HALEON PLC-ADR (HLN) Stock Fundamental Analysis
USA - NYSE:HLN - US4055521003 - ADR
9.2 USD
+0.01 (+0.11%)
9.3 USD
+0.1 (+1.09%)
Overall HLN gets a fundamental rating of 5 out of 10. We evaluated HLN against 195 industry peers in the Pharmaceuticals industry. While HLN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HLN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HLN had positive earnings in the past year.
In the past year HLN had a positive cash flow from operations.
In the past 5 years HLN has always been profitable.
Each year in the past 5 years HLN had a positive operating cash flow.
1.2 Ratios
HLN has a Return On Assets of 4.20%. This is amongst the best in the industry. HLN outperforms 87.18% of its industry peers.
HLN's Return On Equity of 8.92% is amongst the best of the industry. HLN outperforms 87.18% of its industry peers.
HLN has a Return On Invested Capital of 6.11%. This is amongst the best in the industry. HLN outperforms 83.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLN is significantly below the industry average of 15.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 8.92% | ||
| ROIC | 6.11% |
ROA(3y)3.44%
ROA(5y)3.54%
ROE(3y)7.24%
ROE(5y)6.28%
ROIC(3y)6.15%
ROIC(5y)5.77%
1.3 Margins
Looking at the Profit Margin, with a value of 12.84%, HLN belongs to the top of the industry, outperforming 88.21% of the companies in the same industry.
In the last couple of years the Profit Margin of HLN has grown nicely.
HLN has a Operating Margin of 21.31%. This is amongst the best in the industry. HLN outperforms 88.21% of its industry peers.
In the last couple of years the Operating Margin of HLN has grown nicely.
With a decent Gross Margin value of 60.75%, HLN is doing good in the industry, outperforming 67.69% of the companies in the same industry.
In the last couple of years the Gross Margin of HLN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.31% | ||
| PM (TTM) | 12.84% | ||
| GM | 60.75% |
OM growth 3Y-0.45%
OM growth 5Y3.75%
PM growth 3Y-4.12%
PM growth 5Y10.69%
GM growth 3Y0.43%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLN is destroying value.
The number of shares outstanding for HLN has been reduced compared to 1 year ago.
Compared to 5 years ago, HLN has less shares outstanding
HLN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.22 indicates that HLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLN has a better Altman-Z score (2.22) than 67.18% of its industry peers.
The Debt to FCF ratio of HLN is 5.11, which is a neutral value as it means it would take HLN, 5.11 years of fcf income to pay off all of its debts.
HLN has a Debt to FCF ratio of 5.11. This is amongst the best in the industry. HLN outperforms 82.56% of its industry peers.
HLN has a Debt/Equity ratio of 0.53. This is a neutral value indicating HLN is somewhat dependend on debt financing.
HLN's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. HLN is outperformed by 62.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.75
WACC8.18%
2.3 Liquidity
HLN has a Current Ratio of 0.98. This is a bad value and indicates that HLN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.98, HLN is not doing good in the industry: 81.54% of the companies in the same industry are doing better.
HLN has a Quick Ratio of 0.98. This is a bad value and indicates that HLN is not financially healthy enough and could expect problems in meeting its short term obligations.
HLN has a Quick ratio of 0.78. This is amonst the worse of the industry: HLN underperforms 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% over the past year.
The Earnings Per Share has been growing by 17.56% on average over the past years. This is quite good.
HLN shows a decrease in Revenue. In the last year, the revenue decreased by -0.61%.
Measured over the past years, HLN shows a small growth in Revenue. The Revenue has been growing by 5.78% on average per year.
EPS 1Y (TTM)6.59%
EPS 3Y1.58%
EPS 5Y17.56%
EPS Q2Q%N/A
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-5.33%
3.2 Future
HLN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.41% yearly.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y5.23%
EPS Next 2Y7.25%
EPS Next 3Y8.26%
EPS Next 5Y8.41%
Revenue Next Year-1.7%
Revenue Next 2Y1.17%
Revenue Next 3Y2.29%
Revenue Next 5Y3.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.40 indicates a rather expensive valuation of HLN.
