NASDAQ · Industrials

Honeywell International Inc.

HON · Conglomerates

$229.01

▲ 0.4 (0.17%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 38.7%

Operating Margin 19.0%

Net Income Margin 9.0%

Fin. Health

D⤢

Years to Pay Off Debt 44.7 yrs

Working Capital vs Long-Term Debt -$20.5B

Working Capital $8.5B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 10.68x

Cash Flow

D⤢

Free Cash Flow -$873M

CapEx % of Net Income 27.2%

Owner Earnings $1.4B

Profitability

Gross Profit Margin 38.7%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 19.0%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 9.0%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 44.7 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$20.5B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $8.5B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$873M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 27.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.4B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Honeywell International Inc.

Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally. The company's Aerospace Technologies segment offers auxiliary power units, propulsion engines, integrated avionics, connectivity services, electric power systems, management and technical services, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; thermal systems; and spare parts; repair, overhaul, and maintenance services. Its Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies with custom-engineered sensors and services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. Its Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrade of systems. The company's Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions; as well as connectivity, data integration and software solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

Market Data

Market Cap $145.1B

Enterprise Value $171.9B

P/E (TTM) 36.52

Dividend Yield 2.03%

Exchange NASDAQ

Key Margins

Gross Profit 38.7%

Operating Margin 19.0%

Net Margin 9.0%

Company Info

Sector Industrials

Industry Conglomerates

Employees 101000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Honeywell International Inc. at $229.01.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $229.01, the stock trades at a 818% premium to its Graham Number of $24.95. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	38.7%▲	36.1%•	N/A
Operating Margin %	19.0%▲	10.4%•	N/A
Net Income %	9.0%▲	-1.7%•	N/A
Diluted EPS	1.29▲	0.46•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$74.0B	$73.7B	N/A
Total Debt	$36.7B▲	$35.6B•	N/A
Working Capital	$8.5B▲	$7.0B•	N/A
Years to Pay Debt	44.75	-309.24	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$873M▼	$1.1B•	N/A
Owner Earnings	$1.4B	$156M	N/A
CapEx % of Net Income	27.2%	N/A	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-80,832	-152,136
Tax Rate For Calcs	0	0
Normalized EBITDA	2,386,000	1,116,000
Total Unusual Items	-787,000	-1,030,000
Total Unusual Items Excluding Goodwill	-787,000	-1,030,000
Net Income From Continuing Operation Net Minority Interest	821,000	-419,000
Reconciled Depreciation	357,000	213,000
Reconciled Cost Of Revenue	5,604,000	4,386,000
EBITDA	1,599,000	86,000
EBIT	1,242,000	-127,000
Net Interest Income	-266,000	-260,000
Interest Expense	356,000	374,000
Interest Income	90,000	114,000
Normalized Income	1,527,168	458,864
Net Income From Continuing And Discontinued Operation	821,000	-115,000
Total Expenses	7,406,000	6,146,000
Diluted Average Shares	638,400	638,600
Basic Average Shares	634,700	635,200
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	821,000	-115,000
Net Income Common Stockholders	821,000	-115,000
Net Income	821,000	-115,000
Minority Interests	26,000	8,000
Net Income Including Noncontrolling Interests	795,000	-123,000
Net Income Discontinuous Operations	0
Net Income Continuous Operations	795,000	-427,000
Tax Provision	91,000	-74,000
Pretax Income	886,000	-501,000
Other Income Expense	-585,000	-955,000
Other Non Operating Income Expenses	186,000	76,000
Special Income Charges	-782,000	-1,053,000
Gain On Sale Of Business	-233,000	-55,000
Other Special Charges	283,000		0
Write Off
Impairment Of Capital Assets	263,000	979,000
Restructuring And Mergern Acquisition	3,000	19,000
Earnings From Equity Interest	16,000	-1,000
Gain On Sale Of Security	-5,000	23,000
Net Non Operating Interest Income Expense	-266,000	-260,000
Interest Expense Non Operating	356,000	374,000
Interest Income Non Operating	90,000	114,000
Operating Income	1,737,000	714,000
Operating Expense	1,802,000	1,760,000
Research And Development	492,000	395,000
Selling General And Administration	1,310,000	1,365,000
General And Administrative Expense
Other Gand A
Salaries And Wages
Gross Profit	3,539,000	2,474,000
Cost Of Revenue	5,604,000	4,386,000
Total Revenue	9,143,000	6,860,000
Operating Revenue	9,143,000	6,860,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	323,900	322,287
Ordinary Shares Number	633,653	635,300
Share Issued	957,553	957,587
Net Debt	24,762,000	22,093,000
Total Debt	36,739,000	35,563,000
Tangible Book Value	-14,051,000	-13,911,000
Invested Capital	50,329,000	48,484,000
Working Capital	8,505,000	6,973,000
Net Tangible Assets	-14,051,000	-13,911,000
Capital Lease Obligations		983,000	1,039,000
Common Stock Equity	13,590,000	13,904,000
Total Capitalization	42,600,000	41,045,000
Total Equity Gross Minority Interest	14,667,000	15,030,000
Minority Interest	1,077,000	1,126,000
Stockholders Equity	13,590,000	13,904,000
Gains Losses Not Affecting Retained Earnings	-4,973,000	-5,146,000
Other Equity Adjustments	-4,973,000	-5,146,000
Treasury Stock	43,904,000	43,029,000
Retained Earnings	51,029,000	50,964,000
Additional Paid In Capital	10,480,000	10,157,000
Capital Stock	958,000	958,000
Common Stock	958,000	958,000
Total Liabilities Net Minority Interest	59,321,000	58,651,000
Total Non Current Liabilities Net Minority Interest	37,236,000	35,237,000
Other Non Current Liabilities	6,537,000	375,000
