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Halma PLC (GB:HLMA)
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Halma plc (HLMA) AI Stock Analysis

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GB:HLMA

Halma plc

(LSE:HLMA)

Rating:80Outperform
Price Target:
3,718.00p
▲(13.28% Upside)
Halma plc's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's consistent revenue growth, robust profitability, and effective cash flow management position it well for future opportunities. Technical indicators suggest a positive trend, although the high P/E ratio indicates potential overvaluation. The positive sentiment from the earnings call, highlighting strategic growth and successful acquisitions, further supports the stock's strong position.
Positive Factors
Acquisition
The acquisition of Brownline is funded from Halma's existing facilities, demonstrating financial stability.
Financial Guidance
Halma has made good progress with their organic growth and maintained their guidance for the fiscal year.
Revenue Growth
Avo Photonics is expected to grow to approximately 17% of group revenue, up from 15%.
Negative Factors
Analyst Recommendation
Analyst retains an Underperform recommendation, albeit with an increased price target.
Customer Concentration Risk
There is a continued belief that the market mis-prices the single customer concentration risk.

Halma plc (HLMA) vs. iShares MSCI United Kingdom ETF (EWC)

Halma plc Business Overview & Revenue Model

Company DescriptionHalma plc is a global group of life-saving technology companies headquartered in the UK. It operates primarily in sectors such as Health & Safety, Environmental Protection, and Infrastructure Safety. Halma's core products and services encompass a wide range of technologies, including gas detection systems, water quality monitoring solutions, and safety devices that protect people and assets in various environments. The company focuses on innovative solutions that enhance safety and sustainability across multiple industries.
How the Company Makes MoneyHalma generates revenue through the sale of its diverse range of technological products and services, which are primarily sold to industries including healthcare, manufacturing, and utilities. The company utilizes a decentralized business model, allowing its subsidiaries to operate with a degree of autonomy while benefiting from shared resources and expertise. Key revenue streams include direct sales of safety equipment, ongoing maintenance services, and recurring revenues from long-term contracts. Additionally, Halma has established significant partnerships with other technology firms and industry leaders, which enhance its product offerings and market reach, thereby contributing to its earnings.

Halma plc Earnings Call Summary

Earnings Call Date:Jun 12, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenue and profit growth, underpinned by strategic investments and successful acquisitions. The Environmental & Analysis sector, particularly Photonics, showed exceptional growth. Despite currency headwinds and mixed performance in the Water Analysis and Treatment subsector, the company maintained robust cash conversion and dividend growth. The sentiment is primarily positive, supported by a resilient performance in the Healthcare sector and a significant M&A strategy.
Q4-2025 Updates
Positive Updates
Record Revenue and Profit Growth
Achieved record revenue and profit for the 22nd consecutive year. Revenue increased by 11% and EBIT by 15%, with a margin increase of 80 basis points to 21.6%.
Strong Cash Conversion and Dividend Growth
Cash conversion was at 112%, well above the 90% target, and this financial performance supports a 46th consecutive year of dividend growth with an increase of 7%.
Significant Growth in Environmental & Analysis Sector
The Environmental & Analysis sector showed impressive performance with 18% reported growth and 19% organic growth, driven by exceptional growth in Photonics and recovery in spectroscopy markets.
Successful M&A Strategy
Completed 7 acquisitions during the year, contributing 3.5% of profit, with a healthy pipeline of potential acquisitions across all sectors.
Strong Performance in Safety Sector
The Safety sector delivered strong revenue growth of 8% organically, with a double-digit increase in profit and a margin increase of 90 basis points to 24.2%.
Resilient Healthcare Sector
Healthcare sector showed improvement in the second half of the year with all subsectors delivering organic revenue and profit growth.
Negative Updates
Currency Headwinds
Experienced a translational currency headwind of 1.6% due to the strengthening of sterling, with an expected headwind of around 4% in FY '26.
Mixed Performance in Water Analysis and Treatment
Water infrastructure saw a decline due to a slow start to utility companies' capital projects at the beginning of the U.K. AMP cycle.
Challenges in Healthcare Sector
Despite a recovery in the second half, the Healthcare sector faced a challenging market backdrop and regulatory debates in the U.S.
Company Guidance
In the fiscal year 2025, Halma delivered another record-breaking performance, marking its 22nd consecutive year of profit growth. Revenue increased by 11% to GBP 2.2 billion, and EBIT grew by 15%, with the EBIT margin rising 80 basis points to 21.6%. ROTIC also improved by 60 basis points, reaching 15%. The company maintained a robust cash conversion rate of 112%, significantly surpassing the target of 90%, which, alongside GBP 157 million spent on acquisitions, facilitated substantial reinvestment in R&D, accounting for 4.8% of group revenues. The Environmental & Analysis sector achieved remarkable growth, with organic revenue increasing by 19%, driven by strong demand in Photonics and Optical Analysis. Despite challenges in the Healthcare sector, a recovery in the second half led to a 4% increase in profit and a margin improvement to 22.9%. Looking ahead to FY '26, Halma anticipates upper single-digit organic revenue growth, particularly due to robust Photonics performance, and expects its adjusted EBIT margin to be modestly above the midpoint of its target range of 19% to 23%. Additionally, the company announced its 46th consecutive year of dividend growth.

