Investment thesis
Honeywell International (HON) is a high-quality industrial, led by a diverse and young management team. The company has a good mix of cyclical and non-cyclical segments and is diversified geographically. Over the past 10 years, its top-line has been growing consistently at the inflation rate -- nothing sexy but what it has done very well is as it scales it has expanded the operating margins from 9.7% to current 17.6%. Its free cash flow has also doubled over the same period. It’s a solid achievement considering their leverage ratio barely budged.