (LUK): Free Stock Analysis Report

Federal Signal Corporation (FSS): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.