Is HONEYWELL INTERNATIONAL INC (HON) Halal?

NASDAQ Industrials United States $141.8B
✓ HALAL
Confidence: 95/100
HONEYWELL INTERNATIONAL INC (HON) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 20.3% against the AAOIFI threshold of 30%, HONEYWELL INTERNATIONAL INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Conglomerates), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 20.3%
/ 30%
6.9%
/ 30%
4.9%
/ 30%
1.11%
/ 5%
✓ HALAL
DJIM 20.3%
/ 33%
6.9%
/ 33%
4.9%
/ 33%
1.11%
/ 5%
✓ HALAL
MSCI 42.9%
/ 33%
14.6%
/ 33%
10.4%
/ 33%
1.11%
/ 5%
✗ NOT HALAL
S&P 20.3%
/ 33%
6.9%
/ 33%
4.9%
/ 33%
1.11%
/ 5%
✓ HALAL
FTSE 42.9%
/ 33%
14.6%
/ 33%
10.4%
/ 50%
1.11%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
32.1
Forward: 19.4
EPS
$6.94
Dividend Yield
213.0%
Payout: 66.0%
P/B Ratio
10.2
EV/EBITDA
19.6
EV: $165.6B
Revenue
$37.4B
Growth: -3.3%
Beta
0.9
Average volatility
Current Ratio
1.3

Profitability

Gross Margin 36.9%
Operating Margin 15.4%
Net Margin 12.6%
Return on Equity (ROE) 26.1%
Return on Assets (ROA) 5.9%

Cash Flow & Balance Sheet

Operating Cash Flow$6.4B
Free Cash Flow$5.4B
Total Debt$35.6B
Debt-to-Equity236.6
Current Ratio1.3
Total Assets$73.7B

Price & Trading

Last Close$225.17
50-Day MA$232.86
200-Day MA$210.68
Avg Volume4.2M
Beta0.9
52-Week Range
$169.05
$248.18

About HONEYWELL INTERNATIONAL INC (HON)

CEO
Mr. Vimal M. Kapur
Employees
101,000
Sector
Industrials
Industry
Conglomerates
Country
United States
Exchange
NASDAQ
Market Cap
$141.8B
Currency
USD

Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally. The company's Aerospace Technologies segment offers auxiliary power units, propulsion engines, integrated avionics, connectivity services, electric power systems, management and technical services, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; thermal systems; and spare parts; repair, overhaul, and maintenance services. Its Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies with custom-engineered sensors and services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. Its Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrade of systems. The company's Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions; as well as connectivity, data integration and software solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

Purification Calculator

As a halal stock with 1.11% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is HONEYWELL INTERNATIONAL INC (HON) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), HONEYWELL INTERNATIONAL INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is HONEYWELL INTERNATIONAL INC's debt ratio?

HONEYWELL INTERNATIONAL INC's debt ratio is 20.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 42.9%.

Does HONEYWELL INTERNATIONAL INC require dividend purification?

Yes, HONEYWELL INTERNATIONAL INC has an impermissible income ratio of 1.11%, which means 1.11% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are HONEYWELL INTERNATIONAL INC's key financial metrics?

HONEYWELL INTERNATIONAL INC has a market capitalization of $141.8B, trailing P/E ratio of 32.1, and revenue of $37.4B. The company maintains a gross margin of 36.9% and a net margin of 12.6%. Return on equity stands at 26.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.