HALEON PLC-ADR (HLN) Stock Fundamental Analysis
NYSE:HLN - New York Stock Exchange, Inc. - US4055521003 - ADR - Currency: USD
Taking everything into account, HLN scores 4 out of 10 in our fundamental rating. HLN was compared to 37 industry peers in the Personal Care Products industry. HLN has a medium profitability rating, but doesn't score so well on its financial health evaluation. HLN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HLN had positive earnings in the past year.
HLN had a positive operating cash flow in the past year.
Each year in the past 5 years HLN has been profitable.
In the past 5 years HLN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.26%, HLN is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
The Return On Equity of HLN (6.55%) is better than 69.44% of its industry peers.
HLN has a better Return On Invested Capital (5.87%) than 61.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLN is significantly below the industry average of 13.42%.
The last Return On Invested Capital (5.87%) for HLN is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.55% | ||
| ROIC | 5.87% |
ROA(3y)3.39%
ROA(5y)3.07%
ROE(3y)6.03%
ROE(5y)4.97%
ROIC(3y)5.38%
ROIC(5y)4.91%
1.3 Margins
The Profit Margin of HLN (9.66%) is better than 77.78% of its industry peers.
HLN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.13%, HLN belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
In the last couple of years the Operating Margin of HLN has remained more or less at the same level.
HLN has a Gross Margin (61.56%) which is comparable to the rest of the industry.
HLN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 9.66% | ||
| GM | 61.56% |
OM growth 3Y0.01%
OM growth 5YN/A
PM growth 3Y-7.1%
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLN is destroying value.
The number of shares outstanding for HLN remains at a similar level compared to 1 year ago.
Compared to 1 year ago, HLN has an improved debt to assets ratio.
2.2 Solvency
HLN has an Altman-Z score of 2.50. This is not the best score and indicates that HLN is in the grey zone with still only limited risk for bankruptcy at the moment.
HLN has a Altman-Z score (2.50) which is in line with its industry peers.
The Debt to FCF ratio of HLN is 4.69, which is a neutral value as it means it would take HLN, 4.69 years of fcf income to pay off all of its debts.
HLN's Debt to FCF ratio of 4.69 is fine compared to the rest of the industry. HLN outperforms 69.44% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that HLN is not too dependend on debt financing.
HLN has a worse Debt to Equity ratio (0.45) than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.76
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.84 indicates that HLN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, HLN is doing worse than 80.56% of the companies in the same industry.
HLN has a Quick Ratio of 0.84. This is a bad value and indicates that HLN is not financially healthy enough and could expect problems in meeting its short term obligations.
HLN's Quick ratio of 0.58 is on the low side compared to the rest of the industry. HLN is outperformed by 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for HLN have decreased by -0.24% in the last year.
Measured over the past years, HLN shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.91% on average per year.
Looking at the last year, HLN shows a decrease in Revenue. The Revenue has decreased by -0.65% in the last year.
Measured over the past years, HLN shows a small growth in Revenue. The Revenue has been growing by 4.54% on average per year.
EPS 1Y (TTM)-0.24%
EPS 3Y-1.91%
EPS 5YN/A
EPS Q2Q%-8.8%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y4.54%
Revenue growth 5YN/A
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 7.73% on average over the next years.
The Revenue is expected to grow by 3.11% on average over the next years.
EPS Next Y7.66%
EPS Next 2Y8.71%
EPS Next 3Y8.92%
EPS Next 5Y7.73%
Revenue Next Year-0.41%
Revenue Next 2Y1.22%
Revenue Next 3Y2.43%
Revenue Next 5Y3.11%
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 accelerating.
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 23.44 indicates a rather expensive valuation of HLN.
Based on the Price/Earnings ratio, HLN is valued a bit cheaper than 63.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. HLN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.90, HLN is valued on the expensive side.
