Haleon plc
Haleon plc Fundamental Analysis
Haleon plc (HLN) shows moderate financial fundamentals with a PE ratio of 12.51, profit margin of 14.43%, and ROE of 17.20%. The company generates $19.3B in annual revenue with weak year-over-year growth of -0.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HLN's fundamental strength across five key dimensions:
Efficiency Score
WeakHLN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHLN trades at attractive valuation levels.
Growth Score
ModerateHLN shows steady but slowing expansion.
Financial Health Score
ModerateHLN shows balanced financial health with some risks.
Profitability Score
ModerateHLN maintains healthy but balanced margins.
Key Financial Metrics
Is HLN Expensive or Cheap?
P/E Ratio
HLN trades at 12.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HLN's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Haleon plc at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.79 times EBITDA. This is generally considered low.
How Well Does HLN Make Money?
Net Profit Margin
For every $100 in sales, Haleon plc keeps $14.43 as profit after all expenses.
Operating Margin
Core operations generate 21.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.20 in profit for every $100 of shareholder equity.
ROA
Haleon plc generates $8.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Haleon plc produces operating cash flow of $2.62B, showing steady but balanced cash generation.
Free Cash Flow
Haleon plc generates strong free cash flow of $2.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.51 in free cash annually.
FCF Yield
HLN converts 6.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How HLN Stacks Against Its Sector Peers
| Metric | HLN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.51 | 28.53 | Better (Cheaper) |
| ROE | 17.20% | 751.00% | Weak |
| Net Margin | 14.43% | -19212.00% (disorted) | Strong |
| Debt/Equity | 0.52 | 0.30 | Weak (High Leverage) |
| Current Ratio | 0.92 | 4.53 | Weak Liquidity |
| ROA | 8.54% | -15881.00% (disorted) | Weak |
HLN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Haleon plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.03%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
122.76%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
196.21%
Industry Style: Defensive, Growth, Innovation
High Growth