5-Star Honeywell’s (HON) best-in-class cyber governance is driven by its strong financials, rock-solid balance sheet and above average cybersecurity. It is a case of a very well-managed company that is also managing its cyber governance at a high level. HON management has placed its digital transformation strategy front and center, and this translates through to its financials, helping improve cashflow and margin expansion. This helps propel Cyberhedge 4 and 5-Star rated companies like Honeywell to consistent outperformance against lower rated peers like GE and the broader market, especially in times of market volatility.
Why does cyber governance matter?
Honeywell management has placed its digital transformation strategy front and center, and this translates through to its financials, helping improve cashflow and margin expansion. Digital is core to all of Honeywell industry verticals.
What does the company need to do moving forward?
Honeywell is outperforming peers through the COVID‑19 challenges, in line with 4-5 Star companies that were also well positioned heading into the crisis. This is a trend that is likely to continue if the company maintains its best-in-class cyber governance performance.