HALEON PLC (H6D0.DE) Stock Fundamental Analysis
Europe - FRA:H6D0 - GB00BMX86B70 - Common Stock
4.039 EUR
+0.06 (+1.51%)
We assign a fundamental rating of 3 out of 10 to H6D0. H6D0 was compared to 54 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
H6D0 had positive earnings in the past year.
In the past year H6D0 had a positive cash flow from operations.
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 (4.20%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.92%, H6D0 is in line with its industry, outperforming 42.59% of the companies in the same industry.
H6D0 has a Return On Invested Capital of 6.11%. This is comparable to the rest of the industry: H6D0 outperforms 42.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for H6D0 is significantly below the industry average of 14.71%.
| 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 55.56% 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.
H6D0's Operating Margin has improved in the last couple of years.
The Gross Margin of H6D0 (60.75%) is worse than 62.96% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), H6D0 is destroying value.
H6D0 has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, H6D0 has less shares outstanding
H6D0 has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that H6D0 is in the distress zone and has some risk of bankruptcy.
H6D0's Altman-Z score of 1.73 is on the low side compared to the rest of the industry. H6D0 is outperformed by 68.52% 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 has a Debt to FCF ratio of 5.11. This is comparable to the rest of the industry: H6D0 outperforms 46.30% 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 in line compared to the rest of the industry. H6D0 outperforms 59.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.79
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.98 indicates that H6D0 may have some problems paying its short term obligations.
The Current ratio of H6D0 (0.98) is worse than 74.07% of its industry peers.
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 has a worse Quick ratio (0.78) than 64.81% of its industry peers.
| 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.
Looking at the last year, H6D0 shows a decrease in Revenue. The Revenue has decreased by -0.61% in the last year.
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%-5.33%
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 8.41% yearly.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y5.23%
EPS Next 2Y7.25%
EPS Next 3Y8.26%
EPS Next 5Y8.41%
Revenue Next Year-1.7%
Revenue Next 2Y1.17%
Revenue Next 3Y2.29%
Revenue Next 5Y3.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.23, which indicates a rather expensive current valuation of H6D0.
The rest of the industry has a similar Price/Earnings ratio as H6D0.
H6D0's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
H6D0 is valuated rather expensively with a Price/Forward Earnings ratio of 17.06.
H6D0's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.94. H6D0 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.06 |
4.2 Price Multiples
74.07% of the companies in the same industry are more expensive than H6D0, based on the Enterprise Value to EBITDA ratio.
88.89% of the companies in the same industry are more expensive than H6D0, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.89 | ||
| EV/EBITDA | 8.65 |
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)3.68
PEG (5Y)1.1
EPS Next 2Y7.25%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
H6D0 has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
H6D0's Dividend Yield is comparable with the industry average which is at 3.10.
Compared to an average S&P500 Dividend Yield of 2.36, H6D0 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 2Y7.25%
EPS Next 3Y8.26%
FRA:H6D0 (10/17/2025, 7:00:00 PM)
4.039
+0.06 (+1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners56.78%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap17.99B
Analysts78.46
Price Target4.94 (22.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.07
Dividend Growth(5Y)N/A
DP39.53%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-1.74%
PT rev (3m)-5.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.06 | ||
| P/S | 1.39 | ||
| P/FCF | 7.89 | ||
| P/OCF | 6.8 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.65 |
EPS(TTM)0.21
EY5.2%
EPS(NY)0.24
Fwd EY5.86%
FCF(TTM)0.51
FCFY12.68%
OCF(TTM)0.59
OCFY14.71%
SpS2.9
BVpS4.18
TBVpS-2.59
PEG (NY)3.68
PEG (5Y)1.1
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 | 1.73 |
F-Score6
WACC7.69%
ROIC/WACC0.79
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 Y5.23%
EPS Next 2Y7.25%
EPS Next 3Y8.26%
EPS Next 5Y8.41%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-5.33%
Revenue Next Year-1.7%
Revenue Next 2Y1.17%
Revenue Next 3Y2.29%
Revenue Next 5Y3.34%
EBIT growth 1Y4.68%
EBIT growth 3Y5.1%
EBIT growth 5Y9.75%
EBIT Next Year11.73%
EBIT Next 3Y8.25%
EBIT Next 5Y7.5%
FCF growth 1Y12.42%
FCF growth 3Y23.3%
FCF growth 5Y29.57%
OCF growth 1Y9.57%
OCF growth 3Y19.28%
OCF growth 5Y23.96%