HALEON PLC (H6D0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:H6D0 - GB00BMX86B70 - Common Stock
4.412 EUR
+0.03 (+0.78%)
We assign a fundamental rating of 3 out of 10 to H6D0. H6D0 was compared to 55 industry peers in the Pharmaceuticals industry. While H6D0 is still in line with the averages on profitability rating, there are concerns on its financial health. H6D0 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 H6D0 was profitable.
- H6D0 had a positive operating cash flow in the past year.
- In the past 5 years H6D0 has always been profitable.
- In the past 5 years H6D0 always reported a positive cash flow from operatings.
1.2 Ratios
- H6D0 has a Return On Assets of 4.20%. This is in the lower half of the industry: H6D0 underperforms 60.00% of its industry peers.
- H6D0 has a Return On Equity (8.92%) which is in line with its industry peers.
- H6D0's Return On Invested Capital of 6.11% is in line compared to the rest of the industry. H6D0 outperforms 41.82% of its industry peers.
- H6D0 had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 14.00%.
| 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%, H6D0 is in line with its industry, outperforming 52.73% of the companies in the same industry.
- H6D0's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 21.31%, H6D0 perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
- In the last couple of years the Operating Margin of H6D0 has grown nicely.
- H6D0's Gross Margin of 60.75% is on the low side compared to the rest of the industry. H6D0 is outperformed by 63.64% of its industry peers.
- In the last couple of years the Gross Margin of H6D0 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 H6D0 is destroying value.
- H6D0 has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for H6D0 has been reduced compared to 5 years ago.
- Compared to 1 year ago, H6D0 has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.77, we must say that H6D0 is in the distress zone and has some risk of bankruptcy.
- H6D0's Altman-Z score of 1.77 is on the low side compared to the rest of the industry. H6D0 is outperformed by 65.45% of its industry peers.
- The Debt to FCF ratio of H6D0 is 5.11, which is a neutral value as it means it would take H6D0, 5.11 years of fcf income to pay off all of its debts.
- H6D0 has a Debt to FCF ratio of 5.11. This is comparable to the rest of the industry: H6D0 outperforms 58.18% of its industry peers.
- H6D0 has a Debt/Equity ratio of 0.53. This is a neutral value indicating H6D0 is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.53, H6D0 is doing good in the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.79
WACC7.77%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that H6D0 may have some problems paying its short term obligations.
- H6D0's Current ratio of 0.98 is on the low side compared to the rest of the industry. H6D0 is outperformed by 74.55% of its industry peers.
- A Quick Ratio of 0.78 indicates that H6D0 may have some problems paying its short term obligations.
- H6D0 has a worse Quick ratio (0.78) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- H6D0 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
- Measured over the past years, H6D0 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.56% on average per year.
- H6D0 shows a decrease in Revenue. In the last year, the revenue decreased by -0.61%.
- H6D0 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%0.68%
3.2 Future
- Based on estimates for the next years, H6D0 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.56% on average per year.
- The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y5.72%
EPS Next 2Y7.77%
EPS Next 3Y8.45%
EPS Next 5Y9.56%
Revenue Next Year-1.32%
Revenue Next 2Y1.63%
Revenue Next 3Y2.58%
Revenue Next 5Y3.25%
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
- A Price/Earnings ratio of 21.01 indicates a rather expensive valuation of H6D0.
- The rest of the industry has a similar Price/Earnings ratio as H6D0.
- The average S&P500 Price/Earnings ratio is at 27.21. H6D0 is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 18.42, which indicates a rather expensive current valuation of H6D0.
- H6D0's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. H6D0 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than H6D0, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, H6D0 is valued cheaply inside the industry as 94.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 9.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates H6D0 does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.68
PEG (5Y)1.2
EPS Next 2Y7.77%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
- H6D0 has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.62, H6D0 pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, H6D0 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- H6D0 pays out 39.53% of its income as dividend. This is a sustainable payout ratio.
DP39.53%
EPS Next 2Y7.77%
EPS Next 3Y8.45%
HALEON PLC / H6D0.DE FAQ
Can you provide the ChartMill fundamental rating for HALEON PLC?
ChartMill assigns a fundamental rating of 4 / 10 to H6D0.DE.
Can you provide the valuation status for HALEON PLC?
ChartMill assigns a valuation rating of 4 / 10 to HALEON PLC (H6D0.DE). This can be considered as Fairly Valued.
How profitable is HALEON PLC (H6D0.DE) stock?
HALEON PLC (H6D0.DE) has a profitability rating of 5 / 10.
Can you provide the financial health for H6D0 stock?
The financial health rating of HALEON PLC (H6D0.DE) is 2 / 10.
How sustainable is the dividend of HALEON PLC (H6D0.DE) stock?
The dividend rating of HALEON PLC (H6D0.DE) is 4 / 10 and the dividend payout ratio is 39.53%.