HALEON PLC-ADR (HLN) Stock Fundamental Analysis
NYSE:HLN - New York Stock Exchange, Inc. - US4055521003 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to HLN. HLN was compared to 194 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.
HLN had a positive operating cash flow in the past year.
HLN had positive earnings in each of the past 5 years.
Each year in the past 5 years HLN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HLN (4.20%) is better than 87.11% of its industry peers.
Looking at the Return On Equity, with a value of 8.92%, HLN belongs to the top of the industry, outperforming 87.11% of the companies in the same industry.
HLN's Return On Invested Capital of 6.11% is amongst the best of the industry. HLN outperforms 84.02% of its industry peers.
HLN had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 14.87%.
| 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
With an excellent Profit Margin value of 12.84%, HLN belongs to the best of the industry, outperforming 89.69% of the companies in the same industry.
In the last couple of years the Profit Margin of HLN has grown nicely.
With an excellent Operating Margin value of 21.31%, HLN belongs to the best of the industry, outperforming 87.11% of the companies in the same industry.
In the last couple of years the Operating Margin of HLN has grown nicely.
HLN has a better Gross Margin (60.75%) than 70.10% of its industry peers.
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
HLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HLN has been reduced compared to 1 year ago.
The number of shares outstanding for HLN has been reduced compared to 5 years ago.
Compared to 1 year ago, HLN has a worse debt to assets ratio.
2.2 Solvency
HLN has an Altman-Z score of 2.28. This is not the best score and indicates that HLN is in the grey zone with still only limited risk for bankruptcy at the moment.
HLN's Altman-Z score of 2.28 is fine compared to the rest of the industry. HLN outperforms 68.56% of its industry peers.
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.
HLN's Debt to FCF ratio of 5.11 is amongst the best of the industry. HLN outperforms 83.51% 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.
Looking at the Debt to Equity ratio, with a value of 0.53, HLN is doing worse than 61.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.77
WACC7.97%
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.
HLN has a worse Current ratio (0.98) than 83.51% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.78, HLN is doing worse than 83.51% of the companies in the same industry.
| 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.
HLN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.56% yearly.
The Revenue has decreased by -0.61% in the past year.
HLN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.78% yearly.
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%-2.26%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
HLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y9.06%
EPS Next 2Y8.99%
EPS Next 3Y8.81%
EPS Next 5Y8.34%
Revenue Next Year0.74%
Revenue Next 2Y2.54%
Revenue Next 3Y3.21%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 19.67, the valuation of HLN can be described as rather expensive.
HLN's Price/Earnings ratio is rather cheap when compared to the industry. HLN is cheaper than 82.99% of the companies in the same industry.
HLN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.61.
The Price/Forward Earnings ratio is 16.60, which indicates a correct valuation of HLN.
Based on the Price/Forward Earnings ratio, HLN is valued a bit cheaper than 76.80% of the companies in the same industry.
HLN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLN is valued cheaper than 81.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLN is valued cheaply inside the industry as 86.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.33 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HLN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)1.12
EPS Next 2Y8.99%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
HLN has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.99, HLN pays a better dividend. On top of this HLN pays more dividend than 91.75% of the companies listed in the same industry.
HLN's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
DPN/A
EPS Next 2Y8.99%
EPS Next 3Y8.81%
9.64
-0.17 (-1.73%)
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 Cap43.30B
Analysts78.46
Price Target11.73 (21.68%)
Short Float %0.49%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
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)-2.41%
PT rev (3m)2.32%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 16.6 | ||
| P/S | 2.88 | ||
| P/FCF | 16.33 | ||
| P/OCF | 14.08 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.82 |
EPS(TTM)0.49
EY5.08%
EPS(NY)0.58
Fwd EY6.02%
FCF(TTM)0.59
FCFY6.12%
OCF(TTM)0.68
OCFY7.1%
SpS3.34
BVpS4.81
TBVpS-2.99
PEG (NY)2.17
PEG (5Y)1.12
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
WACC7.97%
ROIC/WACC0.77
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 Y9.06%
EPS Next 2Y8.99%
EPS Next 3Y8.81%
EPS Next 5Y8.34%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-2.26%
Revenue Next Year0.74%
Revenue Next 2Y2.54%
Revenue Next 3Y3.21%
Revenue Next 5Y3.41%
EBIT growth 1Y4.68%
EBIT growth 3Y5.1%
EBIT growth 5Y9.75%
EBIT Next Year13.76%
EBIT Next 3Y8.96%
EBIT Next 5Y6.64%
FCF growth 1Y12.42%
FCF growth 3Y23.3%
FCF growth 5Y29.57%
OCF growth 1Y9.57%
OCF growth 3Y19.28%
OCF growth 5Y23.96%