Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 3 Sept 2026
HON· Industrials
Honeywell International
Honeywell's diversification lacks a strong moat and valuation is stretched with a P/E of 36.1, reflecting limited upside.
Buffett fit
Partial fit
Owner
38
Durability
63
Management
54
Price
12
Score updated 29 Oct 2026 · analysis from 3 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Honeywell would mean managing a complex conglomerate with moderate and no clear .
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Honeywell's durability is supported by its diversified operations and consistent profitability over the past 5 years.
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Honeywell's share count decreased at a CAGR of -1.98%, indicating some activity.
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With a of 36.1 and an yield of 3.65%, Honeywell is priced for perfection, leaving little room for error.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Net income of $4.73B reflects consistent profitability.
- 2 of $5.39B exceeds net income, indicating strong cash conversion.
- 3Share count decreased at a CAGR of -1.98%, showing some shareholder returns.
- 4Dividend yield of 2.02% provides income to shareholders.
Concerns
5- 1 of 36.1 suggests high market expectations not supported by growth.
- 2 of 8.2% is below the sector's top-quintile cutoff of 13.6%.
- 3Net debt/EBITDA of 3.31 indicates high .
- 4Revenue CAGR of 2.15% shows sluggish growth.
Price history
$222-1.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Honeywell operates across Aerospace, Building Technologies, Performance Materials, and Safety Solutions. Aerospace contributes significantly with propulsion engines and avionics. Building Technologies focuses on control systems and energy management, while Performance Materials offers automation and low global-warming materials. Safety Solutions provides protective equipment. The unit economics are pressured by low revenue growth (2.15% CAGR) and a declining EPS (-1.96% CAGR).
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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Questions about Honeywell International
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