LSE:HLMA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

-2.5%

HLMA

-0.6%

GB Electronic

0.08%

GB Market


1 Year Return

45.1%

HLMA

13.1%

GB Electronic

3.5%

GB Market

Return vs Industry: HLMA exceeded the UK Electronic industry which returned 13.1% over the past year.

Return vs Market: HLMA exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

HLMAIndustryMarket
7 Day-2.5%-0.6%0.08%
30 Day-7.0%-4.6%-1.3%
90 Day-8.5%-7.4%-2.2%
1 Year46.5%45.1%15.0%13.1%9.0%3.5%
3 Year82.7%76.6%49.5%42.7%18.1%3.1%
5 Year217.7%198.1%121.7%102.5%36.2%5.3%

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

Valuation

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

40.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLMA (£18.14) is trading above our estimate of fair value (£7.93)

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


Price To Earnings Ratio

PE vs Industry: HLMA is poor value based on its PE Ratio (40.5x) compared to the Electronic industry average (20.6x).

PE vs Market: HLMA is poor value based on its PE Ratio (40.5x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: HLMA is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: HLMA is overvalued based on its PB Ratio (7x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Halma forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLMA's forecast earnings growth (8.2% per year) is above the savings rate (1.2%).

Earnings vs Market: HLMA's earnings (8.2% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: HLMA's revenue (6.9% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: HLMA's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLMA's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Halma performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLMA's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: HLMA's earnings growth over the past year (10.1%) is below its 5-year average (11.2% per year).

Earnings vs Industry: HLMA earnings growth over the past year (10.1%) exceeded the Electronic industry -14.4%.


Return on Equity

High ROE: HLMA's Return on Equity (17.3%) is considered low.


Return on Assets

ROA vs Industry: HLMA has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: HLMA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Halma's financial position?


Financial Position Analysis

Short Term Liabilities: HLMA's short term assets (£486.2M) exceeds its short term liabilities (£213.1M)

Long Term Liabilities: HLMA's short term assets (486.2M) exceeds its long term liabilities (389.3M)


Debt to Equity History and Analysis

Debt Level: HLMA's debt to equity ratio (26.8%) is considered satisfactory

Reducing Debt: HLMA's debt to equity ratio has increased from 22.9% to 26.8% over the past 5 years.

Debt Coverage: HLMA's debt is well covered by operating cash flow (83.3%).

Interest Coverage: HLMA's interest payments on its debt are well covered by EBIT (25.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: HLMA's debt is covered by short term assets (assets are 1.849370x debt).


Next Steps

Dividend

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

0.87%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HLMA's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: HLMA's dividend (0.87%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: HLMA is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: HLMA is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HLMA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLMA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Halma's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Andrew Williams (52yo)

14.7yrs

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 ($USD4.44M) is about average for companies of similar size in the UK market ($USD3.53M).

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


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: HLMA's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

Experienced Board: HLMA's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: HLMA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£1,380,33429 Jul 19
Andrew Williams
EntityIndividual
Role
Chief Executive Officer
Group CEO
Shares69,749
Max PriceUK£19.82
SellUK£725,90129 Jul 19
Adam Meyers
EntityIndividual
Role
Member of the Board of Directors
Member of Executive Board & Director
Shares36,707
Max PriceUK£19.82
SellUK£280,69029 Jul 19
Jennifer Ward
EntityIndividual
Role
Member of the Board of Directors
Group Talent & Communications Director
Shares14,180
Max PriceUK£19.82
SellUK£316,63529 Jul 19
Paul Simmons
EntityIndividual
Role
Member of Management Board
Chief Executive of Infrastructure Safety Sector & Member of Executive Management Board
Shares16,000
Max PriceUK£19.82

Ownership Breakdown


Management Team

  • Andrew Williams (52yo)

    Group CEO

    • Tenure: 14.7yrs
    • Compensation: UK£3.45m
  • Adam Meyers (57yo)

    Member of Executive Board & Director

    • Tenure: 11.5yrs
    • Compensation: UK£1.69m
  • Catherine Michel

    CTO & Member of Executive Board

    • Tenure: 0.08yrs
  • Roo De Soyza

    General Counsel

    • Tenure: 0.08yrs
  • Charles King

    Head of Investor Relations

    • Tenure: 0yrs
  • Laura Stoltenberg (45yo)

    Sector Chief Executive of Medical & Environmental and Member of Executive Board

    • Tenure: 0yrs
  • Marc Ronchetti

    Group CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£1.14m
  • Jennifer Ward

    Group Talent & Communications Director

    • Tenure: 3.1yrs
    • Compensation: UK£1.24m
  • Paul Simmons

    Chief Executive of Infrastructure Safety Sector & Member of Executive Management Board

    • Tenure: 3.3yrs
  • Inken Braunschmidt

    Chief Innovation & Digital Officer and Member of Executive Board

    • Tenure: 2.3yrs

Board Members

  • Daniela Soares (49yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: UK£57.00k
  • Tony Rice (67yo)

    Senior Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£77.00k
  • Paul Walker (62yo)

    Non-Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: UK£250.00k
  • Andrew Williams (52yo)

    Group CEO

    • Tenure: 14.7yrs
    • Compensation: UK£3.45m
  • Adam Meyers (57yo)

    Member of Executive Board & Director

    • Tenure: 11.5yrs
    • Compensation: UK£1.69m
  • Roy Twite (52yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£57.00k
  • Jo Harlow (57yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£57.00k
  • Marc Ronchetti

    Group CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£1.14m
  • Carole Cran

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£72.00k
  • Jennifer Ward

    Group Talent & Communications Director

    • Tenure: 3.1yrs
    • Compensation: UK£1.24m

Company Information

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


Key Information

  • Name: Halma plc
  • Ticker: HLMA
  • Exchange: LSE
  • Founded: 1894
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£6.880b
  • Shares outstanding: 379.27m
  • 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 Proc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:32
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
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.