HALEON PLC-ADR (HLN) Stock Fundamental Analysis
NYSE:HLN - New York Stock Exchange, Inc. - US4055521003 - ADR - Currency: USD
Overall HLN gets a fundamental rating of 5 out of 10. We evaluated HLN against 195 industry peers in the Pharmaceuticals industry. HLN scores excellent on profitability, but there are some minor concerns on its financial health. HLN is valued correctly, but it does not seem to be growing.
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
HLN has a better Return On Assets (4.20%) than 87.18% of its industry peers.
HLN's Return On Equity of 8.92% is amongst the best of the industry. HLN outperforms 87.18% of its industry peers.
With an excellent Return On Invested Capital value of 6.11%, HLN belongs to the best of the industry, outperforming 84.10% of the companies in the same industry.
HLN had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 14.87%.
| 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
HLN's Profit Margin of 12.84% is amongst the best of the industry. HLN outperforms 89.74% of its industry peers.
HLN's Profit Margin has improved in the last couple of years.
HLN's Operating Margin of 21.31% is amongst the best of the industry. HLN outperforms 87.69% of its industry peers.
HLN's Operating Margin has improved in the last couple of years.
HLN has a better Gross Margin (60.75%) than 70.26% of its industry peers.
HLN'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
HLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HLN has been reduced compared to 1 year ago.
Compared to 5 years ago, HLN has less shares outstanding
HLN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that HLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, HLN is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
HLN has a debt to FCF ratio of 5.11. This is a neutral value as HLN would need 5.11 years to pay back of all of its debts.
HLN's Debt to FCF ratio of 5.11 is amongst the best of the industry. HLN outperforms 83.59% of its industry peers.
HLN has a Debt/Equity ratio of 0.53. This is a neutral value indicating HLN is somewhat dependend on debt financing.
HLN has a worse Debt to Equity ratio (0.53) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.75
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.98 indicates that HLN may have some problems paying its short term obligations.
HLN has a worse Current ratio (0.98) than 83.59% of its industry peers.
HLN has a Quick Ratio of 0.98. This is a bad value and indicates that HLN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.78, HLN is doing worse than 83.59% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 17.56% on average over the past years. This is quite good.
Looking at the last year, HLN 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%32.07%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-0.25%
3.2 Future
HLN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.34% yearly.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y9.06%
EPS Next 2Y8.99%
EPS Next 3Y8.81%
EPS Next 5Y8.34%
Revenue Next Year0.74%
Revenue Next 2Y2.54%
Revenue Next 3Y3.21%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 20.74 indicates a rather expensive valuation of HLN.
HLN's Price/Earnings ratio is rather cheap when compared to the industry. HLN is cheaper than 81.54% of the companies in the same industry.
HLN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.98, 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 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, HLN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLN is valued cheaper than 81.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLN is valued cheaply inside the industry as 85.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.15 | ||
| EV/EBITDA | 15.42 |
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.
The excellent profitability rating of HLN may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)1.18
EPS Next 2Y8.99%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
HLN has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
HLN's Dividend Yield is rather good when compared to the industry average which is at 4.12. HLN pays more dividend than 91.28% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, HLN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
HLN has paid a dividend for at least 10 years, which is a reliable track record.
HLN has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y8.99%
EPS Next 3Y8.81%
10.37
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners56.28%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap46.66B
Analysts79.23
Price Target12.02 (15.91%)
Short Float %0.44%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)4.85%
PT rev (3m)8.2%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.98 | ||
| P/S | 3.03 | ||
| P/FCF | 17.15 | ||
| P/OCF | 14.78 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.42 |
EPS(TTM)0.5
EY4.82%
EPS(NY)0.55
Fwd EY5.27%
FCF(TTM)0.6
FCFY5.83%
OCF(TTM)0.7
OCFY6.77%
SpS3.43
BVpS4.93
TBVpS-3.06
PEG (NY)2.29
PEG (5Y)1.18
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 | 2.34 |
F-Score6
WACC8.1%
ROIC/WACC0.75
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%32.07%
EPS Next Y9.06%
EPS Next 2Y8.99%
EPS Next 3Y8.81%
EPS Next 5Y8.34%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-0.25%
Revenue Next Year0.74%
Revenue Next 2Y2.54%
Revenue Next 3Y3.21%
Revenue Next 5Y3.41%
EBIT growth 1Y4.68%
EBIT growth 3Y5.1%
EBIT growth 5Y9.75%
EBIT Next Year13.76%
EBIT Next 3Y8.96%
EBIT Next 5Y6.64%
FCF growth 1Y12.42%
FCF growth 3Y23.3%
FCF growth 5Y29.57%
OCF growth 1Y9.57%
OCF growth 3Y19.28%
OCF growth 5Y23.96%