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Haleon PLC Sponsored ADR (HLN)
NYSE:HLN
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Haleon PLC Sponsored ADR
(NYSE:HLN)
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Select Model
Rating:67Neutral
Price Target:
$10.00
▲(5.04% Upside)
Haleon PLC's overall stock score reflects a strong financial foundation with robust cash flow and profitability metrics, but tempered by flat revenue growth and challenges in the North American market. The technical indicators suggest a neutral trend, and the valuation is moderate. The earnings call provided a balanced view of strengths in international markets and challenges in North America.
Positive Factors
Cash Flow Generation
Efficient cash conversion supports long-term sustainability and growth opportunities, indicating robust financial health.
International Market Growth
Strong performance in international markets suggests successful geographic expansion and potential for sustained revenue growth.
Salesforce Partnership
The partnership with Salesforce enhances customer engagement capabilities, potentially improving sales effectiveness and market reach.
Negative Factors
North America Sales Decline
Declining sales in North America could indicate market saturation or competitive pressures, impacting overall revenue growth.
Smokers' Health Category Decline
Declines in the Smokers' Health category suggest challenges in product demand, potentially affecting long-term segment performance.
Challenges with Centrum and Advil
Struggles with key brands like Centrum and Advil may hinder market share growth and brand positioning in a competitive landscape.
Haleon PLC Sponsored ADR (HLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.89B
Dividend Yield1.74%
Average Volume (3M)9.38M
Price to Earnings (P/E)22.8
Beta (1Y)0.13
Revenue Growth0.58%
EPS Growth45.74%
CountryUS
Employees24,561
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.24
Shares Outstanding4,453,304,000
10 Day Avg. Volume10,220,639
30 Day Avg. Volume9,384,226
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)2.15
Price to Sales (P/S)3.10
P/FCF Ratio16.97
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit6.05
Enterprise Value/Ebitda15.80
Forecast
1Y Price Target
$13.44Price Target Upside41.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of consumer healthcare products across its various segments. The company's revenue model is built on a combination of direct sales to retailers, wholesalers, and e-commerce platforms, as well as through partnerships with pharmacies and other healthcare providers. Key revenue streams include over-the-counter medications, oral health products, and dietary supplements, which are sold globally. Haleon benefits from strong brand recognition and loyalty, which drive repeat purchases. Additionally, the company invests in marketing and innovation to expand its product offerings and reach new consumer segments, further contributing to its earnings.
Haleon PLC Sponsored ADR Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how revenue is distributed across different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyHaleon PLC Sponsored ADR Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong performance in international markets and operational improvements but highlighted significant challenges in the North American market, particularly in the Smokers' Health category and specific brands like Centrum and Advil.Q2-2025 Updates
Positive Updates
Strong Performance in EMEA, LatAm, and APAC
EMEA, LatAm, and APAC regions were well within the medium-term 4% to 6% organic sales growth guidance. EMEA and LatAm saw volume growth accelerate from 0.5 points in Q1 to 1.6% in Q2, and Asia Pac from 3.3% to 3.9%.
Gross Margin and Cash Flow Improvements
Gross margin improved by 160 basis points, and strong cash flow was noted as a key driver of organic profit growth.
Successful Innovation and A&P Investment
A&P spending increased by 130 basis points, with a focus on innovation and geographic expansion, particularly in India, Central Europe, and China. ROI improved by 4%.
Oral Health Market Share Gains
Gains in Oral Health were strong, with a 0.5 share point increase in the U.S. during the first half.
Negative Updates
North America Sales Decline
North America experienced a nearly 2% organic sales growth decline, attributed to a challenging consumer environment and inventory pressures.
Decline in Smokers' Health Category
Smokers' Health saw significant declines, impacting overall group growth by 60 basis points and North America from -1.8% to -0.2%.
Challenges with Centrum and Advil
Centrum and Advil brands faced challenges in the U.S., with Centrum not growing share and consumption declining, and Advil experiencing mixed performance.
