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HLMA

HalmaLSE:HLMA Stock Report

Market Cap

UK£10.9b

7D

5.0%

1Y

16.6%

Updated

16 Oct, 2021

Data

Company Financials +
HLMA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends0/6

HLMA Overview

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

Halma Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Halma
Historical stock prices
Current Share PriceUK£28.85
52 Week HighUK£21.58
52 Week LowUK£31.84
Beta0.36
1 Month Change-5.22%
3 Month Change4.11%
1 Year Change16.57%
3 Year Change122.78%
5 Year Change172.68%
Change since IPO4,311.81%

Recent News & Updates

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
7D5.0%4.5%1.7%
1Y16.6%16.9%22.9%

Return vs Industry: HLMA matched the UK Electronic industry which returned 16.9% over the past year.

Return vs Market: HLMA underperformed the UK Market which returned 22.9% over the past year.

Price Volatility

Is HLMA's price volatile compared to industry and market?
HLMA volatility
HLMA Beta0.36
Industry Beta0.62
Market Beta1

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
18947,120Andrew 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£10.93b
Earnings (TTM)UK£203.40m
Revenue (TTM)UK£1.32b

53.7x

P/E Ratio

8.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLMA income statement (TTM)
RevenueUK£1.32b
Cost of RevenueUK£662.30m
Gross ProfitUK£655.90m
ExpensesUK£452.50m
EarningsUK£203.40m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 18, 2021

Earnings per share (EPS)0.54
Gross Margin49.76%
Net Profit Margin15.43%
Debt/Equity Ratio27.9%

How did HLMA perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

33%

Payout Ratio

Valuation

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

53.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLMA (£28.85) is trading above our estimate of fair value (£17.71)

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 (53.7x) compared to the UK Electronic industry average (36x).

PE vs Market: HLMA is poor value based on its PE Ratio (53.7x) compared to the UK market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: HLMA is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: HLMA is overvalued based on its PB Ratio (9.4x) compared to the GB Electronic industry average (2.6x).


Future Growth

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

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLMA's forecast earnings growth (7.8% per year) is above the savings rate (0.9%).

Earnings vs Market: HLMA's earnings (7.8% per year) are forecast to grow slower than the UK market (13% per year).

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

Revenue vs Market: HLMA's revenue (7.6% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: HLMA's revenue (7.6% 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 (18.4%).


Past Performance

How has Halma performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLMA has high quality earnings.

Growing Profit Margin: HLMA's current net profit margins (15.4%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: HLMA's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: HLMA's earnings growth over the past year (10.3%) is below its 5-year average (11.5% per year).

Earnings vs Industry: HLMA earnings growth over the past year (10.3%) underperformed the Electronic industry 10.3%.


Return on Equity

High ROE: HLMA's Return on Equity (17.4%) is considered low.


Financial Health

How is Halma's financial position?


Financial Position Analysis

Short Term Liabilities: HLMA's short term assets (£574.1M) exceed its short term liabilities (£248.0M).

Long Term Liabilities: HLMA's short term assets (£574.1M) exceed its long term liabilities (£462.3M).


Debt to Equity History and Analysis

Debt Level: HLMA's debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: HLMA's debt to equity ratio has reduced from 46.5% to 27.9% over the past 5 years.

Debt Coverage: HLMA's debt is well covered by operating cash flow (85.3%).

Interest Coverage: HLMA's interest payments on its debt are well covered by EBIT (24.6x coverage).


Balance Sheet


Dividend

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

0.61%

Current Dividend Yield


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 (1.4%).

High Dividend: HLMA's dividend (0.61%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


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?

2.1yrs

Average management tenure


CEO

Andrew Williams (54 yo)

16.67yrs

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 ($USD4.17M) is about average for companies of similar size in the UK market ($USD3.87M).

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 (2.1 years average tenure).


Board Members

Experienced Board: HLMA'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: 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£10.927b
  • Shares outstanding: 378.75m
  • 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 Analysis2021/10/16 17:52
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
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.