Haleon PLC Sponsored ADR (HLN) AI Stock Analysis

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Haleon PLC Sponsored ADR

(NYSE:HLN)

Rating:65Neutral

Price Target:

$10.00

▲(5.71% Upside)

Haleon PLC's overall stock score of 65 reflects a mixed outlook. Strong financial performance and strategic investments are offset by bearish technical signals and regional sales challenges, particularly in North America. The company's valuation is moderate, aligning with its growth prospects. Continued focus on innovation and market expansion could enhance its position, but near-term challenges need to be addressed.

Haleon PLC Sponsored ADR (HLN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$41.96B

Dividend Yield1.78%

Average Volume (3M)12.19M

Price to Earnings (P/E)21.4

Beta (1Y)0.27

Revenue Growth0.58%

EPS Growth45.74%

CountryUS

Employees24,561

SectorHealthcare

Sector Strength37

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.24

Shares Outstanding4,490,536,000

10 Day Avg. Volume12,346,181

30 Day Avg. Volume12,185,421

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.38

Enterprise Value/Revenue5.14

Enterprise Value/Gross Profit8.21

Enterprise Value/Ebitda23.91

Forecast

1Y Price Target

$12.63

Price Target Upside33.51% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Haleon PLC Sponsored ADR Business Overview & Revenue Model

Company DescriptionHaleon PLC Sponsored ADR (HLN) is a global consumer healthcare company that specializes in the development, manufacturing, and marketing of a wide range of health-related products. As a leading player in the healthcare sector, Haleon focuses on delivering high-quality over-the-counter (OTC) medicines, vitamins, supplements, and other wellness products. Their portfolio includes well-known brands that cater to various consumer health needs, from pain relief and respiratory health to digestive wellness and oral care.

How the Company Makes MoneyHaleon PLC generates revenue primarily through the sale of its consumer healthcare products across multiple channels, including retail pharmacies, online platforms, and direct-to-consumer sales. The company's key revenue streams include OTC medicines, vitamins, dietary supplements, and oral health products, which are marketed under established brand names with strong consumer recognition. Haleon benefits from strategic partnerships with retailers and distributors to expand its market reach and enhance product accessibility. Additionally, the company's focus on innovation and product development helps maintain its competitive edge and supports its revenue growth by meeting evolving consumer health preferences.

Haleon PLC Sponsored ADR Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which areas are driving growth and which may need strategic adjustments.

Chart InsightsHaleon PLC's Oral Health segment shows consistent growth, peaking in early 2024, indicating strong consumer demand. VMS remains stable with slight fluctuations, suggesting steady market presence. Pain Relief and Respiratory Health exhibit seasonal patterns, with notable peaks in the first quarter, potentially driven by increased consumer needs during colder months. Digestive Health & Other faces a declining trend in late 2024, which could signal shifting consumer preferences or competitive pressures. Without earnings call insights, these trends highlight the importance of strategic focus on Oral Health and addressing challenges in Digestive Health.

Data provided by:

Main Street Data

Haleon PLC Sponsored ADR Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: -1.87%|

Next Earnings Date:Feb 26, 2026

Earnings Call Sentiment Neutral

The earnings call reflected a mixed sentiment with strong performance and strategic investments in several regions offset by significant challenges in North America, particularly in the smoking cessation and vitamin markets. The company's confidence in medium-term growth remains, despite current headwinds.

Q2-2025 Updates

Positive Updates

Strong Performance in EMEA, LatAm, and APAC

The EMEA, LatAm, and APAC regions performed well within the company's medium-term 4% to 6% organic sales growth guidance, with strong volume growth in these regions.

Gross Margin and Cash Flow Improvement

The company reported a 160 basis points improvement in gross margin and strong cash flow, contributing to organic profit growth.

Oral Health Market Share Gains

Oral Health segment showed strong growth with market share gains, including a 0.5 share point increase in the U.S.

Investment in A&P and Innovation

A&P spend increased by 6.8% to 20.8%, with investments focused on innovation, premiumization, and expanding reach to lower-income consumers.

Successful Innovation and ROI Improvement

The company successfully rolled out innovations such as Nasal Mist on Otrivin and Panadol Dual Action, and improved ROI by 4%.

Asia Pacific Volume Growth

Volume growth in Asia Pacific accelerated from 3.3% in Q1 to 3.9% in Q2, with 2/3 of growth in Q2 coming from volume.

Negative Updates

North America Sales Decline

North America experienced a nearly 2% decline in organic sales growth, impacted by challenging consumer environment, trade down in smoking cessation, and inventory pressures.

Smokers' Health Segment Challenges

The smoking cessation category saw a significant decline, with a $30 to $40 price point range experiencing trade down and contributing to a 60 basis points impact on total group growth.

Centrum and Advil Share Loss

Centrum faced challenges with declines in the U.S., despite growth outside the U.S., and Advil experienced slight share loss in the first half.

U.S. Retailer and Inventory Challenges

Retailers in the U.S. continued to manage inventory tightly, affecting sales, particularly in the drug channel.

