Halma plc (HLMA) AI Stock Analysis

• Market Cap: £13.39B
• Dividend Yield: 0.67%
• Average Volume (3M): 658.45K
• Price to Earnings (P/E): 45.1
• Beta (1Y): 0.89
• Revenue Growth: 10.52%
• EPS Growth: 10.19%
• Country: UK
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.51
• 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: £3,509.00
• Price Target Upside: 2.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 4,084.00p ▲(19.14% Upside)

Halma plc's overall stock score is driven by its strong financial performance and positive earnings call sentiment, which highlight consistent revenue growth and strategic investments. The technical analysis supports a bullish trend, although caution is advised due to the high RSI. The valuation score is lower due to a high P/E ratio and modest dividend yield, indicating potential overvaluation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth over 22 years highlights Halma's strong market position and effective business strategies, ensuring long-term stability.

Cash Generation

Strong cash conversion supports ongoing investments and dividend growth, indicating robust financial health and operational efficiency.

M&A Strategy

Successful acquisitions enhance product offerings and market reach, driving long-term growth and competitive advantage.

Negative Factors

Currency Headwinds

Currency fluctuations can impact profitability and financial performance, posing a risk to international operations and earnings stability.

Water Analysis Sector Challenges

Delays in utility projects affect revenue and growth in the Water Analysis sector, potentially impacting overall performance.

Healthcare Sector Challenges

Regulatory challenges and market conditions in healthcare can hinder growth and profitability, affecting strategic objectives.

Halma plc Business Overview & Revenue Model

Company Description

Halma 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 Money

Halma 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 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	342.60M
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: Neutral
• Last Price: 3428.00
• 50DMA: Negative
• 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 Neutral. The current price of 3428 is below the 20-day moving average (MA) of 3509.80, above the 50-day MA of 3426.24, and above the 200-day MA of 3067.95, indicating a neutral trend. The MACD of 14.46 indicates Positive momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 26.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£13.39B	45.15	16.30%	0.67%	10.52%	10.19%
DPLM	73 Outperform	£7.42B	44.29	18.41%	1.12%	15.75%	44.11%
ITRK	73 Outperform	£7.85B	22.62	29.71%	3.23%	1.14%	17.74%
SPX	71 Outperform	£5.18B	31.85	14.19%	2.41%	0.10%	-15.33%
BNZL	70 Outperform	£7.28B	15.48	17.98%	3.10%	1.92%	0.50%
RTO	70 Outperform	£10.57B	41.35	5.93%	1.80%	-1.58%	-34.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Halma plc Corporate Events

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.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £37.70 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

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.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £37.70 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

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.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £37.50 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.

Halma Acquires Brownline to Boost Infrastructure Safety and Energy Transition

Halma plc has acquired Brownline, a Dutch provider of advanced gyroscopic locating systems used in trenchless underground drilling, for €150 million. This acquisition aligns with Halma’s strategic focus on supporting the global energy transition and enhancing infrastructure safety, as Brownline’s technology offers precise underground installation solutions crucial for expanding cities and accelerating electrification.

The most recent analyst rating on (GB:HLMA) stock is a Buy with a £3718.00 price target. To see the full list of analyst forecasts on Halma plc stock, see the GB:HLMA Stock Forecast page.