HALEON PLC (H6D0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:H6D0 - GB00BMX86B70 - Common Stock
4.355 EUR
-0.02 (-0.48%)
Taking everything into account, H6D0 scores 3 out of 10 in our fundamental rating. H6D0 was compared to 55 industry peers in the Pharmaceuticals industry. H6D0 has a medium profitability rating, but doesn't score so well on its financial health evaluation. H6D0 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- H6D0 had positive earnings in the past year.
- H6D0 had a positive operating cash flow in the past year.
- H6D0 had positive earnings in each of the past 5 years.
- H6D0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- H6D0's Return On Assets of 4.20% is on the low side compared to the rest of the industry. H6D0 is outperformed by 60.00% of its industry peers.
- The Return On Equity of H6D0 (8.92%) is comparable to the rest of the industry.
- H6D0 has a Return On Invested Capital (6.11%) which is comparable to the rest of the industry.
- 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
- The Profit Margin of H6D0 (12.84%) is comparable to the rest of the industry.
- H6D0's Profit Margin has improved in the last couple of years.
- The Operating Margin of H6D0 (21.31%) is comparable to the rest of the industry.
- H6D0's Operating Margin has improved in the last couple of years.
- H6D0 has a worse Gross Margin (60.75%) than 63.64% of its industry peers.
- H6D0's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), H6D0 is destroying value.
- The number of shares outstanding for H6D0 has been reduced compared to 1 year ago.
- The number of shares outstanding for H6D0 has been reduced compared to 5 years ago.
- The debt/assets ratio for H6D0 is higher compared to a year ago.
2.2 Solvency
- H6D0 has an Altman-Z score of 1.77. This is a bad value and indicates that H6D0 is not financially healthy and even has some risk of bankruptcy.
- H6D0 has a worse Altman-Z score (1.77) than 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 (5.11) which is in line with 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/WACC0.78
WACC7.81%
2.3 Liquidity
- H6D0 has a Current Ratio of 0.98. This is a bad value and indicates that H6D0 is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of H6D0 (0.98) is worse than 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.
- Looking at the last year, H6D0 shows a decrease in Revenue. The Revenue has decreased by -0.61% in the last year.
- 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
- The Earnings Per Share is expected to grow by 9.56% on average over the next years. This is quite good.
- 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
- 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
- A Price/Earnings ratio of 20.74 indicates a rather expensive valuation of H6D0.
- Compared to the rest of the industry, the Price/Earnings ratio of H6D0 is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of H6D0 to the average of the S&P500 Index (28.87), we can say H6D0 is valued slightly cheaper.
- H6D0 is valuated rather expensively with a Price/Forward Earnings ratio of 18.17.
- H6D0's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. H6D0 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of H6D0 indicates a somewhat cheap valuation: H6D0 is cheaper than 80.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, H6D0 is valued cheaper than 94.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.48 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.63
PEG (5Y)1.18
EPS Next 2Y7.77%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.80%, H6D0 has a reasonable but not impressive dividend return.
- H6D0's Dividend Yield is a higher than the industry average which is at 1.62.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 3 / 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 4 / 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%.