OTCPK:HLMA.F

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 8.18% per year

Earnings have grown 12.6% per year over the past 5 years

Risk Analysis

No risks detected for HLMA.F from our risk checks.


Snowflake Analysis

Flawless balance sheet with limited growth.


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.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

HLMA.F

-0.1%

US Electronic

0.6%

US Market


1 Year Return

50.6%

HLMA.F

29.0%

US Electronic

24.6%

US Market

Return vs Industry: HLMA.F exceeded the US Electronic industry which returned 30.2% over the past year.

Return vs Market: HLMA.F exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

HLMA.FIndustryMarket
7 Day0.4%-0.1%0.6%
30 Day1.4%1.9%3.0%
90 Day16.0%9.4%10.6%
1 Year50.6%50.6%30.3%29.0%27.3%24.6%
3 Year159.5%159.5%48.8%44.6%50.5%40.8%
5 Year163.2%163.2%88.8%79.2%78.9%59.1%

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?

44.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLMA.F ($27.44) is trading above our estimate of fair value ($11.31)

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


Price To Earnings Ratio

PE vs Industry: HLMA.F is poor value based on its PE Ratio (44.3x) compared to the Electronic industry average (21.2x).

PE vs Market: HLMA.F is poor value based on its PE Ratio (44.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HLMA.F is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: HLMA.F is overvalued based on its PB Ratio (7.5x) compared to the US 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 12 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLMA.F's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: HLMA.F's earnings (8.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: HLMA.F's revenue (5.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: HLMA.F's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLMA.F's Return on Equity is forecast to be high in 3 years time (20.5%)


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: HLMA.F has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: HLMA.F earnings growth over the past year (7.8%) underperformed the Electronic industry 53.6%.


Return on Equity

High ROE: HLMA.F'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: HLMA.F's short term assets (£527.0M) exceed its short term liabilities (£206.5M).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: HLMA.F'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?

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: HLMA.F's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HLMA.F's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Andrew Williams (52yo)

14.9yrs

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 ($USD4.48M) is below average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

2.5yrs

Average Tenure

49yo

Average Age

Experienced Management: HLMA.F's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: HLMA.F's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$392,20029 Jul 19
Paul Simmons
EntityIndividual
Role
Member of Management Board
Chief Executive of Infrastructure Safety Sector & Member of Executive Management Board
Shares16,000
Max PriceUS$24.54
SellUS$347,67729 Jul 19
Jennifer Ward
EntityIndividual
Role
Member of the Board of Directors
Group Talent & Communications Director
Shares14,180
Max PriceUS$24.54
SellUS$1,709,75229 Jul 19
Andrew Williams
EntityIndividual
Role
Chief Executive Officer
Group CEO
Shares69,749
Max PriceUS$24.54
SellUS$899,13829 Jul 19
Adam Meyers
EntityIndividual
Role
Member of the Board of Directors
Member of Executive Board & Director
Shares36,707
Max PriceUS$24.54

Ownership Breakdown

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


Management Team

  • Andrew Williams (52yo)

    Group CEO

    • Tenure: 14.9yrs
    • Compensation: UK£3.45m
  • Adam Meyers (57yo)

    Member of Executive Board & Director

    • Tenure: 11.8yrs
    • Compensation: UK£1.69m
  • Catherine Michel (46yo)

    CTO & Member of Executive Board

    • Tenure: 0.3yrs
  • Roo De Soyza

    General Counsel

    • Tenure: 0.3yrs
  • Charles King

    Head of Investor Relations

    • Laura Stoltenberg (45yo)

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

      • Tenure: 0.3yrs
    • Marc Ronchetti

      Group CFO & Executive Director

      • Tenure: 1.5yrs
      • Compensation: UK£1.14m
    • Jennifer Ward

      Group Talent & Communications Director

      • Tenure: 3.3yrs
      • Compensation: UK£1.24m
    • Paul Simmons

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

      • Tenure: 3.5yrs
    • Inken Braunschmidt

      Chief Innovation & Digital Officer and Member of Executive Board

      • Tenure: 2.5yrs

    Board Members

    • Daniela Soares (49yo)

      Independent Non-Executive Director

      • Tenure: 8.2yrs
      • Compensation: UK£57.00k
    • Tony Rice (67yo)

      Senior Independent Director

      • Tenure: 4.5yrs
      • Compensation: UK£77.00k
    • Paul Walker (62yo)

      Non-Executive Chairman

      • Tenure: 6.5yrs
      • Compensation: UK£250.00k
    • Andrew Williams (52yo)

      Group CEO

      • Tenure: 14.9yrs
      • Compensation: UK£3.45m
    • Adam Meyers (57yo)

      Member of Executive Board & Director

      • Tenure: 11.8yrs
      • Compensation: UK£1.69m
    • Roy Twite (52yo)

      Independent Non-Executive Director

      • Tenure: 5.5yrs
      • Compensation: UK£57.00k
    • Jo Harlow (57yo)

      Independent Non-Executive Director

      • Tenure: 3.3yrs
      • Compensation: UK£57.00k
    • Marc Ronchetti

      Group CFO & Executive Director

      • Tenure: 1.5yrs
      • Compensation: UK£1.14m
    • Carole Cran

      Independent Non-Executive Director

      • Tenure: 4yrs
      • Compensation: UK£72.00k
    • Jennifer Ward

      Group Talent & Communications Director

      • Tenure: 3.3yrs
      • 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.F
    • Exchange: OTCPK
    • Founded: 1894
    • Industry: Electronic Equipment and Instruments
    • Sector: Tech
    • Market Cap: UK£8.033b
    • Listing Market Cap: UK£10.553b
    • 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 Analysis2020/01/22 23:56
    End of Day Share Price2020/01/22 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.