Honeywell InternationalSTU:ALD +0.49%71 Interest Coverage is 4.88 as of Mar. 2026, which is 71% below its 10-year median of 16.89. 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 427 Conglomerates companies, Honeywell International ranks worse than 56.91% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Honeywell International's
Operating Income
for the
three
months ended in Mar. 2026 was €1,503 Mil. Honeywell International's Interest Expense for the
three
months ended in Mar. 2026 was €-308 Mil.
Honeywell International's interest coverage for the quarter that ended in Mar. 2026 was 4.88.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Honeywell International's Interest Coverage or its related term are showing as below:
STU:ALD'
s Interest Coverage Range Over the Past 10 Years
Min: 4.47 Med: 16.89 Max: 19.95
Current: 4.47
STU:ALD's Interest Coverage is ranked worse than 56.91% of 427
companies
in the Conglomerates industry
Industry Median: 5.29
vs STU:ALD: 4.47
Honeywell International (STU:ALD) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Honeywell International Interest Coverage Related Terms
Honeywell International Interest Coverage Historical Data
* Premium members only.
The historical data trend for Honeywell International's Interest Coverage can be seen below:
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:ALD vs MMM, VMI, SEB: Interest Coverage Comparison
For the Conglomerates subindustry, Honeywell International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Honeywell International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Honeywell International's Interest Coverage falls into.
Honeywell International Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Honeywell International (STU:ALD) has a Interest Coverage of 4.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Honeywell International and its competitors. This is 71% below median its historical median of 16.89. Over the past decade, Honeywell International's Interest Coverage has ranged from 4.47 to 19.95. According to the industry distribution chart, Honeywell International ranks #243 out of 427 companies in the Conglomerates industry, placing it in the top 56.9%.
Is Honeywell International's Interest Coverage too high?
Honeywell International's current Interest Coverage of 4.88 is 71% below median its 10-year median of 16.89. Over the past 10 years, this metric has ranged from a low of 4.47 to a high of 19.95. The Conglomerates industry median Interest Coverage is 5.29. Honeywell International's value of 4.88 is 7.8% below this industry median. Based on the distribution chart, Honeywell International ranks #243 out of 427 companies in the Conglomerates industry, which is below 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 Interest Coverage compare to MMM and VMI?
According to the Conglomerates industry distribution chart, Honeywell International ranks #243 out of 427 companies for Interest Coverage. This places Honeywell International in the lower half of its industry. The industry median Interest Coverage is 5.29. Honeywell International's value of 4.88 is 7.8% below this benchmark. Historically, Honeywell International's own Interest Coverage has ranged from 4.47 to 19.95 over the past decade. While the company's 10-year median is 16.89 vs. the industry median of 5.29, Honeywell International has consistently been below 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 Interest Coverage for a Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.29, based on 427 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honeywell International's current Interest Coverage of 4.88 is 7.8% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Honeywell International and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell International's current Interest Coverage is 4.88, which is 71% below median its own 10-year median of 16.89. 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 Interest Coverage is 4.88, which is 71% below median its 10-year median of 16.89 and 7.8% below the Conglomerates industry median of 5.29. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Honeywell International (STU:ALD), the current Interest Coverage is 4.88 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:
Interest Coverage: 4.88 (71% below median its 10-year median of 16.89)
GF Value™: €194.03 vs. price of €408.70 (110.6% above fair value)
Industry Position: 7.8% below the Conglomerates median (#243 of 427)
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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