LSE:HLMA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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

Rewards

Earnings are forecast to grow 5.42% per year

Earnings grew by 8.6% over the past year

Risk Analysis

No risks detected for HLMA from our risk checks.


Snowflake Analysis

Excellent balance sheet with acceptable 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

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


Market Performance


7 Day Return

-1.3%

HLMA

-0.8%

GB Electronic

0.1%

GB Market


1 Year Return

31.5%

HLMA

27.6%

GB Electronic

-15.4%

GB Market

Return vs Industry: HLMA exceeded the UK Electronic industry which returned 26.8% over the past year.

Return vs Market: HLMA exceeded the UK Market which returned -16.6% over the past year.


Shareholder returns

HLMAIndustryMarket
7 Day-1.3%-0.8%0.1%
30 Day8.2%9.1%1.1%
90 Day9.6%10.9%-2.0%
1 Year32.5%31.5%28.7%27.6%-12.1%-15.4%
3 Year111.9%106.1%46.7%40.9%-8.4%-19.7%
5 Year238.1%220.1%157.9%139.8%16.4%-9.7%

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?

50.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLMA (£24.44) is trading above our estimate of fair value (£7.44)

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 (50.2x) compared to the GB Electronic industry average (30x).

PE vs Market: HLMA is poor value based on its PE Ratio (50.2x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: HLMA is poor value based on its PEG Ratio (9.3x)


Price to Book Ratio

PB vs Industry: HLMA is overvalued based on its PB Ratio (8.1x) compared to the GB Electronic industry average (2.3x).


Next Steps

Future Growth

How is Halma forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLMA's forecast earnings growth (5.4% per year) is above the savings rate (1.2%).

Earnings vs Market: HLMA's earnings (5.4% per year) are forecast to grow slower than the UK market (24% per year).

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

Revenue vs Market: HLMA's revenue (4.6% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: HLMA's revenue (4.6% 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 (17.1%).


Next Steps

Past Performance

How has Halma performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLMA has high quality earnings.

Growing Profit Margin: HLMA's current net profit margins (13.8%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: HLMA's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: HLMA's earnings growth over the past year (8.6%) is below its 5-year average (13.3% per year).

Earnings vs Industry: HLMA earnings growth over the past year (8.6%) exceeded the Electronic industry -2.1%.


Return on Equity

High ROE: HLMA's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is Halma's financial position?


Financial Position Analysis

Short Term Liabilities: HLMA's short term assets (£575.2M) exceed its short term liabilities (£313.2M).

Long Term Liabilities: HLMA's short term assets (£575.2M) exceed its long term liabilities (£487.7M).


Debt to Equity History and Analysis

Debt Level: HLMA's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: HLMA's debt to equity ratio has increased from 26.6% to 37% over the past 5 years.

Debt Coverage: HLMA's debt is well covered by operating cash flow (60.8%).

Interest Coverage: HLMA's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLMA's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: HLMA's dividend (0.68%) is low compared to the top 25% of dividend payers in the UK market (5.25%).


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 (53 yo)

15.67yrs

Tenure

UK£3,786,000

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 ($USD4.94M) is about average for companies of similar size in the UK market ($USD4.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Williams
Group CEO15.67yrsUK£3.79m0.19%
£ 17.1m
Marc Ronchetti
Group CFO & Executive Director2.25yrsUK£1.65m0.0043%
£ 398.2k
Adam Meyers
Chief Executive of Safety Sector12.5yrsUK£1.83m0.092%
£ 8.5m
Jennifer Ward
Group Talent4.08yrsUK£1.61m0.018%
£ 1.6m
Inken Braunschmidt
Chief Innovation & Digital Officer and Member of Executive Board3.25yrsno data0.0042%
£ 388.9k
Catherine Michel
CTO & Member of Executive Board1.08yrsno data0.000040%
£ 3.7k
Laura Stoltenberg
Sector Chief Executive of Medical & Environmental and Member of Executive Board1yrno datano data
Funmi Adegoke
General Counsel & Member of Executive Board0.083yrno datano data
Charles King
Head of Investor Relationsno datano datano data
Mark Jenkins
Company Secretaryno datano datano data

2.8yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Andrew Williams
Group CEO15.67yrsUK£3.79m0.19%
£ 17.1m
Marc Ronchetti
Group CFO & Executive Director2.25yrsUK£1.65m0.0043%
£ 398.2k
Adam Meyers
Chief Executive of Safety Sector12.5yrsUK£1.83m0.092%
£ 8.5m
Jennifer Ward
Group Talent4.08yrsUK£1.61m0.018%
£ 1.6m
Daniela Soares
Independent Non-Executive Director8.92yrsUK£59.00k0.00065%
£ 60.2k
William Rice
Senior Independent Director5.25yrsUK£77.00k0.0045%
£ 413.9k
Paul Walker
Non-Executive Chairman7.25yrsUK£280.00k0.0079%
£ 733.4k
Roy Twite
Independent Non-Executive Director6.25yrsUK£59.00k0.0011%
£ 98.2k
Jo Harlow
Independent Non-Executive Director4yrsUK£59.00k0.00053%
£ 49.1k
Carole Cran
Independent Non-Executive Director4.75yrsUK£74.00k0.00053%
£ 49.1k

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: HLMA's board of directors are considered experienced (5.8 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.


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: HLMA
  • Exchange: LSE
  • Founded: 1894
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£9.260b
  • Shares outstanding: 378.88m
  • 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 through four segments: Process Safety, Infrastructure Safety, Environmental & Analysis, and Medical. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 20:59
End of Day Share Price2020/10/23 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.