Halma plc (HLMA) AI Stock Analysis

• Market Cap: £14.81B
• Dividend Yield: 0.67%
• Average Volume (3M): 658.45K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.92
• Revenue Growth: 11.74%
• EPS Growth: 20.98%
• Country: UK
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.55
• Shares Outstanding: 379,645,360
• 10 Day Avg. Volume: 509,412
• 30 Day Avg. Volume: 658,450
• PEG Ratio: 2.92
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 4.34
• P/FCF Ratio: 22.51
• 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: £4,142.00
• Price Target Upside: 5.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): £2.57B

• Rating: 78 Outperform
• Price Target: 4,585.00 p ▲(16.90% Upside)
• Action: Upgraded Date: 12/07/25
• Date: Action: Upgraded 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

Diversified mission-critical business model

Halma's portfolio of specialist operating companies sells mission-critical, regulated devices and systems across healthcare, environmental monitoring and safety. Embedded products, long lifecycles, and aftermarket spares/services generate repeat revenue and reduce cyclical volatility, supporting durable cash flow and stable end-market exposure.

Strong cash generation

High free cash flow growth and strong cash conversion ratios indicate robust ability to convert profits into cash. This supports continued R&D, bolt-on M&A, and dividends without compromising balance sheet strength, giving management flexibility to fund durable growth initiatives over the next several quarters.

Robust margins and reinvestment

Margin expansion across all three sectors, alongside healthy reported gross and net margins, shows scalable pricing and operational leverage. Combined with targeted reinvestment (R&D and acquisitions), sustained higher margins increase cash returns on investment and underpin upgraded guidance and structural profitability improvement.

Negative Factors

Below-target cash conversion

Cash conversion below the company's 90% KPI reflects elevated working capital and staging of acquisition/R&D spend. Sustained suboptimal cash conversion can constrain internal funding for operations or acquisitions, and may require careful working-capital management to avoid pressuring liquidity during growth investments.

Translational currency headwind

A material translational FX headwind reduces reported revenue and profit growth even if underlying operations are healthy. Persistent currency weakness can mute headline performance and complicate targets and planning for the coming quarters, requiring ongoing management of FX exposures and potential margin pressure.

Mixed execution in sub-sectors and US market

Uneven end-market trends and customer project delays create timing risk for revenue recognition and can introduce volatility into organic growth. Exposure to project-driven sales cycles, especially in the U.S., means short-term operational setbacks can persistently affect segment growth rates until project pipelines normalize.

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 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 support services, and entering into long-term contracts with clients. Key revenue streams come from its subsidiaries that specialize in different areas, such as safety and environmental technology, where they offer tailored solutions to various industries including healthcare, manufacturing, and construction. Additionally, Halma benefits from strategic partnerships with organizations and agencies that enhance its market reach and innovation capabilities. Continuous investment in research and development allows the company to introduce new products, thereby driving growth and increasing its revenue potential over time.

Halma plc Financial Statement Overview

Summary

Halma plc exhibits strong financial performance with consistent revenue growth, robust profitability, and solid cash flow generation. The company effectively manages its leverage while enhancing its equity base, offering stability and growth potential.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 3922.00
• 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 3922 is below the 20-day moving average (MA) of 3947.30, above the 50-day MA of 3740.56, and above the 200-day MA of 3431.56, indicating a neutral trend. The MACD of 60.85 indicates Positive momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 22.39 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
HLMA	78 Outperform	£14.81B	17.44	18.61%	0.67%	11.74%	20.98%
RS1	74 Outperform	£3.07B	8.02	11.65%	3.58%	-2.44%	-6.43%
IMI	74 Outperform	£6.83B	20.02	24.91%	1.29%	-0.32%	-3.96%
DPLM	66 Neutral	£6.97B	38.47	19.69%	1.13%	11.82%	42.93%
SMIN	66 Neutral	£8.08B	29.17	13.46%	1.93%	-6.93%	18.57%
ITRK	65 Neutral	£5.97B	21.21	29.71%	3.44%	1.14%	17.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Halma plc Corporate Events

Halma Director Hudson La Force Buys US$100,000 of Company ADRs

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 consideration of US$100,081.00. The director share purchase, notified under Market Abuse Regulation requirements, signals additional personal financial commitment from a board member and provides transparency for investors monitoring insider dealings and governance practices at the company.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £4100.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma CTO Catherine Michel Sells Shares Worth Over £535,000

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 on 9 January 2026 on the London Stock Exchange, is being reported in line with Market Abuse Regulation requirements, underscoring the company’s adherence to regulatory standards on senior management share dealings and providing investors with visibility into changes in insider holdings.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £4100.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma strengthens industrial safety portfolio with €72.5m acquisition of Italy’s Safetec

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 €72.5m in cash on a cash- and debt-free basis. Safetec, which is forecast to generate around €30m in revenue in the year to 31 December 2025 and has a strong presence in the Middle East, Europe and Africa, will operate as a standalone business within Halma’s Safety sector under its existing management, bolstering Halma’s engineering capabilities and extending its reach in complex industrial safety markets while providing a platform to accelerate Safetec’s international growth.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £4100.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.