HALEON PLC (H6D0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:H6D0 - GB00BMX86B70 - Common Stock
4.412 EUR
+0.03 (+0.78%)
Overall H6D0 gets a fundamental rating of 3 out of 10. We evaluated H6D0 against 55 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of H6D0 while its profitability can be described as average. H6D0 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- Each year in the past 5 years H6D0 has been profitable.
- In the past 5 years H6D0 always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 4.20%, H6D0 is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for H6D0 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.
- H6D0 has a Operating Margin of 21.31%. This is comparable to the rest of the industry: H6D0 outperforms 52.73% of its industry peers.
- In the last couple of years the Operating Margin of H6D0 has grown nicely.
- The Gross Margin of H6D0 (60.75%) is worse 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 Altman-Z score of 1.77. This is in the lower half of the industry: H6D0 underperforms 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.
- A Debt/Equity ratio of 0.53 indicates that H6D0 is somewhat dependend on debt financing.
- H6D0 has a Debt to Equity ratio of 0.53. This is in the better half of the industry: H6D0 outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.78
WACC7.82%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that H6D0 may have some problems paying its short term obligations.
- With a Current ratio value of 0.98, H6D0 is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
- H6D0 has a Quick 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.
- H6D0's Quick ratio of 0.78 is on the low side compared to the rest of the industry. H6D0 is outperformed by 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%.
- 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%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.
- Based on estimates for the next years, H6D0 will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
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.
- H6D0's Price/Earnings is on the same level as the industry average.
- H6D0 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 18.42, H6D0 is valued on the expensive side.
- H6D0's Price/Forward Earnings is on the same level as the industry average.
- H6D0 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
- H6D0's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. H6D0 is cheaper than 80.00% of the companies 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 | 8.6 | ||
| 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
- With a Yearly Dividend Yield of 1.80%, H6D0 has a reasonable but not impressive dividend return.
- 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
- 39.53% of the earnings are spent on dividend by H6D0. This is a low number and 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%.