Honeywell InternationalSTU:ALD +0.49%71 Gross Margin % is 38.71% as of Mar. 2026, which is 11% above its 10-year median of 34.78. GuruFocus rates STU:ALD with a GF Score™ of 71/100 and a GF Value™ of €194.03 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 511 Conglomerates companies, Honeywell International ranks better than 72.41% on this metric.
STU:ALD's Gross Margin % is ranked better than 72.41% of 511
companies
in the Conglomerates industry
Industry Median: 25.96
vs STU:ALD: 36.95
Honeywell International had a gross margin of 38.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Honeywell International was 2.70% per year.
Honeywell International (STU:ALD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Honeywell International had a gross margin of 38.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Honeywell International Gross Margin % Related Terms
Honeywell International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:ALD vs MMM, VMI, SEB: Gross Margin % Comparison
For the Conglomerates subindustry, Honeywell International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Honeywell International Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Honeywell International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Honeywell International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Honeywell International (STU:ALD) has a Gross Margin % of 38.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Honeywell International and its competitors. This is 11% above median its historical median of 34.78. Over the past decade, Honeywell International's Gross Margin % has ranged from 29.58 to 38.47. According to the industry distribution chart, Honeywell International ranks #141 out of 511 companies in the Conglomerates industry, placing it in the top 27.6%.
Is Honeywell International's Gross Margin % too high?
Honeywell International's current Gross Margin % of 38.71% is 11% above median its 10-year median of 34.78. Over the past 10 years, this metric has ranged from a low of 29.58 to a high of 38.47. The Conglomerates industry median Gross Margin % is 25.96. Honeywell International's value of 38.71% is 49.1% above this industry median. Based on the distribution chart, Honeywell International ranks #141 out of 511 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Honeywell International has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honeywell International's Gross Margin % compare to MMM and VMI?
According to the Conglomerates industry distribution chart, Honeywell International ranks #141 out of 511 companies for Gross Margin %. This puts Honeywell International in the upper half of its industry. The industry median Gross Margin % is 25.96. Honeywell International's value of 38.71% is 49.1% above this benchmark. Historically, Honeywell International's own Gross Margin % has ranged from 29.58 to 38.47 over the past decade. While the company's 10-year median is 34.78 vs. the industry median of 25.96, Honeywell International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honeywell International's current Gross Margin % of 38.71% is 49.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Honeywell International and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell International's current Gross Margin % is 38.71%, which is 11% above median its own 10-year median of 34.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeywell International stock overvalued right now?
Based on GuruFocus' analysis, Honeywell International (STU:ALD) is currently considered Significantly Overvalued. The stock's GF Value™ is €194.03, compared to a current price of €408.70 — trading 110.6% above its estimated fair value. The current Gross Margin % is 38.71%, which is 11% above median its 10-year median of 34.78 and 49.1% above the Conglomerates industry median of 25.96. Honeywell International's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Honeywell International (STU:ALD), the current Gross Margin % is 38.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Honeywell International (STU:ALD) Overvalued in 2026?
Based on GuruFocus' analysis, Honeywell International stock appears to be overvalued.
The current stock price of €408.70 is trading 110.6% above its estimated GF Value™ of €194.03.
GuruFocus considers Honeywell International to be Significantly Overvalued.
Key valuation signals for STU:ALD:
Gross Margin %: 38.71% (11% above median its 10-year median of 34.78)
GF Value™: €194.03 vs. price of €408.70 (110.6% above fair value)
Industry Position: 49.1% above the Conglomerates median (#141 of 511)
No single metric tells the full story. See the STU:ALD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honeywell traces its roots to 1885 with Albert Butz's firm, Butz Thermo-Electric Regulator, which produced a predecessor to the modern thermostat. Other inventions by Honeywell include biodegradable detergent and autopilot. Today, Honeywell is a global multi-industry behemoth with one of the largest installed bases of equipment. It operates through four business segments: aerospace technologies, industrial automation, energy and sustainability solutions, and building automation. Recently, Honeywell has made several portfolio changes to focus on fewer end markets and align with a set of secular growth trends. The firm is working diligently to expand its installed base, deriving around one third of its revenue from recurring aftermarket services.
71GF Score
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