HLN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HLN is cheaper than 63.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLN to the average of the S&P500 Index (22.68), we can say HLN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
HLN's Enterprise Value to EBITDA ratio is in line with the industry average.
HLN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HLN is cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 16.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLN does not grow enough to justify the current Price/Earnings ratio.
HLN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)N/A
EPS Next 2Y8.71%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
HLN has a Yearly Dividend Yield of 1.58%.
Compared to an average industry Dividend Yield of 4.99, HLN pays a bit more dividend than its industry peers.
HLN's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
HLN has been paying a dividend for over 5 years, so it has already some track record.
The dividend of HLN decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y8.71%
EPS Next 3Y8.92%
10.08
+0.18 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners43.9%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap45.58B
Analysts78.33
Price Target10.63 (5.46%)
Short Float %0.59%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.94%
Min EPS beat(2)2.34%
Max EPS beat(2)7.54%
EPS beat(4)3
Avg EPS beat(4)-3.99%
Min EPS beat(4)-31.84%
Max EPS beat(4)7.54%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-2.71%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-2.49%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-4.51%
Max Revenue beat(4)-2.49%
Revenue beat(8)1
Avg Revenue beat(8)-2.44%
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)2.42%
PT rev (3m)-0.56%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)146.84%
EPS NY rev (3m)146.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 19.9 | ||
| P/S | 3.21 | ||
| P/FCF | 19.14 | ||
| P/OCF | 16.48 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.28 |
EPS(TTM)0.43
EY4.27%
EPS(NY)0.51
Fwd EY5.02%
FCF(TTM)0.53
FCFY5.23%
OCF(TTM)0.61
OCFY6.07%
SpS3.14
BVpS4.63
TBVpS-2.72
PEG (NY)3.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.55% | ||
| ROCE | 8.57% | ||
| ROIC | 5.87% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 177.08% | ||
| OM | 21.13% | ||
| PM (TTM) | 9.66% | ||
| GM | 61.56% | ||
| FCFM | 16.78% |
ROA(3y)3.39%
ROA(5y)3.07%
ROE(3y)6.03%
ROE(5y)4.97%
ROIC(3y)5.38%
ROIC(5y)4.91%
ROICexc(3y)5.51%
ROICexc(5y)5%
ROICexgc(3y)81.8%
ROICexgc(5y)65.41%
ROCE(3y)7.94%
ROCE(5y)7.24%
ROICexcg growth 3Y29.07%
ROICexcg growth 5YN/A
ROICexc growth 3Y6.66%
ROICexc growth 5YN/A
OM growth 3Y0.01%
OM growth 5YN/A
PM growth 3Y-7.1%
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5YN/A
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 98.06% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 5.98 | ||
| Cash Conversion | 81.55% | ||
| Profit Quality | 173.62% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.5 |
F-Score6
WACC7.69%
ROIC/WACC0.76
Cap/Depr(3y)111.41%
Cap/Depr(5y)106.39%
Cap/Sales(3y)3.04%
Cap/Sales(5y)3.04%
Profit Quality(3y)135.99%
Profit Quality(5y)117.19%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.24%
EPS 3Y-1.91%
EPS 5YN/A
EPS Q2Q%-8.8%
EPS Next Y7.66%
EPS Next 2Y8.71%
EPS Next 3Y8.92%
EPS Next 5Y7.73%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y4.54%
Revenue growth 5YN/A
Sales Q2Q%-0.64%
Revenue Next Year-0.41%
Revenue Next 2Y1.22%
Revenue Next 3Y2.43%
Revenue Next 5Y3.11%
EBIT growth 1Y-0.38%
EBIT growth 3Y4.56%
EBIT growth 5YN/A
EBIT Next Year12.55%
EBIT Next 3Y7.26%
EBIT Next 5Y6.12%
FCF growth 1Y1.67%
FCF growth 3Y17.44%
FCF growth 5YN/A
OCF growth 1Y1.79%
OCF growth 3Y14.28%
OCF growth 5YN/A