Halma plc (HLMA) AI Stock Analysis

• Market Cap: £12.03B
• Dividend Yield: 0.89%
• Average Volume (3M): 616.14K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 0.89
• Revenue Growth: 10.52%
• EPS Growth: 10.19%
• Country: UK
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Conglomerates
• EPS (TTM): 0.51
• Shares Outstanding: 379,645,360
• 10 Day Avg. Volume: 429,797
• 30 Day Avg. Volume: 616,139
• PEG Ratio: 15.49
• Price to Book (P/B): 6.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,933.73
• Price Target Upside: -9.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: 37.00p ▼(-98.86%Downside)

Halma plc scores well due to its strong financial performance and positive earnings call, which highlighted robust growth and strategic investments. Technical analysis suggests upward momentum, although the valuation indicates potential overvaluation. Corporate events reinforce confidence but are already reflected in the earnings call.

Positive Factors

Financial Performance

Halma has upgraded its full-year margin guidance to be 'modestly above' 21%.

Revenue Growth

Avo Photonics is expected to grow to approximately 17% of group revenue, up from 15%.

Negative Factors

Customer Concentration Risk

There is a continued belief that the market mis-prices the single customer concentration risk.

M&A Activity

The M&A activity has been low relative to previous years, with just £158m directed to 7 acquisitions.

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, specialist fire suppression, elevator safety, security sensors, people and vehicle flow technologies, specialized interlocks that control critical processes safely, and explosion protection and corrosion monitoring systems. This segment serves elevator safety, fire suppression, people and vehicle flow, fire detection, pressure management, industrial access control, and safe storage and transfer markets. The Environmental & Analysis segment offers optical, optoelectronic, and spectral imaging systems; water, air and gases monitoring technologies; instruments that detect hazardous gases and analyses air quality; and systems for water analysis and treatment. It serves the optical analysis, water analysis and treatment, gas detection, and environmental monitoring markets. The Medical segment provides critical fluidic components used by medical diagnostics and original equipment manufacturers; laboratory devices and systems that provide information to understand patient health and enable providers to make decisions across the continuum of care; technologies and solutions to enable in-vitro diagnostic systems and life-science discoveries and development; and technologies that enable positive outcomes across clinical specialties. This segment serves the life sciences, health assessment, and therapeutic solutions market. The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.

How the Company Makes Money

Halma plc makes money through the sale of its specialized safety, health, and environmental technologies across its various sectors. The company's revenue model is primarily based on the manufacture and distribution of high-quality products that address critical needs in hazard detection and life protection, environmental monitoring, and medical diagnostics. Key revenue streams include sales of fire and gas detection systems, water leak detection technologies, and medical devices. Halma also benefits from strategic acquisitions of innovative companies that complement its existing product lines and expand its market reach. These acquisitions often bring in additional revenue and provide opportunities for cross-selling products and services across different sectors. The company's emphasis on R&D and innovation ensures a steady flow of new products, which helps maintain its competitive edge and drives revenue growth. Halma's global presence and diverse customer base across various industries further contribute to its stable earnings.

Halma plc Financial Statement Overview

Summary

Halma plc exhibits strong financial performance with consistent revenue growth, robust profitability, and solid cash flow generation. The income statement shows a revenue growth rate of 10.51% and a net profit margin of 13.18%, indicating efficient cost management. The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.45, while cash flow performance is impressive with a free cash flow growth rate of 29.88%.

Income Statement

Halma plc has demonstrated a strong financial performance with consistent revenue growth, reflected by a revenue growth rate from 2024 to 2025 of 10.51%. The gross profit margin is robust at 50.43% for 2025. The company also maintains a solid net profit margin of 13.18%, indicating efficient cost management. EBIT and EBITDA margins are healthy at 18.21% and 23.90% respectively, showcasing strong operational performance. The company's strategy appears to be effectively driving growth and profitability.

Balance Sheet

The balance sheet of Halma plc indicates a stable financial position with a debt-to-equity ratio of 0.45, showing a manageable level of leverage. The return on equity is strong at 15.61%, reflecting efficient use of shareholder funds to generate profits. The equity ratio stands at 58.28%, indicating a solid equity base compared to total assets. While the company has increased its total liabilities over time, the equity base has strengthened, maintaining financial stability.

Cash Flow

Halma plc's cash flow performance is impressive, with a significant free cash flow growth rate of 29.88% from 2024 to 2025, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.66, demonstrating efficient conversion of income into cash. The free cash flow to net income ratio is 1.46, highlighting the company's ability to generate free cash flow relative to its net income. Overall, the company's cash flow health supports its growth and operational investments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.25B	2.03B	1.85B	1.53B	1.32B
Gross Profit	1.13B	1.01B	877.90M	724.30M	613.60M
EBITDA	537.30M	476.70M	411.30M	401.80M	354.00M
Net Income	296.40M	268.80M	234.50M	244.40M	203.40M
Balance Sheet
Total Assets	3.26B	3.00B	2.79B	2.20B	1.88B
Cash, Cash Equivalents and Short-Term Investments	313.20M	142.70M	169.50M	157.40M	134.10M
Total Debt	849.00M	795.90M	766.20M	432.20M	390.30M
Total Liabilities	1.36B	1.26B	1.19B	792.80M	709.60M
Stockholders Equity	1.90B	1.74B	1.60B	1.40B	1.17B
Cash Flow
Free Cash Flow	433.00M	333.40M	195.30M	189.40M	226.20M
Operating Cash Flow	492.40M	385.00M	241.20M	229.40M	268.40M
Investing Cash Flow	-163.90M	-287.50M	-369.60M	-134.90M	-65.00M
Financing Cash Flow	-155.10M	-119.70M	138.50M	-73.70M	-173.50M

Halma plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3244.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3244 is above the 20-day moving average (MA) of 3186.30, above the 50-day MA of 3055.66, and above the 200-day MA of 2773.06, indicating a bullish trend. The MACD of 49.16 indicates Positive momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HLMA.

Halma plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRK	80 Outperform	£7.67B	22.76	25.35%	4.20%	1.94%	16.26%
HLMA	79 Outperform	£12.03B	41.32	16.30%	0.89%	10.52%	10.19%
DPLM	75 Outperform	£6.61B	39.47	18.41%	0.37%	15.75%	44.11%
BNZL	73 Outperform	£7.41B	15.37	17.39%	4.73%	-0.18%	-4.60%
SPX	72 Outperform	£4.43B	23.69	16.16%	2.91%	-1.03%	4.06%
RTO	69 Neutral	£8.57B	28.49	7.38%	2.56%	1.13%	-19.48%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%

Halma plc Corporate Events

Halma plc Announces Directors’ Share Transactions

Halma plc has announced share transactions involving its directors and Persons Discharging Managerial Responsibilities (PDMRs). The transactions include the vesting of Executive Share Plan Awards and the sale of shares to cover tax obligations. These transactions, conducted on June 26 and 27, 2025, reflect the company’s ongoing commitment to aligning its leadership’s interests with shareholder value, potentially impacting investor confidence and market perception.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £31.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma plc Addresses Typographical Error in AGM Proxy Form

Halma plc announced a minor typographical error in the Form of Proxy for its upcoming Annual General Meeting. The company assured shareholders that the error does not affect the validity of the resolutions and that previously submitted proxies remain valid. A revised Form of Proxy is available online for those who wish to amend their submissions. This announcement ensures transparency and maintains shareholder confidence ahead of the AGM.

The most recent analyst rating on (GB:HLMA) stock is a Sell with a £2490.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma plc Announces Executive Share Transactions

Halma plc announced transactions involving its directors and persons discharging managerial responsibilities, who have been granted performance share awards and deferred bonus awards under the Executive Share Plan. This move reflects the company’s commitment to aligning its leadership’s interests with long-term shareholder value, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (GB:HLMA) stock is a Hold with a £32.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma plc Releases 2025 Annual Report and AGM Notice

Halma plc has released its Annual Report and Accounts for 2025, along with the Notice of Annual General Meeting, which are now available on the company’s website and the National Storage Mechanism. This announcement underscores Halma’s commitment to transparency and regulatory compliance, providing stakeholders with essential information about the company’s financial performance and strategic direction.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £31.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma plc Directors’ Share Purchases Signal Confidence

Halma plc has disclosed transactions by two of its non-executive directors, Hudson La Force and Barbara Thoralfsson, involving the purchase of company shares and American Depositary Receipts (ADRs). These transactions, conducted in compliance with the Market Abuse Regulation, reflect the directors’ confidence in the company’s future performance and may positively influence stakeholder perception and market positioning.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £31.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma plc Reports Strong Full-Year Results and Dividend Increase

Halma plc announced its full-year results for the period ending March 31, 2025, highlighting a proposed 7% increase in the final dividend to 14.12p per share. This increase reflects the company’s robust performance and commitment to shareholder returns. The final dividend is subject to shareholder approval at the upcoming Annual General Meeting. Halma continues to strengthen its market position with significant operations in the UK, Europe, the USA, and Asia Pacific, and has been recognized as one of Britain’s Most Admired Companies for six consecutive years.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £31.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma Appoints Hudson La Force as Independent Non-Executive Director

Halma plc has appointed Hudson La Force as an independent non-executive Director, effective 2 June 2025. Hudson’s extensive industrial and international experience, including his previous role as CEO of W. R. Grace & Co., is expected to enhance the board’s capabilities, particularly with his insights from the US and China markets.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £31.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.