Liabilities Heldfor Sale Non Current		0	740,000
Derivative Product Liabilities		716,000	195,000
Employee Benefits	108,000	1,258,000
Non Current Pension And Other Postretirement Benefit Plans	108,000	1,258,000
Tradeand Other Payables Non Current		1,518,000	1,423,000
Non Current Deferred Liabilities	1,581,000	2,688,000
Non Current Deferred Revenue		1,111,000	1,166,000
Non Current Deferred Taxes Liabilities	1,581,000	1,577,000
Long Term Debt And Capital Lease Obligation	29,010,000	27,950,000
Long Term Capital Lease Obligation		809,000	863,000
Long Term Debt	29,010,000	27,141,000
Long Term Provisions		732,000	404,000
Current Liabilities	22,085,000	23,414,000
Other Current Liabilities	1,218,000	1,376,000	1,494,000
Current Deferred Liabilities		3,860,000	3,429,000
Current Deferred Revenue		3,860,000	3,429,000
Current Debt And Capital Lease Obligation	7,729,000	7,613,000
Current Capital Lease Obligation		174,000	176,000
Current Debt	7,729,000	7,439,000
Other Current Borrowings		7,439,000	5,598,000
Pensionand Other Post Retirement Benefit Plans Current		1,401,000	1,328,000
Current Provisions		180,000	237,000
Payables And Accrued Expenses	13,138,000	8,984,000
Current Accrued Expenses	7,112,000	1,663,000
Interest Payable		384,000	379,000
Payables	6,026,000	7,321,000
Total Tax Payable		1,006,000	1,209,000
Income Tax Payable		791,000	957,000
Accounts Payable	6,026,000	6,315,000
Total Assets	73,988,000	73,681,000
Total Non Current Assets	43,398,000	43,294,000
Other Non Current Assets	9,480,000	9,247,000
Non Current Deferred Assets	199,000	199,000
Non Current Deferred Taxes Assets	199,000	199,000
Non Current Accounts Receivable			171,000
Investments And Advances	1,414,000	1,404,000
Goodwill And Other Intangible Assets	27,641,000	27,815,000
Other Intangible Assets	6,562,000	6,736,000
Goodwill	21,079,000	21,079,000
Net PPE	4,664,000	4,629,000
Accumulated Depreciation		-7,431,000	-7,254,000
Gross PPE		12,060,000	11,711,000
Construction In Progress		764,000	764,000
Machinery Furniture Equipment		8,095,000	7,724,000
Buildings And Improvements		3,024,000	3,031,000
Land And Improvements		177,000	192,000
Current Assets	30,590,000	30,387,000
Other Current Assets	1,392,000	1,182,000
Assets Held For Sale Current	2,377,000	2,492,000
Inventory	6,369,000	6,162,000
Finished Goods	3,401,000	3,321,000
Work In Process	1,230,000	1,203,000
Raw Materials	1,738,000	1,638,000
Receivables	8,062,000	7,621,000
Accounts Receivable	8,062,000	7,621,000
Allowance For Doubtful Accounts Receivable	-165,000	-202,000
Gross Accounts Receivable	8,227,000	7,823,000
Cash Cash Equivalents And Short Term Investments	12,390,000	12,930,000
Other Short Term Investments	413,000	443,000
Cash And Cash Equivalents	11,977,000	12,487,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-873,000	1,146,000
Repurchase Of Capital Stock	-1,000,000	-100,000
Repayment Of Debt	-18,623,000	-7,458,000
Issuance Of Debt	4,758,000	5,126,000
Issuance Of Capital Stock	170,000	97,000
Capital Expenditure	-223,000	-58,000
End Cash Position	11,977,000	12,487,000
Beginning Cash Position	12,487,000	12,930,000
Effect Of Exchange Rate Changes	-8,000	9,000
Changes In Cash	-502,000	-452,000
Financing Cash Flow	267,000	-1,313,000
Cash Flow From Continuing Financing Activities	267,000	-1,313,000
Net Other Financing Charges	15,743,000	1,784,000
Cash Dividends Paid	-781,000	-762,000
Common Stock Dividend Paid	-781,000	-762,000
Net Common Stock Issuance	-830,000	-3,000
Common Stock Payments	-1,000,000	-100,000
Common Stock Issuance	170,000	97,000
Net Issuance Payments Of Debt	-13,865,000	-2,332,000
Net Short Term Debt Issuance	-1,260,000	-978,000
Short Term Debt Payments	-6,018,000	-6,104,000
Short Term Debt Issuance	4,758,000	5,126,000
Net Long Term Debt Issuance	-12,605,000	-1,354,000
Long Term Debt Payments	-12,605,000	-1,354,000
Long Term Debt Issuance	0	0
Investing Cash Flow	-119,000	-343,000
Cash From Discontinued Investing Activities	0
Cash Flow From Continuing Investing Activities	-119,000	-74,000
Net Investment Purchase And Sale	103,000	-13,000
Sale Of Investment	297,000	421,000
Purchase Of Investment	-194,000	-434,000
Net Business Purchase And Sale	1,000	-11,000
Sale Of Business	6,000	0
Purchase Of Business	-5,000	-11,000
Net PPE Purchase And Sale		8,000	0
Sale Of PPE		8,000	0
Capital Expenditure Reported	-223,000	-58,000
Operating Cash Flow	-650,000	1,204,000
Cash From Discontinued Operating Activities	0
Cash Flow From Continuing Operating Activities	-650,000	871,000
Change In Working Capital	-2,104,000	985,000
Change In Other Working Capital	-205,000	-204,000
Change In Other Current Assets	-135,000	-34,000
Change In Payables And Accrued Expense	-1,114,000	1,045,000
Change In Accrued Expense	-825,000	731,000
Change In Payable	-289,000	314,000
Change In Account Payable	-289,000	314,000
Change In Inventory	-203,000	-32,000
Change In Receivables	-447,000	210,000
Changes In Account Receivables	-447,000	210,000
Other Non Cash Items	33,000	-880,000
Stock Based Compensation	57,000	42,000
Asset Impairment Charge	263,000	979,000
Deferred Tax	-117,000	-36,000
Deferred Income Tax	-117,000	-36,000
Depreciation Amortization Depletion	357,000	213,000
Depreciation And Amortization	357,000	213,000
Amortization Cash Flow	223,000	230,000
Amortization Of Intangibles	223,000	230,000
Depreciation	134,000	-17,000
Operating Gains Losses	66,000	-5,000
Pension And Employee Benefit Expense	-167,000	-9,000
Gain Loss On Sale Of Business	-6,000	4,000
Net Income From Continuing Operations	795,000	-427,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $8.9B ▲ $9.1B +2.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 38.8% ▲ 38.7% -0.1pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 19.5% ▲ 19.0% -0.5pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 16.2% ▼ 9.0% -7.3pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$9.1B/qtr (≈$36.6B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.39x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$873M

