HALEON PLC-ADR (HLN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLN - US4055521003 - ADR
10.37 USD
-0.09 (-0.86%)
10.37 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HLN. HLN was compared to 190 industry peers in the Pharmaceuticals industry. While HLN has a great profitability rating, there are some minor concerns on its financial health. HLN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- HLN had positive earnings in the past year.
- In the past year HLN had a positive cash flow from operations.
- HLN had positive earnings in each of the past 5 years.
- In the past 5 years HLN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HLN (4.20%) is better than 85.26% of its industry peers.
- HLN's Return On Equity of 8.92% is amongst the best of the industry. HLN outperforms 84.21% of its industry peers.
- HLN has a better Return On Invested Capital (6.11%) than 83.68% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HLN is significantly below the industry average of 12.83%.
| 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
- With an excellent Profit Margin value of 12.84%, HLN belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
- HLN's Profit Margin has improved in the last couple of years.
- The Operating Margin of HLN (21.31%) is better than 88.95% of its industry peers.
- HLN's Operating Margin has improved in the last couple of years.
- HLN has a Gross Margin of 60.75%. This is in the better half of the industry: HLN outperforms 70.53% 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.
- Compared to 1 year ago, HLN has less shares outstanding
- HLN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HLN is higher compared to a year ago.
2.2 Solvency
- HLN has an Altman-Z score of 2.33. 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 better Altman-Z score (2.33) than 63.16% of its industry peers.
- The Debt to FCF ratio of HLN is 5.11, which is a neutral value as it means it would take HLN, 5.11 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HLN (5.11) is better than 82.63% 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 64.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.73
WACC8.32%
2.3 Liquidity
- HLN has a Current 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.
- HLN's Current ratio of 0.98 is on the low side compared to the rest of the industry. HLN is outperformed by 85.26% of its industry peers.
- A Quick Ratio of 0.78 indicates that HLN may have some problems paying its short term obligations.
- HLN has a worse Quick ratio (0.78) than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- HLN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
- The Earnings Per Share has been growing by 17.56% on average over the past years. This is quite good.
- HLN shows a decrease in Revenue. In the last year, the revenue decreased by -0.61%.
- HLN 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
- Based on estimates for the next years, HLN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.56% on average per year.
- HLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
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.
- 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.
- 80.00% of the companies in the same industry are more expensive than HLN, based on the Price/Earnings ratio.
- HLN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 17.74, which indicates a rather expensive current valuation of HLN.
- 79.47% of the companies in the same industry are more expensive than HLN, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HLN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HLN is valued cheaply inside the industry as 81.58% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, HLN is valued cheaper than 85.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 15.35 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of HLN may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)1.18
EPS Next 2Y7.77%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
- HLN has a Yearly Dividend Yield of 1.80%. 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 0.46. HLN pays more dividend than 91.58% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HLN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
- HLN has been paying a dividend for at least 10 years, so it has 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
- 39.53% of the earnings are spent on dividend by HLN. This is a low number and sustainable payout ratio.
DP39.53%
EPS Next 2Y7.77%
EPS Next 3Y8.45%
HALEON PLC-ADR / HLN FAQ
Can you provide the ChartMill fundamental rating for HALEON PLC-ADR?
ChartMill assigns a fundamental rating of 5 / 10 to HLN.
Can you provide the valuation status for HALEON PLC-ADR?
ChartMill assigns a valuation rating of 5 / 10 to HALEON PLC-ADR (HLN). This can be considered as Fairly Valued.
How profitable is HALEON PLC-ADR (HLN) stock?
HALEON PLC-ADR (HLN) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HLN stock?
The Price/Earnings (PE) ratio for HALEON PLC-ADR (HLN) is 20.74 and the Price/Book (PB) ratio is 2.09.
Can you provide the dividend sustainability for HLN stock?
The dividend rating of HALEON PLC-ADR (HLN) is 5 / 10 and the dividend payout ratio is 39.53%.