Volume Growth Concerns

Overall volume growth was 0.8% in the first half, with U.S. volumes down 1.8% in Q2, raising concerns about achieving medium-term growth targets.

Company Guidance

During the Haleon Half Year 2025 Results Q&A Conference Call, the guidance provided highlighted several key metrics and insights into the company's performance and future expectations. Notably, the company expects around 3.5% growth for the year, despite challenges in North America, where a nearly 2% decline in organic sales growth was observed in Q2. This decline was attributed to a difficult consumer environment, inventory pressures, and a shift towards value channels like Dollar and Club stores. Haleon reported a significant increase in A&P spending, up 130 basis points in the first half, focusing on supporting innovation and expanding reach to lower-income consumers. The company also noted strong organic profit growth driven by a 160 basis point improvement in gross margin and robust cash flow. Despite these challenges, Haleon remains confident in its medium-term guidance of 4% to 6% organic sales growth, supported by strategic investments in supply chain productivity and brand innovation.

Haleon PLC Sponsored ADR Financial Statement Overview

Summary

Haleon PLC demonstrates strong financial metrics with robust profitability margins and efficient cash flow generation. Despite flat revenue growth, the company's balance sheet is solid with a balanced debt profile. The focus on improving revenue and cost management could enhance its financial standing further.

Income Statement

Positive

The company showcases strong profitability with a consistent gross profit margin around 61.9% in the latest year. The net profit margin improved to 12.8% from the previous year's 9.3%, indicating an enhanced bottom line. EBIT and EBITDA margins are robust at 19.6% and 22.4%, respectively. However, revenue growth has stagnated, with a slight decrease from the previous year, reflecting potential challenges in expanding market share.

Balance Sheet

Positive

The balance sheet reflects a moderate debt-to-equity ratio of 0.64, highlighting a balanced approach to leveraging. Return on equity stands at 8.9%, showing decent profitability relative to shareholder investment, though slightly lower than industry leaders. The equity ratio is strong at 47.1%, indicating a solid capital structure with substantial equity backing the assets.

Cash Flow

Positive

Cash flow generation is strong with an operating cash flow to net income ratio of 1.6, indicating efficient cash conversion from profits. Free cash flow to net income ratio is 1.4, demonstrating healthy free cash flow generation. The free cash flow growth rate of 16.3% over the previous year highlights effective cash management and capital efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.23B	11.30B	10.86B	9.54B	9.89B
Gross Profit	6.95B	6.96B	6.58B	5.95B	5.91B
EBITDA	2.51B	2.35B	2.18B	2.21B	1.91B
Net Income	1.44B	1.05B	1.06B	1.39B	1.15B
Balance Sheet
Total Assets	34.31B	34.05B	34.81B	34.45B	34.13B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.04B	684.00M	414.00M	334.00M
Total Debt	10.10B	9.46B	10.44B	991.00M	487.00M
Total Liabilities	18.09B	17.33B	18.36B	7.97B	7.91B
Stockholders Equity	16.17B	16.61B	16.33B	26.36B	26.11B
Cash Flow
Free Cash Flow	2.05B	1.76B	1.74B	1.06B	1.09B
Operating Cash Flow	2.30B	2.10B	2.06B	1.36B	1.41B
Investing Cash Flow	528.00M	-134.00M	-8.78B	-33.00M	1.03B
Financing Cash Flow	-1.54B	-1.57B	6.91B	-1.24B	-2.44B

Haleon PLC Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.46

Price Trends

50DMA

10.26

Negative

100DMA

10.27

Negative

200DMA

9.94

Negative

Market Momentum

MACD

-0.22

Positive

RSI

39.70

Neutral

STOCH

15.68

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLN, the sentiment is Negative. The current price of 9.46 is below the 20-day moving average (MA) of 9.64, below the 50-day MA of 10.26, and below the 200-day MA of 9.94, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLN.

Haleon PLC Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAK	71 Outperform	$45.28B	46.65	1.99%	4.19%	1.92%	6.40%
RDY	67 Neutral	$11.54B	17.09	18.36%	0.67%	13.03%	-0.49%
HLN	65 Neutral	$41.96B	21.36	9.20%	1.78%	0.58%	45.74%
VTRS	57 Neutral	$10.54B	―	-19.77%	5.49%	-6.88%	-6809.78%
TEVA	55 Neutral	$18.31B	―	-2.31%	―	2.43%	64.37%
Sector *	51 Neutral	$7.39B	0.36	-62.86%	2.37%	15.48%	-2.68%
PRGO	51 Neutral	$3.25B	―	-1.32%	4.79%	-2.32%	35.46%

* Healthcare Sector Average

Performance Comparison

HLN

Haleon PLC Sponsored ADR

9.46

0.00

0.00%

RDY

Dr Reddy's Laboratories

13.60

-3.09

-18.51%

VTRS

Viatris

9.39

-2.16

-18.70%

PRGO

Perrigo Company

22.83

-3.98

-14.85%

TEVA

Teva Pharmaceutical

16.29

-0.87

-5.07%

TAK

Takeda Pharmaceutical Company

14.36

1.03

7.73%

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 01, 2025