Halma plc Financial Statement Overview

Summary
Halma plc exhibits a strong financial profile with consistent revenue growth, robust profitability, and solid cash flow generation. The company has effectively managed its leverage while enhancing its equity base, offering stability and growth potential. Despite some increase in liabilities, the company maintains a strong financial position, making it well-positioned to capitalize on future opportunities within the conglomerates industry.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.25B2.03B1.85B1.53B1.32B
Gross Profit1.13B1.01B877.90M724.30M613.60M
EBITDA537.30M476.70M411.30M401.80M354.00M
Net Income296.40M268.80M234.50M244.40M203.40M
Balance Sheet
Total Assets3.26B3.00B2.79B2.20B1.88B
Cash, Cash Equivalents and Short-Term Investments313.20M142.70M169.50M157.40M134.10M
Total Debt849.00M795.90M766.20M432.20M390.30M
Total Liabilities1.36B1.26B1.19B792.80M709.60M
Stockholders Equity1.90B1.74B1.60B1.40B1.17B
Cash Flow
Free Cash Flow433.00M333.40M195.30M189.40M226.20M
Operating Cash Flow492.40M385.00M241.20M229.40M268.40M
Investing Cash Flow-163.90M-287.50M-369.60M-134.90M-65.00M
Financing Cash Flow-155.10M-119.70M138.50M-73.70M-173.50M

Halma plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3282.00
Price Trends
50DMA
3219.97
Positive
100DMA
3017.83
Positive
200DMA
2879.36
Positive
Market Momentum
MACD
18.42
Positive
RSI
55.48
Neutral
STOCH
77.09
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 3282 is above the 20-day moving average (MA) of 3258.70, above the 50-day MA of 3219.97, and above the 200-day MA of 2879.36, indicating a bullish trend. The MACD of 18.42 indicates Positive momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.09 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£12.51B41.5316.30%0.70%10.52%10.19%
77
Outperform
£7.35B21.1129.71%3.34%1.14%17.74%
73
Outperform
£7.29B43.4918.41%1.11%15.75%44.11%
71
Outperform
£5.33B33.2514.19%2.29%0.10%-15.33%
67
Neutral
£8.16B15.9317.98%2.75%1.92%0.50%
65
Neutral
$2.63B15.3515.18%3.65%0.27%30.08%
64
Neutral
£8.98B35.135.93%2.11%-1.58%-34.64%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HLMA
Halma plc
3,282.00
698.74
27.05%
GB:BNZL
Bunzl plc
2,490.00
-967.43
-27.98%
GB:DPLM
Diploma
5,420.00
1,030.58
23.48%
GB:ITRK
Intertek
4,692.00
-76.70
-1.61%
GB:RTO
Rentokil Initial
356.00
-114.74
-24.37%
GB:SPX
Spirax Sarco Engineering
7,265.00
-230.81
-3.08%

Halma plc Corporate Events

Shareholder MeetingsDividendsBusiness Operations and Strategy
Halma plc Successfully Passes All AGM Resolutions
Positive
Jul 24, 2025

Halma plc announced the successful passing of all resolutions at its Annual General Meeting held on July 24, 2025. The resolutions included both ordinary and special resolutions, covering topics such as the approval of the annual report, declaration of dividends, and various board elections and re-elections. The approval of these resolutions reflects strong shareholder support and is expected to positively impact the company’s governance 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.

Other
Halma plc Announces Directors’ Share Transactions
Neutral
Jun 30, 2025

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.

Shareholder Meetings
Halma plc Addresses Typographical Error in AGM Proxy Form
Neutral
Jun 25, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Halma plc Announces Executive Share Transactions
Positive
Jun 24, 2025

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.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Halma plc Releases 2025 Annual Report and AGM Notice
Neutral
Jun 20, 2025

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.

Regulatory Filings and Compliance
Halma plc Directors’ Share Purchases Signal Confidence
Positive
Jun 18, 2025

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.

DividendsFinancial Disclosures
Halma plc Reports Strong Full-Year Results and Dividend Increase
Positive
Jun 12, 2025

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.

Executive/Board Changes
Halma Appoints Hudson La Force as Independent Non-Executive Director
Neutral
May 16, 2025

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.

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.Date of analysis: Aug 19, 2025