vs Positive

Operating Cash Flow

-$650M

Latest quarter · Buffett's cash reality check

ROIC

2.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

9.9x

Net Assets: $14.7B

⚠️ Net margin compressed 7.3pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.

Peers & Industry

No auto-detected peers for Conglomerates. You can manually compare HON against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.05%

Low — management has little skin in the game

Return on Equity (ROE)

6.0%

Weak — poor returns on equity

Return on Assets (ROA)

1.1%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$3.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+3.3% YoY

Debt is roughly stable

Leadership Team

Vimal Kapur

Chairman & CEO

Age 60

Pay: $5,317,705

0.648% of net income

Michal Stepniak

Senior VP & CFO

Age 47

Pay: $2,577,312

0.314% of net income

Billal Hammoud

President & CEO of Honeywell Building Automation

Age 52

Pay: $1,760,703

0.214% of net income

James Currier

President & CEO of Aerospace Technologies

Age 58

Pay: $2,068,581

0.252% of net income

Jim Masso

President & CEO of Honeywell Process Automation

Age 40

Pay: $618,058

0.075% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.03%	48,831,876
Vanguard Capital Management LLC	5.94%	41,280,753
State Street Corporation	4.57%	31,726,805
Morgan Stanley	2.65%	18,428,804
Wellington Management Group, LLP	2.40%	16,635,316
Geode Capital Management, LLC	2.34%	16,250,601
Vanguard Portfolio Management LLC	2.25%	15,650,414
Franklin Resources, Inc.	1.95%	13,545,305

Risk Analysis

Beta (Market Risk)

0.84

Low volatility — more stable than the market

Short Interest

2.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

2.57x

High leverage — significant financial risk

Current Ratio

1.39x

Adequate liquidity

52-Week Price Range

Low: $186.76 Current: $229.01 High: $248.18

Currently at 69% of 52-week range

Honeywell International Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis