Halma PLC (GB:HLMA)
LSE:HLMA
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Halma plc
(LSE:HLMA)
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Rating:78Outperform
Price Target:
4,585.00 p
▲(17.93% Upside)
Action:UpgradedDate:12/07/25
Halma plc's overall stock score reflects its strong financial performance and positive earnings call sentiment, supported by strategic corporate actions. However, the high valuation and modest dividend yield slightly temper the overall attractiveness.
Positive Factors
Cash generation
Halma's near-30% free cash flow growth and strong operating cash conversion (OCF/net income 1.66) demonstrate durable ability to convert earnings into cash. This supports ongoing R&D, bolt-on M&A, and shareholder returns without heavy reliance on external funding, strengthening financial flexibility.
Negative Factors
Cash conversion below KPI
A 79% cash conversion, below the 90% target, reflects heavy near-term cash absorption from R&D, acquisitions and working capital. If conversion remains depressed, it can constrain free cash available for strategic moves or dividends and reduce the margin of safety despite reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Halma's near-30% free cash flow growth and strong operating cash conversion (OCF/net income 1.66) demonstrate durable ability to convert earnings into cash. This supports ongoing R&D, bolt-on M&A, and shareholder returns without heavy reliance on external funding, strengthening financial flexibility.
Read all positive factors
Halma plc (HLMA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£14.69B
Dividend Yield0.67%
Average Volume (3M)658.45K
Price to Earnings (P/E)17.4
Beta (1Y)0.95
Revenue Growth11.74%
EPS Growth20.98%
CountryUK
Employees8,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.55
Shares Outstanding379,645,360
10 Day Avg. Volume509,412
30 Day Avg. Volume658,450
Financial Highlights & Ratios
PEG Ratio2.92
Price to Book (P/B)5.13
Price to Sales (P/S)4.34
P/FCF Ratio22.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£3,971.25Price Target Upside2.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.25
Revenue Forecast (FY)£2.85B
Halma plc Business Overview & Revenue Model
Company Description
Halma plc, through its subsidiaries, provides technology solutions in the safety, health, and environmental markets. It operates through three segments: Safety, Environmental & Analysis, and Medical. The Safety segment provides fire detection, spe...
How the Company Makes Money
Halma plc generates revenue through the sale of its diverse range of products and services across its operating sectors. The company has a multi-faceted revenue model that includes direct sales to customers, providing ongoing maintenance and suppo...
Halma plc Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance by Halma, with record half-year results, robust growth across sectors, significant investments, and a strong balance sheet. However, challenges such as cash conversion being below KPI and currency headwinds were noted. The strong positive aspects significantly outweighed the lowlights.Positive Updates
Record Half-Year Results
Halma reported another set of record half-year results for Fiscal Year 2026, with headline revenue growth of 15% and EBIT growth of 27%. Organic growth was strong across all sectors, particularly in Photonics.
Negative Updates
Cash Conversion Below KPI
Cash conversion was below the KPI at 79%, due to substantial investments in R&D, acquisitions, and working capital.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Half-Year Results
Halma reported another set of record half-year results for Fiscal Year 2026, with headline revenue growth of 15% and EBIT growth of 27%. Organic growth was strong across all sectors, particularly in Photonics.
Read all positive updates
Company Guidance
During the call, Halma reported strong financial results for the first half of the fiscal year 2026, driven by a diverse range of performance metrics across its sectors. The company achieved 15% headline revenue growth and a 27% increase in EBIT, with an organic revenue growth rate of 16.7%. Photonics significantly contributed to this growth, accounting for half of the organic increase. Halma maintained a robust margin of 22.3%, up by 160 basis points, and achieved a 16.2% return on capital, an increase of 190 basis points. Strategic investments totaled GBP 300 million, including GBP 60 million in R&D and GBP 130 million in acquisitions, supporting future growth. Despite a lower cash conversion rate of 79%, the company expects to align with its 90% KPI by year-end. Notably, Safety sector margins reached a historic high of 27%, with a 280 basis point increase. The Environmental & Analysis sector, excluding a one-off benefit, saw organic revenue and profit growth of 36% and 38%, respectively. Halma also upgraded its full-year guidance, anticipating mid-teens percentage organic constant currency revenue growth and an adjusted EBIT margin of around 22%.Halma plc Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 2.25B | 2.03B | 1.85B | 1.53B | 1.32B |
| Gross Profit | 32.95M | 1.13B | 1.01B | 877.90M | 724.30M | 613.60M |
| EBITDA | 450.10M | 537.30M | 475.50M | 410.60M | 373.40M | 353.30M |
| Net Income | 266.90M | 296.40M | 268.80M | 234.50M | 244.40M | 203.40M |
Balance Sheet | ||||||
| Total Assets | 3.34B | 3.26B | 3.00B | 2.79B | 2.20B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 222.90M | 313.20M | 142.70M | 169.50M | 157.40M | 134.10M |
| Total Debt | 863.50M | 849.00M | 795.90M | 766.20M | 432.20M | 390.30M |
| Total Liabilities | 1.35B | 1.36B | 1.26B | 1.19B | 792.80M | 709.60M |
| Stockholders Equity | 1.99B | 1.90B | 1.74B | 1.60B | 1.40B | 1.17B |
Cash Flow | ||||||
| Free Cash Flow | 289.80M | 433.00M | 333.40M | 195.30M | 189.40M | 226.20M |
| Operating Cash Flow | 329.30M | 492.40M | 385.00M | 241.20M | 229.40M | 268.40M |
| Investing Cash Flow | -252.90M | -163.90M | -286.30M | -369.60M | -134.90M | -65.00M |
| Financing Cash Flow | -172.80M | -155.10M | -119.70M | 138.50M | -73.70M | -173.50M |
Halma plc Technical Analysis
Positive
3888.00
Price Trends
3801.20
Positive
3678.15
Positive
3499.41
Positive
Market Momentum
-10.20
Negative
54.54
Neutral
84.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HLMA, the sentiment is Positive. The current price of 3888 is above the 20-day moving average (MA) of 3810.30, above the 50-day MA of 3801.20, and above the 200-day MA of 3499.41, indicating a bullish trend. The MACD of -10.20 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 84.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HLMA.
Halma plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £14.69B | 17.44 | 18.61% | 0.67% | 11.74% | 20.98% | |
74 Outperform | £2.65B | 8.02 | 11.47% | 3.58% | -2.44% | -6.43% | |
74 Outperform | £6.31B | 20.02 | 24.91% | 1.29% | -0.32% | -3.96% | |
73 Outperform | £8.35B | 38.47 | 14.17% | 1.13% | 11.82% | 42.93% | |
65 Neutral | £5.74B | 21.21 | 31.07% | 3.44% | 1.14% | 17.74% | |
64 Neutral | £7.22B | 15.58 | 13.46% | 1.93% | -6.93% | 18.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GB:HLMA
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3,888.00
1,403.84
56.51%
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Halma plc Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Halma on track for 23rd year of record profit as it ramps up acquisitions
Positive
Mar 12, 2026
Halma said it is on track to deliver its 23rd consecutive year of record adjusted profit, with broad‑based growth across its portfolio despite uncertain economic and geopolitical conditions. The group expects mid‑teens organic constant...
Regulatory Filings and Compliance
Halma Director Hudson La Force Buys US$100,000 of Company ADRs
Positive
Jan 13, 2026
Halma plc has disclosed that independent non-executive director Hudson La Force purchased 2,000 Halma American Depositary Receipts in an over-the-counter market transaction on 12 January 2026 at a price of US$50.0405 per ADR, for a total considera...
Regulatory Filings and Compliance
Halma CTO Catherine Michel Sells Shares Worth Over £535,000
Neutral
Jan 9, 2026
Halma plc disclosed that its Chief Technology Officer, Catherine Michel, has sold 14,586 ordinary shares in the company at a price of £36.68 per share, for a total consideration of approximately £535,014.48. The transaction, carried out ...
Business Operations and StrategyM&A Transactions
Halma strengthens industrial safety portfolio with €72.5m acquisition of Italy’s Safetec
Positive
Jan 9, 2026
Halma plc has agreed to acquire Italian firm Safetec Srl, a specialist in customised fire and gas safety systems for large-scale, high-risk industrial projects across sectors such as power generation, oil and gas and pharmaceuticals, for €72...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.