Is the business good?
How good a business is HON?
Honeywell earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
14%
Return on invested capital · cost of capital 9.0% · 5.3 points above what the capital costs: growth creates value
- Operating margin
- 21%
Operating margin · Conglomerates median 12% · 12 months to Q2 2026
- Cash conversion
- 0.49×
Cash conversion · 0.94× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.59%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2022 | 23% |
| FY2023 | 23% |
| FY2024 | 22% |
| FY2025 | 22% |
Details›
- Gross margin12 months to Q2 2026
- 37%
- Operating margin12 months to Q2 2026
- 21%
- Net margin12 months to Q2 2026
- 22%
- Free cash flow margin
- 11%
- R&D as % of revenue
- 5.0%
- Revenue, trailing twelve months
- $38.1B
- Free cash flow, trailing twelve months
- $4.01B
- Net income, trailing twelve months
- $8.21B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.