Haleon PLC Sponsored ADR (HLN) AI Stock Analysis

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Haleon PLC Sponsored ADR

(NYSE:HLN)

Rating:73Outperform

Price Target:―

Haleon's strong financial performance, characterized by robust cash flow and stable profitability, is a key strength, complemented by positive technical indicators suggesting upward momentum. However, the stock's valuation appears high, and recent earnings call highlights both opportunities in emerging markets and challenges like FX headwinds and product performance issues. These factors collectively position the stock at a solid yet cautious 73.1 score.

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

Market Cap

$49.77B

Dividend Yield1.53%

Average Volume (3M)16.48M

Price to Earnings (P/E)27.4

Beta (1Y)0.33

Revenue Growth2.16%

EPS Growth43.24%

CountryUS

Employees24,561

SectorHealthcare

Sector Strength43

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.11

Shares Outstanding4,503,030,000

10 Day Avg. Volume20,613,245

30 Day Avg. Volume16,479,824

Financial Highlights & Ratios

PEG Ratio60.50

Price to Book (P/B)2.30

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.38

Price Target Upside2.89% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Haleon PLC Sponsored ADR Business Overview & Revenue Model

Company DescriptionHaleon plc engages in the research and development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides therapeutic oral health, pain relief, respiratory health, digestive health, and other products, as well as vitamins, minerals, and supplements. Its portfolio of brands include Panadol, Voltaren, Advil, Otrivin, Theraflu, Sensodyne, Polident, parodontax, and Centrum. The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was incorporated in 2021 and is headquartered in Brentford, the United Kingdom.

How the Company Makes MoneyHaleon PLC generates revenue through the sale of its consumer healthcare products across various categories, including oral health, pain relief, respiratory, digestive health, and VMS. The company's revenue streams are primarily derived from the global sales of its established brands, which are distributed through a wide network of retail and online channels. Haleon collaborates with healthcare professionals and leverages strategic partnerships to enhance its market reach and product accessibility. The company's earnings are influenced by consumer demand trends, innovations in product offerings, and its ability to effectively market and distribute its products worldwide.

Haleon PLC Sponsored ADR Financial Statement Overview

Summary

Haleon PLC shows a strong financial position with stable profitability margins and efficient cash flow generation. While the revenue growth has been flat, the company maintains a solid balance sheet with a balanced debt profile and sufficient equity. The cash flow metrics are particularly robust, supporting long-term sustainability and potential growth opportunities. Continued focus on revenue expansion and cost management could further enhance financial performance.

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
2.21B	2.00B	1.82B	1.64B	1.60B
	EBITDA
2.51B	2.35B	2.18B	2.21B	1.91B
	Net Income Common Stockholders
1.44B	1.05B	1.06B	1.39B	1.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.25B	1.04B	684.00M	414.00M	334.00M
	Total Assets
34.31B	34.05B	34.81B	34.45B	34.13B
	Total Debt
10.10B	9.46B	10.44B	991.00M	487.00M
	Net Debt
7.91B	8.41B	9.76B	577.00M	153.00M
	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

Positive

Last Price11.06

Price Trends

50DMA

10.26

Positive

100DMA

9.95

Positive

200DMA

9.89

Positive

Market Momentum

MACD

0.24

Negative

RSI

67.15

Neutral

STOCH

91.78

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLN, the sentiment is Positive. The current price of 11.06 is above the 20-day moving average (MA) of 10.66, above the 50-day MA of 10.26, and above the 200-day MA of 9.89, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 67.15 is Neutral, neither overbought nor oversold. The STOCH value of 91.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLN.

Haleon PLC Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	77 Outperform	$11.86B	17.79	18.36%	0.57%	13.26%	1.33%
HLN	73 Outperform	$49.77B	27.40	8.90%	1.53%	2.16%	43.24%
TAK	71 Outperform	$45.71B	64.27	1.50%	4.09%	1.92%	6.40%
PRGO	63 Neutral	$3.63B	―	-3.64%	4.23%	-4.85%	-4290.31%
TEVA	58 Neutral	$18.97B	―	-18.98%	―	3.38%	-175.90%
VTRS	55 Neutral	$9.98B	―	-21.25%	5.65%	-6.88%	-6809.78%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%

* Healthcare Sector Average

Performance Comparison

HLN

Haleon PLC Sponsored ADR

11.14

2.90

35.19%

RDY

Dr Reddy's Laboratories

14.38

0.54

3.90%

VTRS

Viatris

8.29

-1.65

-16.60%

PRGO

Perrigo Company

26.56

-0.24

-0.90%

TEVA

Teva Pharmaceutical

16.96

0.36

2.17%

TAK

Takeda Pharmaceutical Company

14.57

1.97

15.63%

Haleon PLC Sponsored ADR Earnings Call Summary

Earnings Call Date:Feb 27, 2025

(Q4-2024)

% Change Since: 9.72%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

Haleon demonstrated strong performance in emerging markets and innovation-driven growth, particularly in the Oral Health segment. However, challenges such as a weak cold and flu season, FX headwinds, and underperformance of the Eroxon launch present notable obstacles. The overall sentiment reflects a balanced view of both achievements and challenges.

Q4-2024 Updates

Positive Updates

Strong Momentum in Emerging Markets

Haleon is experiencing strong momentum in emerging markets, particularly in India and China, which is expected to drive performance in the latter half of 2025.

Oral Health Segment Expansion

The Oral Health segment, highlighted by the Clinical White platform, is expanding into 12 more markets this year. Other products like Clinical Enamel Repair have been launched in the US and other regions, driving growth.

Innovation Driving Growth

Innovation across categories, including Otrivin Nasal Mist and Centrum Silver, is contributing to category growth and market share gains.

71% Market Share Maintenance

71% of Haleon's business gained or maintained market share for the full year, indicating strong performance and competitiveness.

Increased A&P Investment

A&P investment increased by 10.2% in 2024, reflecting the company's commitment to sustaining growth through marketing and expert coverage.

Successful China JV Acquisition

Haleon has increased its ownership in the China JV, leading to more control over operations and anticipated efficiencies.

Negative Updates

Cold and Flu Season Impact

A low cold and flu season resulted in a 15% decline in the market both in the US and globally, leading to higher inventory levels and a slow start to Q1.

FX Headwinds

Currency fluctuations are expected to have a negative impact on revenue (-1%) and bottom line (-2.5%) for 2025, especially affecting emerging markets.

Eroxon Performance Below Expectations

The Eroxon launch has been slower than expected, impacting early trial results and contributing to lower-than-anticipated performance.

Challenging Retail Environment in the US

Some US retailers, particularly in the drug channel, are struggling, affecting inventory levels and creating additional pressure on sales.

Company Guidance

In the call, Haleon provided guidance indicating confidence in achieving a 4% to 6% growth for the full year 2025, despite a slow start attributed to higher inventory levels due to a low cold and flu season, which saw the market down by 15% in both the US and globally. The company highlighted strong performance in emerging markets like India and China and a robust innovation pipeline, particularly in Oral Health with products like Sensodyne and Clinical White contributing to share gains. They also noted a £500 million share buyback, emphasizing strategic investments and potential for bolt-on M&A. The impact of currency fluctuations was acknowledged, with expected headwinds of minus 1% to 2.5% on top and bottom lines due to emerging market dynamics, while ongoing efforts to optimize working capital and supply chain were discussed as part of their strategic focus.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.