HALEON PLC-ADR (HLN) Stock Fundamental Analysis
NYSE:HLN - US4055521003 - ADR
9.76 USD
-0.04 (-0.41%)
9.76 USD
0 (0%)
Overall HLN gets a fundamental rating of 5 out of 10. We evaluated HLN against 195 industry peers in the Pharmaceuticals industry. HLN scores excellent on profitability, but there are some minor concerns on its financial health. HLN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HLN was profitable.
HLN had a positive operating cash flow in the past year.
Each year in the past 5 years HLN has been profitable.
HLN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLN has a better Return On Assets (4.20%) than 86.67% of its industry peers.
With an excellent Return On Equity value of 8.92%, HLN belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.11%, HLN belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HLN is significantly below the industry average of 15.28%.
| 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
The Profit Margin of HLN (12.84%) is better than 87.69% of its industry peers.
HLN's Profit Margin has improved in the last couple of years.
HLN has a better Operating Margin (21.31%) than 88.21% of its industry peers.
In the last couple of years the Operating Margin of HLN has grown nicely.
Looking at the Gross Margin, with a value of 60.75%, HLN is in the better half of 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.
HLN has less shares outstanding than it did 1 year ago.
HLN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.28 indicates that HLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, HLN is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
HLN has a debt to FCF ratio of 5.11. This is a neutral value as HLN would need 5.11 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.11, HLN belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that HLN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, HLN is not doing good in the industry: 62.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.76
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.98 indicates that HLN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, HLN is doing worse than 82.05% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that HLN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, HLN is doing worse than 81.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
HLN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
Measured over the past years, HLN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.56% on average per year.
The Revenue has decreased by -0.61% in the past year.
The Revenue has been growing slightly by 5.78% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y5.64%
EPS Next 2Y7.39%
EPS Next 3Y8.19%
EPS Next 5Y8.57%
Revenue Next Year-1.45%
Revenue Next 2Y1.35%
Revenue Next 3Y2.42%
Revenue Next 5Y3.42%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.52, which indicates a rather expensive current valuation of HLN.
Based on the Price/Earnings ratio, HLN is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HLN to the average of the S&P500 Index (26.90), we can say HLN is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.07, which indicates a rather expensive current valuation of HLN.
Based on the Price/Forward Earnings ratio, HLN is valued a bit cheaper than the industry average as 77.95% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.52. HLN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
82.56% of the companies in the same industry are more expensive than HLN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HLN is valued cheaply inside the industry as 85.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HLN may justify a higher PE ratio.
PEG (NY)3.46
PEG (5Y)1.11
EPS Next 2Y7.39%
EPS Next 3Y8.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.89%, HLN has a reasonable but not impressive dividend return.
HLN's Dividend Yield is rather good when compared to the industry average which is at 5.73. HLN pays more dividend than 91.28% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, HLN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
HLN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HLN decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.53% of the earnings are spent on dividend by HLN. This is a low number and sustainable payout ratio.
DP39.53%
EPS Next 2Y7.39%
EPS Next 3Y8.19%
9.76
-0.04 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners56.28%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap43.75B
Analysts79.23
Price Target11.6 (18.85%)
Short Float %0.46%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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)-1.11%
PT rev (3m)1.19%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)-2.93%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 17.07 | ||
| P/S | 2.88 | ||
| P/FCF | 16.31 | ||
| P/OCF | 14.06 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.85 |
EPS(TTM)0.5
EY5.12%
EPS(NY)0.57
Fwd EY5.86%
FCF(TTM)0.6
FCFY6.13%
OCF(TTM)0.69
OCFY7.11%
SpS3.39
BVpS4.88
TBVpS-3.03
PEG (NY)3.46
PEG (5Y)1.11
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 | 2.28 |
F-Score6
WACC8.03%
ROIC/WACC0.76
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 Y5.64%
EPS Next 2Y7.39%
EPS Next 3Y8.19%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-5.33%
Revenue Next Year-1.45%
Revenue Next 2Y1.35%
Revenue Next 3Y2.42%
Revenue Next 5Y3.42%
EBIT growth 1Y4.68%
EBIT growth 3Y5.1%
EBIT growth 5Y9.75%
EBIT Next Year13.76%
EBIT Next 3Y8.96%
EBIT Next 5Y7.59%
FCF growth 1Y12.42%
FCF growth 3Y23.3%
FCF growth 5Y29.57%
OCF growth 1Y9.57%
OCF growth 3Y19.28%
OCF growth 5Y23.96%