Based on the Price/Earnings ratio, HLN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.29, HLN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.15, the valuation of HLN can be described as correct.
Based on the Price/Forward Earnings ratio, HLN is valued a bit cheaper than 78.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLN to the average of the S&P500 Index (22.85), we can say HLN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
83.59% of the companies in the same industry are more expensive than HLN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLN indicates a rather cheap valuation: HLN is cheaper than 85.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.39 | ||
| EV/EBITDA | 14.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HLN may justify a higher PE ratio.
PEG (NY)3.52
PEG (5Y)1.05
EPS Next 2Y7.25%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
HLN has a Yearly Dividend Yield of 2.00%.
HLN's Dividend Yield is rather good when compared to the industry average which is at 6.60. HLN pays more dividend than 91.79% of the companies in the same industry.
HLN's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
HLN has been paying a dividend for at least 10 years, so it has a reliable track record.
HLN has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HLN pays out 39.53% of its income as dividend. This is a sustainable payout ratio.
DP39.53%
EPS Next 2Y7.25%
EPS Next 3Y8.26%
9.2
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners56.78%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap40.98B
Analysts78.46
Price Target11.5 (25%)
Short Float %0.35%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP39.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.58%
Min EPS beat(2)-1.92%
Max EPS beat(2)7.08%
EPS beat(4)3
Avg EPS beat(4)3.76%
Min EPS beat(4)-1.92%
Max EPS beat(4)7.54%
EPS beat(8)4
Avg EPS beat(8)-10.37%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.51%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)-1.64%
Revenue beat(8)1
Avg Revenue beat(8)-2.55%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.87%
PT rev (3m)-4.32%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.15 | ||
| P/S | 2.72 | ||
| P/FCF | 15.39 | ||
| P/OCF | 13.27 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.13 |
EPS(TTM)0.5
EY5.43%
EPS(NY)0.57
Fwd EY6.19%
FCF(TTM)0.6
FCFY6.5%
OCF(TTM)0.69
OCFY7.54%
SpS3.39
BVpS4.87
TBVpS-3.03
PEG (NY)3.52
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 8.92% | ||
| ROCE | 8.4% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 4145.85% | ||
| OM | 21.31% | ||
| PM (TTM) | 12.84% | ||
| GM | 60.75% | ||
| FCFM | 17.65% |
ROA(3y)3.44%
ROA(5y)3.54%
ROE(3y)7.24%
ROE(5y)6.28%
ROIC(3y)6.15%
ROIC(5y)5.77%
ROICexc(3y)6.57%
ROICexc(5y)6.04%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)8.5%
ROCE(5y)8.01%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y12.56%
ROICexc growth 5Y14.99%
OM growth 3Y-0.45%
OM growth 5Y3.75%
PM growth 3Y-4.12%
PM growth 5Y10.69%
GM growth 3Y0.43%
GM growth 5Y0.58%
F-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 98.15% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 6.65 | ||
| Cash Conversion | 84.66% | ||
| Profit Quality | 137.52% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.22 |
F-Score6
WACC8.18%
ROIC/WACC0.75
Cap/Depr(3y)107.06%
Cap/Depr(5y)107.33%
Cap/Sales(3y)2.94%
Cap/Sales(5y)3.03%
Profit Quality(3y)156.45%
Profit Quality(5y)128.12%
High Growth Momentum
Growth
EPS 1Y (TTM)6.59%
EPS 3Y1.58%
EPS 5Y17.56%
EPS Q2Q%N/A
EPS Next Y5.23%
EPS Next 2Y7.25%
EPS Next 3Y8.26%
EPS Next 5Y8.41%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-5.33%
Revenue Next Year-1.7%
Revenue Next 2Y1.17%
Revenue Next 3Y2.29%
Revenue Next 5Y3.34%
EBIT growth 1Y4.68%
EBIT growth 3Y5.1%
EBIT growth 5Y9.75%
EBIT Next Year11.73%
EBIT Next 3Y8.25%
EBIT Next 5Y7.5%
FCF growth 1Y12.42%
FCF growth 3Y23.3%
FCF growth 5Y29.57%
OCF growth 1Y9.57%
OCF growth 3Y19.28%
OCF growth 5Y23.96%