Morningstar Rating

Stock Research and Analysis

by Barbara Noverini

Bulls Say

Honeywell's focus on software-based innovation in recent years will continue to enhance the utility of its products and services, leading to greater customer reliance on a comprehensive suite of system solutions.
Honeywell's proprietary internal efficiency system has led to impressive margin expansion over the years.
Honeywell's leading market position in aerospace control and safety systems should allow the company to benefit from the commercial aircraft upcycle. Read more 

Bears Say

It may be difficult to replicate the dramatic improvement in operating margins achieved by the initial roll out of the Honeywell Operating System.
Acquisitions at attractive valuations remain elusive in this environment, and slowing global growth may impair Honeywell's ability to materially grow the top line on an organic basis.
Honeywell's process automation business is likely to underperform in the near term because of significant exposure to the oil and gas sector, muting any benefit of the Solstice product launch in the PMT segment. Read more 

Management

CEO and Chairman David Cote, who took the reins in 2002, is largely credited with reinvigorating Honeywell's culture, aligning employee incentives with shareholders', and executing the company's comprehensive turnaround. Cote gained experience as CEO   Read more 

Profile

Honeywell is a diversified industrial manufacturer that operates three main business segments: aerospace, automation and controls, and performance materials. The company   Read more 

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