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HLMA

HalmaLSE:HLMA Stock Report

Market Cap

UK£11.3b

7D

-6.1%

1Y

33.9%

Updated

27 Nov, 2021

Data

Company Financials +
HLMA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends0/6

HLMA Stock Overview

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

Halma Competitors

Spectris

LSE:SXS

UK£3.9b

BAE Systems

LSE:BA.

UK£17.4b

Spirax-Sarco Engineering

LSE:SPX

UK£11.6b

Rolls-Royce Holdings

LSE:RR.

UK£10.1b

Price History & Performance

Summary of all time highs, changes and price drops for Halma
Historical stock prices
Current Share PriceUK£29.72
52 Week HighUK£31.89
52 Week LowUK£22.01
Beta0.36
1 Month Change-0.24%
3 Month Change-0.73%
1 Year Change33.87%
3 Year Change116.62%
5 Year Change223.22%
Change since IPO4,444.86%

Recent News & Updates

Nov 25
Robust Earnings May Not Tell The Whole Story For Halma (LON:HLMA)

Robust Earnings May Not Tell The Whole Story For Halma (LON:HLMA)

Halma plc ( LON:HLMA ) announced strong profits, but the stock was stagnant. Our analysis suggests that shareholders...

Oct 10
Should You Be Adding Halma (LON:HLMA) To Your Watchlist Today?

Should You Be Adding Halma (LON:HLMA) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 14
Returns On Capital At Halma (LON:HLMA) Have Hit The Brakes

Returns On Capital At Halma (LON:HLMA) Have Hit The Brakes

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

HLMAGB ElectronicGB Market
7D-6.1%-7.0%-3.0%
1Y33.9%19.6%11.7%

Return vs Industry: HLMA exceeded the UK Electronic industry which returned 19.6% over the past year.

Return vs Market: HLMA exceeded the UK Market which returned 11.7% over the past year.

Price Volatility

Is HLMA's price volatile compared to industry and market?
HLMA volatility
HLMA Average Weekly Movement3.2%
Electronic Industry Average Movement5.5%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: HLMA is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HLMA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18947,000Andrew Williamshttps://www.halma.com

Halma plc provides technology solutions in the safety, health, and environmental markets. It operates through 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 hazardous gases; and explosion protection and corrosion monitoring systems.

Halma Fundamentals Summary

How do Halma's earnings and revenue compare to its market cap?
HLMA fundamental statistics
Market CapUK£11.26b
Earnings (TTM)UK£261.90m
Revenue (TTM)UK£1.44b

43.0x

P/E Ratio

7.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLMA income statement (TTM)
RevenueUK£1.44b
Cost of RevenueUK£662.30m
Gross ProfitUK£774.70m
ExpensesUK£512.80m
EarningsUK£261.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.69
Gross Margin53.91%
Net Profit Margin18.22%
Debt/Equity Ratio26.9%

How did HLMA perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

26%

Payout Ratio

Does HLMA pay a reliable dividends?

See HLMA dividend history and benchmarks
When do you need to buy HLMA by to receive an upcoming dividend?
Halma dividend dates
Ex Dividend DateDec 23 2021
Dividend Pay DateFeb 04 2022
Days until Ex dividend24 days
Days until Dividend pay date67 days

Does HLMA pay a reliable dividends?

See HLMA dividend history and benchmarks

Valuation

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

42.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLMA (£29.72) is trading above our estimate of fair value (£19.76)

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 (43x) compared to the UK Electronic industry average (30.8x).

PE vs Market: HLMA is poor value based on its PE Ratio (43x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: HLMA is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: HLMA is overvalued based on its PB Ratio (8.8x) compared to the GB Electronic industry average (2.9x).


Future Growth

How is Halma forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLMA's forecast earnings growth (7.2% per year) is above the savings rate (0.9%).

Earnings vs Market: HLMA's earnings (7.2% per year) are forecast to grow slower than the UK market (12.7% per year).

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

Revenue vs Market: HLMA's revenue (7% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: HLMA's revenue (7% 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 low in 3 years time (17.8%).


Past Performance

How has Halma performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLMA has a large one-off gain of £55.0M impacting its September 30 2021 financial results.

Growing Profit Margin: HLMA's current net profit margins (18.2%) are higher than last year (13.6%).


Past Earnings Growth Analysis

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

Accelerating Growth: HLMA's earnings growth over the past year (48.2%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: HLMA earnings growth over the past year (48.2%) exceeded the Electronic industry 20.3%.


Return on Equity

High ROE: HLMA's Return on Equity (20.5%) is considered high.


Financial Health

How is Halma's financial position?


Financial Position Analysis

Short Term Liabilities: HLMA's short term assets (£608.5M) exceed its short term liabilities (£259.3M).

Long Term Liabilities: HLMA's short term assets (£608.5M) exceed its long term liabilities (£476.8M).


Debt to Equity History and Analysis

Debt Level: HLMA's net debt to equity ratio (16.6%) is considered satisfactory.

Reducing Debt: HLMA's debt to equity ratio has reduced from 45.4% to 26.9% over the past 5 years.

Debt Coverage: HLMA's debt is well covered by operating cash flow (73.5%).

Interest Coverage: HLMA's interest payments on its debt are well covered by EBIT (34.3x coverage).


Balance Sheet


Dividend

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

0.61%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 28 2021Ex Dividend DateDec 23 2021Dividend Pay DateFeb 04 202243 days from Ex DividendBuy in the next 24 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HLMA's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: HLMA's dividend (0.61%) is low compared to the top 25% of dividend payers in the UK market (4.15%).


Stability and Growth of Payments

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

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

2.8yrs

Average management tenure


CEO

Andrew Williams (54 yo)

16.75yrs

Tenure

UK£3,027,000

Compensation

Mr. Andrew John 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 FT...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD4.03M) is about average for companies of similar size in the UK market ($USD3.74M).

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


Leadership Team

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


Board Members

Experienced Board: HLMA's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HLMA insiders have only sold shares 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 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£11.257b
  • Shares outstanding: 378.77m
  • Website: https://www.halma.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 18:57
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.