Haleon plc
Haleon plc Fundamental Analysis
Haleon plc (HLNCF) shows weak financial fundamentals with a PE ratio of 23.76, profit margin of 13.81%, and ROE of 9.40%. The company generates $10.8B 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 38.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HLNCF's fundamental strength across five key dimensions:
Efficiency Score
WeakHLNCF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHLNCF shows balanced valuation metrics.
Growth Score
ModerateHLNCF shows steady but slowing expansion.
Financial Health Score
ModerateHLNCF shows balanced financial health with some risks.
Profitability Score
WeakHLNCF struggles to sustain strong margins.
Key Financial Metrics
Is HLNCF Expensive or Cheap?
P/E Ratio
HLNCF trades at 23.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HLNCF's PEG of 5.13 indicates potential overvaluation.
Price to Book
The market values Haleon plc at 2.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.71 times EBITDA. This signals the market has high growth expectations.
How Well Does HLNCF Make Money?
Net Profit Margin
For every $100 in sales, Haleon plc keeps $13.81 as profit after all expenses.
Operating Margin
Core operations generate 20.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.40 in profit for every $100 of shareholder equity.
ROA
Haleon plc generates $4.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Haleon plc generates limited operating cash flow of $1.01B, signaling weaker underlying cash strength.
Free Cash Flow
Haleon plc produces free cash flow of $915.56M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
HLNCF converts 2.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HLNCF Stacks Against Its Sector Peers
| Metric | HLNCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.76 | 29.78 | Better (Cheaper) |
| ROE | 9.40% | 792.00% | Weak |
| Net Margin | 13.81% | -23280.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 0.25 | Weak (High Leverage) |
| Current Ratio | 0.87 | 4.60 | Weak Liquidity |
| ROA | 4.78% | -18077.00% (disorted) | Weak |
HLNCF 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