Halma plc (HLMA) AI Stock Analysis

• Market Cap: £13.53B
• Dividend Yield: 0.66%
• Average Volume (3M): 658.45K
• Price to Earnings (P/E): 39.0
• Beta (1Y): 0.81
• 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: £3,656.15
• Price Target Upside: 2.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 4,170.00p ▲(16.42% Upside)

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

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability and shareholder value.

Strategic Investments

Significant investments in R&D and acquisitions support innovation and expansion, positioning the company for sustained growth and competitive advantage.

Margin Performance

Improved margins reflect efficient operations and cost management, enhancing profitability and providing a buffer against market fluctuations.

Negative Factors

Cash Conversion

Lower cash conversion can strain liquidity, potentially affecting the company's ability to fund operations and investments without external financing.

Currency Headwinds

Currency headwinds can impact earnings and profitability, particularly for a global company, affecting financial performance and competitive positioning.

Mixed Sub-sector Performance

Inconsistent performance across sub-sectors may indicate challenges in specific markets, potentially hindering overall growth and strategic execution.

Halma plc Business Overview & Revenue Model

Company Description

Halma plc is a global group of life-saving technology companies that operates primarily in the sectors of health and safety, environmental protection, and infrastructure. The company focuses on developing innovative products and solutions that enhance safety, efficiency, and sustainability across various industries. Halma's core offerings include advanced sensors, safety equipment, water quality monitoring systems, and healthcare technologies, all designed to improve quality of life and reduce risks in critical environments.

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 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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.66B	2.25B	2.03B	1.85B	1.53B	1.32B
Gross Profit	1.11B	1.13B	1.01B	877.90M	724.30M	613.60M
EBITDA	381.80M	537.30M	475.50M	410.60M	373.40M	353.30M
Net Income	216.30M	296.40M	268.80M	234.50M	244.40M	203.40M
Balance Sheet
Total Assets	3.26B	3.26B	3.00B	2.79B	2.20B	1.88B
Cash, Cash Equivalents and Short-Term Investments	313.20M	313.20M	142.70M	169.50M	157.40M	134.10M
Total Debt	849.00M	849.00M	795.90M	766.20M	432.20M	390.30M
Total Liabilities	1.36B	1.36B	1.26B	1.19B	792.80M	709.60M
Stockholders Equity	1.90B	1.90B	1.74B	1.60B	1.40B	1.17B
Cash Flow
Free Cash Flow	309.60M	433.00M	333.40M	195.30M	189.40M	226.20M
Operating Cash Flow	340.90M	492.40M	385.00M	241.20M	229.40M	268.40M
Investing Cash Flow	-168.80M	-163.90M	-286.30M	-369.60M	-134.90M	-65.00M
Financing Cash Flow	-126.20M	-155.10M	-119.70M	138.50M	-73.70M	-173.50M

Halma plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3582.00
• 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 3582 is above the 20-day moving average (MA) of 3560.07, above the 50-day MA of 3506.36, and above the 200-day MA of 3154.97, indicating a bullish trend. The MACD of 12.44 indicates Positive momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 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	£13.53B	38.99	18.61%	0.66%	11.74%	20.98%
RTO	74 Outperform	£11.16B	43.66	5.93%	1.68%	-1.58%	-34.64%
ITRK	74 Outperform	£7.17B	20.72	29.71%	3.42%	1.14%	17.74%
SPX	72 Outperform	£5.04B	31.03	14.19%	2.43%	0.10%	-15.33%
BNZL	69 Neutral	£6.75B	14.34	17.98%	3.53%	1.92%	0.50%
DPLM	66 Neutral	£7.21B	38.98	19.69%	1.12%	11.82%	42.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Halma plc Corporate Events

Halma Expands Safety Sector with E2S Acquisition

Halma plc has acquired E2S Group Ltd, a company specializing in high-performance notification, initiation, and detection devices for hazardous environments, for £230 million. This acquisition enhances Halma’s capabilities in industrial safety markets and aligns with its strategy to expand in fire detection and alarm systems, positioning E2S within its Safety Sector.

Halma plc Reports Strong Half-Year Results with Increased Dividend

Halma plc announced its half-year results for 2025/26, highlighting a 7% increase in the interim dividend to 9.63p per share, reflecting the company’s strong financial performance. This increase in dividends indicates Halma’s commitment to delivering value to its shareholders and underscores its robust position in the market, with implications for continued growth and stability in its operations.

Halma plc Awards Free Shares to Key Executives

Halma plc has announced the award of free shares to several of its directors and persons discharging managerial responsibilities under the Halma Group Share Incentive Plan. This move reflects the company’s commitment to aligning the interests of its management with those of its shareholders, potentially enhancing motivation and retention of key personnel.

Halma Executive Sells Shares in Compliance with Market Regulations

Halma plc announced a transaction involving the sale of 15,000 ordinary shares by Jennifer Ward, the Chief, Talent, Culture and Communications Executive. The shares were sold at a price of £33.8122 each, totaling £507,183.00. This transaction is part of the company’s compliance with the Market Abuse Regulation, ensuring transparency and accountability in managerial dealings.

Halma plc Increases Revenue Growth Guidance Amid Strong First Half Performance

Halma plc has reported strong progress in the first half of the financial year, leading to an increase in its full-year revenue growth guidance to low double-digit percentage growth, driven by robust performance in the photonics segment of its Environmental & Analysis Sector. Despite the negative currency translation effect due to Sterling’s appreciation, Halma maintains a solid financial position, supporting strategic investments and acquisitions. The company completed two acquisitions and one disposal, aligning with its strategy to manage its portfolio for strong growth and returns.