Honeywell InternationalSTU:ALD +0.49%71 Altman Z-Score is 3.37 as of Jun. 29, 2026, which is 33% below its 10-year median of 5.05. 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 544 Conglomerates companies, Honeywell International ranks better than 74.82% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.35 is strong.
Honeywell International has a Altman Z-Score of 3.37, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Honeywell International's Altman Z-Score or its related term are showing as below:
STU:ALD'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.35 Med: 5.05 Max: 5.68
Current: 3.35
During the past 13 years, Honeywell International's highest Altman Z-Score was 5.68. The lowest was 3.35. And the median was 5.05.
Honeywell International (STU:ALD) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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: Altman Z-Score Comparison
For the Conglomerates subindustry, Honeywell International's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Honeywell International's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Honeywell International's Altman Z-Score falls into.
Honeywell International Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Honeywell International (STU:ALD) has a Altman Z-Score of 3.37 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Honeywell International and its competitors. This is 33% below median its historical median of 5.05. Over the past decade, Honeywell International's Altman Z-Score has ranged from 3.35 to 5.68. According to the industry distribution chart, Honeywell International ranks #137 out of 544 companies in the Conglomerates industry, placing it in the top 25.2%.
Is Honeywell International's Altman Z-Score too high?
Honeywell International's current Altman Z-Score of 3.37 is 33% below median its 10-year median of 5.05. Over the past 10 years, this metric has ranged from a low of 3.35 to a high of 5.68. The Conglomerates industry median Altman Z-Score is 2.06. Honeywell International's value of 3.37 is 63.6% above this industry median. Based on the distribution chart, Honeywell International ranks #137 out of 544 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 Altman Z-Score compare to MMM and VMI?
According to the Conglomerates industry distribution chart, Honeywell International ranks #137 out of 544 companies for Altman Z-Score. This puts Honeywell International in the upper half of its industry. The industry median Altman Z-Score is 2.06. Honeywell International's value of 3.37 is 63.6% above this benchmark. Historically, Honeywell International's own Altman Z-Score has ranged from 3.35 to 5.68 over the past decade. While the company's 10-year median is 5.05 vs. the industry median of 2.06, 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 Altman Z-Score for a Conglomerates company?
The median Altman Z-Score among Conglomerates companies is 2.06, based on 544 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honeywell International's current Altman Z-Score of 3.37 is 63.6% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Honeywell International and its competitors. For the Conglomerates industry, the median Altman Z-Score is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell International's current Altman Z-Score is 3.37, which is 33% below median its own 10-year median of 5.05. 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 Altman Z-Score is 3.37, which is 33% below median its 10-year median of 5.05 and 63.6% above the Conglomerates industry median of 2.06. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Honeywell International (STU:ALD), the current Altman Z-Score is 3.37 as of Jun. 29, 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:
Altman Z-Score: 3.37 (33% below median its 10-year median of 5.05)
GF Value™: €194.03 vs. price of €408.70 (110.6% above fair value)
Industry Position: 63.6% above the Conglomerates median (#137 of 544)
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.
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