Retailer Inventory Pressures
Retailers in the U.S. are tightly managing inventory levels due to economic pressures, impacting sales performance.
Company Guidance
During Haleon's Half Year 2025 Results Q&A Conference Call, several key metrics and guidance were discussed. The company highlighted regional performance, noting that EMEA, LatAm, and APAC achieved within the medium-term organic sales growth guidance of 4% to 6%, while North America faced a 2% organic sales decline. The company cited challenges such as a tough consumer environment and inventory pressures from retailers. Despite this, Haleon reported strong organic profit growth, driven by a 160 basis points increase in gross margin and robust cash flow. Advertising and promotion (A&P) spending increased by 130 basis points to 20.8% in the first half, focusing on innovation, geographic expansion, and expert recommendations. The company remains confident in its medium-term guidance, supported by productivity improvements and gross margin expansion, projecting around 3.5% organic growth and high single-digit operating profit growth at constant currency.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 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.Income Statement
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
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
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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.02B | 11.23B | 11.30B | 10.86B | 9.54B | 9.89B |
| Gross Profit | 6.93B | 6.95B | 6.96B | 6.58B | 5.95B | 5.91B |
| EBITDA | 2.66B | 2.51B | 2.35B | 2.18B | 2.21B | 1.91B |
| Net Income | 1.52B | 1.44B | 1.05B | 1.06B | 1.39B | 1.15B |
Balance Sheet | ||||||
| Total Assets | 31.83B | 34.31B | 34.05B | 34.81B | 34.45B | 34.13B |
| Cash, Cash Equivalents and Short-Term Investments | 676.00M | 2.25B | 1.04B | 684.00M | 414.00M | 334.00M |
| Total Debt | 8.45B | 10.10B | 9.46B | 10.44B | 991.00M | 487.00M |
| Total Liabilities | 15.83B | 18.09B | 17.33B | 18.36B | 7.97B | 7.91B |
| Stockholders Equity | 15.94B | 16.17B | 16.61B | 16.33B | 26.36B | 26.11B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 2.05B | 1.76B | 1.74B | 1.06B | 1.09B |
| Operating Cash Flow | 1.13B | 2.30B | 2.10B | 2.06B | 1.36B | 1.41B |
| Investing Cash Flow | -374.74M | 528.00M | -134.00M | -8.78B | -33.00M | 1.03B |
| Financing Cash Flow | -2.79B | -1.54B | -1.57B | 6.91B | -1.24B | -2.44B |
Haleon PLC Sponsored ADR Technical Analysis
Positive
9.52
Price Trends
9.70
Positive
9.54
Positive
9.86
Positive
Market Momentum
0.13
Positive
55.94
Neutral
55.81
Neutral
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 9.52 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 9.70, and below the 200-day MA of 9.86, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 55.81 is Neutral, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $11.18B | 16.40 | 17.72% | 0.64% | 10.63% | 6.35% | |
67 Neutral | $43.89B | 22.79 | 9.20% | 1.74% | 0.58% | 45.74% | |
63 Neutral | $50.99B | 193.48 | 0.54% | 3.86% | -1.98% | -86.20% | |
60 Neutral | $14.51B | -4.07 | -21.09% | 3.99% | -6.40% | -320.23% | |
60 Neutral | $37.89B | 53.09 | 10.77% | ― | -0.25% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $2.02B | -39.02 | -0.65% | 8.48% | -2.55% | 66.00% |
* Healthcare Sector Average
HLN
Haleon PLC Sponsored ADR
10.04
1.10
12.30%
RDY
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13.35
-1.88
-12.34%
VTRS
Viatris
12.60
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12.20%
PRGO
Perrigo Company
14.70
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-36.20%
TEVA
Teva Pharmaceutical
32.51
12.07
59.05%
TAK
Takeda Pharmaceutical Company
16.37
3.66
28.80%
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.