HALEON PLC (H6D0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:H6D0 - GB00BMX86B70 - Common Stock
4.376 EUR
-0.04 (-0.82%)
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. 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 on the other hand it scores bad on growth.
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.
- Each year in the past 5 years H6D0 had a positive operating cash flow.
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.
- Looking at the Return On Equity, with a value of 8.92%, H6D0 is in line with its industry, outperforming 41.82% of the companies in the same 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
- 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.
- The Operating Margin of H6D0 (21.31%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of H6D0 has grown nicely.
- H6D0 has a Gross Margin of 60.75%. This is in the lower half of the industry: H6D0 underperforms 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
- H6D0 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, H6D0 has less shares outstanding
- Compared to 5 years ago, H6D0 has less shares outstanding
- 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.
- H6D0 has a debt to FCF ratio of 5.11. This is a neutral value as H6D0 would need 5.11 years to pay back of all of its debts.
- H6D0's Debt to FCF ratio of 5.11 is in line compared 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's Debt to Equity ratio of 0.53 is fine compared to the rest 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.
- H6D0 has a worse Current ratio (0.98) 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.
- With a Quick ratio value of 0.78, H6D0 is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
| 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.
- H6D0 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.
- 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
- H6D0 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.56% yearly.
- 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
- Based on the Price/Earnings ratio of 20.84, the valuation of H6D0 can be described as rather expensive.
- 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 (27.25), we can say H6D0 is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 18.26, the valuation of H6D0 can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as H6D0.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, H6D0 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 18.26 |
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 cheaply inside the industry as 94.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| 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)3.65
PEG (5Y)1.19
EPS Next 2Y7.77%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
- H6D0 has a Yearly Dividend Yield of 1.80%.
- 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 1.82, 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
- 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%.