DB:H11

Stock Analysis Report

Executive Summary

Halma plc provides technology solutions in the safety, health and environmental markets.

Rewards

Earnings are forecast to grow 8.32% per year

Earnings grew by 7.8% over the past year

Pays a reliable dividend of 0.75%

Risk Analysis

No risks detected for H11 from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Halma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: H11 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

H11

-6.6%

DE Electronic

-5.7%

DE Market


1 Year Return

41.0%

H11

-0.6%

DE Electronic

6.1%

DE Market

Return vs Industry: H11 exceeded the German Electronic industry which returned -0.6% over the past year.

Return vs Market: H11 exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

H11IndustryMarket
7 Day-2.0%-6.6%-5.7%
30 Day-1.7%1.2%-5.7%
90 Day0.5%-0.2%-3.6%
1 Year42.1%41.0%1.5%-0.6%9.3%6.1%
3 Year134.1%126.8%36.1%31.6%8.9%-0.7%
5 Year178.1%161.8%103.1%88.5%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Halma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Halma undervalued compared to its fair value and its price relative to the market?

44.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: H11 (€25.5) is trading above our estimate of fair value (€11.65)

Significantly Below Fair Value: H11 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: H11 is poor value based on its PE Ratio (44.1x) compared to the Electronic industry average (26x).

PE vs Market: H11 is poor value based on its PE Ratio (44.1x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: H11 is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: H11 is overvalued based on its PB Ratio (7.5x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Halma forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H11's forecast earnings growth (8.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: H11's earnings (8.3% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: H11's earnings are forecast to grow, but not significantly.

Revenue vs Market: H11's revenue (6% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: H11's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: H11's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Halma performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H11 has high quality earnings.

Growing Profit Margin: H11's current net profit margins (14.1%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: H11's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: H11's earnings growth over the past year (7.8%) is below its 5-year average (12.6% per year).

Earnings vs Industry: H11 earnings growth over the past year (7.8%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: H11's Return on Equity (16.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Halma's financial position?


Financial Position Analysis

Short Term Liabilities: H11's short term assets (£527.0M) exceed its short term liabilities (£206.5M).

Long Term Liabilities: H11's short term assets (£527.0M) exceed its long term liabilities (£469.5M).


Debt to Equity History and Analysis

Debt Level: H11's debt to equity ratio (31.5%) is considered satisfactory.

Reducing Debt: H11's debt to equity ratio has reduced from 36.7% to 31.5% over the past 5 years.

Debt Coverage: H11's debt is well covered by operating cash flow (64.7%).

Interest Coverage: H11's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet

Inventory Level: H11 has a low level of unsold assets or inventory.

Debt Coverage by Assets: H11's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Halma's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.8%industryaverage1.3%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: H11's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: H11's dividend (0.75%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: H11's dividends per share have been stable in the past 10 years.

Growing Dividend: H11's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34%), H11's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H11's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Andrew Williams (52yo)

15yrs

Tenure

UK£3,448,000

Compensation

Mr. Andrew J. Williams has been the Group Chief Executive Officer of Halma plc since February 2005 and has been Member its Executive Board since April 2002. Mr. Williams serves as Chief Executive of a FTSE ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD4.49M) is about average for companies of similar size in the German market ($USD4.53M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Williams
Group CEO15yrsUK£3.45m0.17% £16.3m
Marc Ronchetti
Group CFO & Executive Director1.6yrsUK£1.14m0.0021% £200.8k
Adam Meyers
Member of Executive Board & Director11.8yrsUK£1.69m0.092% £8.7m
Jennifer Ward
Group Talent & Communications Director3.4yrsUK£1.24m0.011% £1.1m
Paul Simmons
Chief Executive of Infrastructure Safety Sector & Member of Executive Management Board3.6yrsno data0.010% £961.0k
Inken Braunschmidt
Chief Innovation & Digital Officer and Member of Executive Board2.6yrsno data0.000050% £4.8k
Ruwan De Soyza
General Counsel0.4yrsno datano data
Catherine Michel
CTO & Member of Executive Board0.4yrsno datano data
Laura Stoltenberg
Sector Chief Executive of Medical & Environmental and Member of Executive Board0.3yrsno datano data
Charles King
Head of Investor Relations0yrsno datano data

2.6yrs

Average Tenure

49yo

Average Age

Experienced Management: H11's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Williams
Group CEO15yrsUK£3.45m0.17% £16.3m
Marc Ronchetti
Group CFO & Executive Director1.6yrsUK£1.14m0.0021% £200.8k
Adam Meyers
Member of Executive Board & Director11.8yrsUK£1.69m0.092% £8.7m
Jennifer Ward
Group Talent & Communications Director3.4yrsUK£1.24m0.011% £1.1m
Daniela Soares
Independent Non-Executive Director8.3yrsUK£57.00k0.00065% £61.8k
William Rice
Senior Independent Director4.6yrsUK£77.00k0.0045% £425.3k
Paul Walker
Non-Executive Chairman6.6yrsUK£250.00k0.0079% £752.6k
Roy Twite
Independent Non-Executive Director5.6yrsUK£57.00k0.0010% £99.9k
Jo Harlow
Independent Non-Executive Director3.3yrsUK£57.00k0.00053% £50.4k
Carole Cran
Independent Non-Executive Director4.1yrsUK£72.00k0.00053% £50.4k

5.1yrs

Average Tenure

57yo

Average Age

Experienced Board: H11's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Halma plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Halma plc
  • Ticker: H11
  • Exchange: DB
  • Founded: 1894
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£7.957b
  • Listing Market Cap: UK£9.515b
  • Shares outstanding: 379.25m
  • Website: https://www.halma.com

Number of Employees


Location

  • Halma plc
  • Misbourne Court
  • Rectory Way
  • Amersham
  • Buckinghamshire
  • HP7 0DE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLMA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HLMALSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
H11DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HLMALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
HALM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADSUSUSDApr 2018

Biography

Halma plc provides technology solutions in the safety, health and environmental markets. It operates in four segments: Process Safety, Infrastructure Safety, Environmental & Analysis, and Medical. The Process Safety segment offers specialized interlocks that control critical processes safely; instruments that detect flammable and hazardous gases; and explosion protection and corrosion monitoring systems. This segment serves the gas detection, industrial access control, pressure management, and safe storage and transfer markets. The Infrastructure Safety segment provides fire detection systems, specialist fire suppression systems, people and vehicle flow technologies, and security sensors. It serves the fire detection and suppression, and elevator markets. The Environmental & Analysis segment opto-electronic technology and sensors, flow gap measurement instruments, and gas conditioning products, as well as solutions for environmental data recording, water quality testing, water distribution network monitoring, and UV water treatment. It serves the spectroscopy and photonics, water analysis and treatment, and environmental monitoring markets. The Medical segment offers devices that assess eye health; assist with eye surgery and primary care applications; critical fluidic components used by medical diagnostics and OEMs; and laboratories and sensor technologies used in hospitals to track assets and support patient and staff safety. This segment serves the diagnostics, sensor technology, ophthalmology, and patient assessment market. The company was founded in 1894 and is headquartered in Amersham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:46
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.