HALEON PLC-ADR (HLN) Stock Fundamental Analysis
USA - NYSE:HLN - US4055521003 - ADR
9.81 USD
-0.06 (-0.61%)
9.851 USD
+0.04 (+0.42%)
Taking everything into account, HLN scores 5 out of 10 in our fundamental rating. HLN was compared to 195 industry peers in the Pharmaceuticals industry. While HLN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
In the past year HLN had a positive cash flow from operations.
HLN had positive earnings in each of the past 5 years.
Each year in the past 5 years HLN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.20%, HLN belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
With an excellent Return On Equity value of 8.92%, HLN belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
HLN has a better Return On Invested Capital (6.11%) than 83.16% of its industry peers.
HLN had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 15.28%.
| 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 87.76% of the companies in the same industry.
In the last couple of years the Profit Margin of HLN has grown nicely.
HLN has a Operating Margin of 21.31%. This is amongst the best in the industry. HLN outperforms 88.27% of its industry peers.
In the last couple of years the Operating Margin of HLN has grown nicely.
HLN's Gross Margin of 60.75% is fine compared to the rest of the industry. HLN outperforms 67.86% of its industry peers.
In the last couple of years the Gross Margin of HLN 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), HLN is destroying value.
HLN has less shares outstanding than it did 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
HLN has an Altman-Z score of 2.28. 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.
The Altman-Z score of HLN (2.28) is better than 68.37% 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.
HLN's Debt to FCF ratio of 5.11 is amongst the best of the industry. HLN outperforms 82.65% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that HLN is somewhat dependend on debt financing.
The Debt to Equity ratio of HLN (0.53) is worse than 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.76
WACC8.04%
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 has a worse Current ratio (0.98) than 81.63% of its industry peers.
A Quick Ratio of 0.78 indicates that HLN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, HLN is doing worse than 80.61% of the companies in the same industry.
| 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%.
HLN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.56% yearly.
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%-5.33%
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 8.66% yearly.
HLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.51% yearly.
EPS Next Y5.64%
EPS Next 2Y7.39%
EPS Next 3Y8.19%
EPS Next 5Y8.66%
Revenue Next Year-1.7%
Revenue Next 2Y1.23%
Revenue Next 3Y2.33%
Revenue Next 5Y3.51%
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
Based on the Price/Earnings ratio of 19.62, the valuation of HLN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HLN indicates a rather cheap valuation: HLN is cheaper than 82.14% of the companies listed in the same industry.
HLN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
HLN is valuated rather expensively with a Price/Forward Earnings ratio of 17.14.
Based on the Price/Forward Earnings ratio, HLN is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HLN to the average of the S&P500 Index (22.73), we can say HLN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLN is valued cheaper than 82.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLN indicates a rather cheap valuation: HLN is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 14.84 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.48
PEG (5Y)1.12
EPS Next 2Y7.39%
EPS Next 3Y8.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, HLN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.03, HLN pays a better dividend. On top of this HLN pays more dividend than 91.84% of the companies listed in the same industry.
HLN's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
HLN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HLN decreased 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 2Y7.39%
EPS Next 3Y8.19%
9.81
-0.06 (-0.61%)
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 Cap43.97B
Analysts78.46
Price Target11.82 (20.49%)
Short Float %0.46%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP39.53%
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)1.4%
PT rev (3m)-1.13%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)-2.93%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.14 | ||
| P/S | 2.89 | ||
| P/FCF | 16.37 | ||
| P/OCF | 14.11 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.84 |
EPS(TTM)0.5
EY5.1%
EPS(NY)0.57
Fwd EY5.83%
FCF(TTM)0.6
FCFY6.11%
OCF(TTM)0.7
OCFY7.09%
SpS3.39
BVpS4.88
TBVpS-3.03
PEG (NY)3.48
PEG (5Y)1.12
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 | 2.28 |
F-Score6
WACC8.04%
ROIC/WACC0.76
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 Y5.64%
EPS Next 2Y7.39%
EPS Next 3Y8.19%
EPS Next 5Y8.66%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y5.58%
Revenue growth 5Y5.78%
Sales Q2Q%-5.33%
Revenue Next Year-1.7%
Revenue Next 2Y1.23%
Revenue Next 3Y2.33%
Revenue Next 5Y3.51%
EBIT growth 1Y4.68%
EBIT growth 3Y5.1%
EBIT growth 5Y9.75%
EBIT Next Year13.76%
EBIT Next 3Y8.96%
EBIT Next 5Y7.69%
FCF growth 1Y12.42%
FCF growth 3Y23.3%
FCF growth 5Y29.57%
OCF growth 1Y9.57%
OCF growth 3Y19.28%
OCF growth 5Y23.96%