Honeywell InternationalWBO:HON -2.09%79 Operating Margin % is 19.00% as of Mar. 2026, which is 7% above its 10-year median of 17.79. GuruFocus rates WBO:HON with a GF Score™ of 79/100 and a GF Value™ of €195.69 (Fairly Valued). The stock has 6 warning signs investors should review. Among 545 Conglomerates companies, Honeywell International ranks better than 84.77% on this metric.
Honeywell International (WBO:HON) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Honeywell International Operating Margin % Related Terms
Honeywell International Operating Margin % Historical Data
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The historical data trend for Honeywell International's Operating Margin % 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.
WBO:HON vs MMM, VMI, SEB: Operating Margin % Comparison
For the Conglomerates subindustry, Honeywell International's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Honeywell International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Honeywell International's Operating Margin % falls into.
Honeywell International Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Honeywell International's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (WBO:HON) has a Operating Margin % of 19.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Honeywell International and its competitors. This is near median its historical median of 17.79. Over the past decade, Honeywell International's Operating Margin % has ranged from 15.40 to 19.21. According to the industry distribution chart, Honeywell International ranks #83 out of 545 companies in the Conglomerates industry, placing it in the top 15.2%.
Is Honeywell International's Operating Margin % too high?
Honeywell International's current Operating Margin % of 19.00% is near median its 10-year median of 17.79. Over the past 10 years, this metric has ranged from a low of 15.40 to a high of 19.21. The Conglomerates industry median Operating Margin % is 5.93. Honeywell International's value of 19.00% is 220.4% above this industry median. Based on the distribution chart, Honeywell International ranks #83 out of 545 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Honeywell International has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Honeywell International's Operating Margin % compare to MMM and VMI?
According to the Conglomerates industry distribution chart, Honeywell International ranks #83 out of 545 companies for Operating Margin %. This places Honeywell International in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.93. Honeywell International's value of 19.00% is 220.4% above this benchmark. Historically, Honeywell International's own Operating Margin % has ranged from 15.40 to 19.21 over the past decade. While the company's 10-year median is 17.79 vs. the industry median of 5.93, 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 Operating Margin % for a Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honeywell International's current Operating Margin % of 19.00% is 220.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Honeywell International and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell International's current Operating Margin % is 19.00%, which is near median its own 10-year median of 17.79. 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 (WBO:HON) is currently considered Fairly Valued. The stock's GF Value™ is €195.69, compared to a current price of €197.48 — trading 0.9% above its estimated fair value. The current Operating Margin % is 19.00%, which is near median its 10-year median of 17.79 and 220.4% above the Conglomerates industry median of 5.93. Honeywell International's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Honeywell International (WBO:HON), the current Operating Margin % is 19.00% 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 (WBO:HON) Overvalued in 2026?
Based on GuruFocus' analysis, Honeywell International stock appears to be overvalued.
The current stock price of €197.48 is trading 0.9% above its estimated GF Value™ of €195.69.
GuruFocus considers Honeywell International to be Fairly Valued.
Key valuation signals for WBO:HON:
Operating Margin %: 19.00% (near median its 10-year median of 17.79)
GF Value™: €195.69 vs. price of €197.48 (0.9% above fair value)
Industry Position: 220.4% above the Conglomerates median (#83 of 545)
No single metric tells the full story. See the WBO:HON 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.
79GF Score
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