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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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Rating:66Neutral
Price Target:
$11.50
▲(20.80% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by improving profitability and solid cash-flow quality, supported by constructive (but not strong) technical signals. It is held back by soft recent revenue/volume trends and a moderate-to-rich valuation (P/E ~25.5) with only a modest dividend yield, while the earnings call reinforced steady 2026 growth guidance alongside ongoing near-term category and U.S. headwinds.
Positive Factors
Margin improvement
Sustained margin expansion reflects structural supply‑chain and productivity gains that improve earnings resilience. Higher gross and net margins create durable cash coverage for reinvestment, protecting profitability even if top‑line growth lags.
Strong cash generation
High FCF conversion and a large cash uplift provide lasting financial flexibility: they fund capex, A&P/R&D, and debt reduction without relying on equity markets, cushioning the business through cyclical volume weakness.
Brands & e‑commerce strength
A portfolio of leading OTC brands plus strong e‑commerce reach creates durable competitive advantage. High online share and channel capabilities support margin, direct consumer access, and faster scaling in high‑growth markets like China.
Negative Factors
Soft revenue & volumes
Persistent low volume growth forces reliance on price/mix and marketing to hit targets. Structural volume underperformance versus peers limits sustainable top‑line momentum and increases sensitivity to category cycles and private‑label pressure.
Significant absolute debt
A large absolute debt stock reduces strategic flexibility and raises refinancing risk if growth stalls. Debt servicing and covenant considerations constrain investment choices and make the business more sensitive to macro shocks.
U.S. and pharmacy channel headwinds
Structural weakness in the U.S. and uncertainty in pharmacy channels (destocking, retailer changes) impair the company's largest market. Persistent channel disruption raises execution risk and could depress sell‑through and distributor relationships.
Haleon PLC Sponsored ADR (HLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.61B
Dividend Yield1.74%
Average Volume (3M)8.08M
Price to Earnings (P/E)22.6
Beta (1Y)0.11
Revenue Growth0.58%
EPS Growth45.74%
CountryUS
Employees24,561
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.13
Shares Outstanding4,453,398,400
10 Day Avg. Volume9,940,323
30 Day Avg. Volume8,080,620
Financial Highlights & Ratios
PEG Ratio1.65
Price to Book (P/B)2.05
Price to Sales (P/S)3.12
P/FCF Ratio17.06
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit6.18
Enterprise Value/Ebitda15.57
Forecast
1Y Price Target
$13.86Price Target Upside45.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.55
Revenue Forecast (FY)$15.50B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call balances clear operational and strategic progress (notably strong margin/cost improvements, Oral Health outperformance, emerging markets growth, increased A&P/R&D investment, and a planned $175–$200M cost saving reorganization) against meaningful top-line and volume challenges (soft U.S. market, cold & flu season weakness, category-specific headwinds, and regional retailer/inventory issues). Management presented realistic 2026 guidance (3%–5%) while reiterating confidence in returning to the 4%–6% medium-term ambition as U.S. performance, distribution gains, and productivity benefits materialize.Q4-2025 Updates
Positive Updates
Organic Sales Growth (FY2025) and 2026 Guidance
FY2025 organic sales growth of 3%. Guidance for FY2026 set at 3%–5%, with management reiterating a medium-term ambition of 4%–6%.
Gross Margin and Supply Chain Productivity
Gross margin improvement of 220 basis points in FY2025 driven by supply chain and productivity programs; company targets 50–80 basis points of further supply chain productivity built into guidance for future years.
Planned Cost Savings from Reorganization
Organizational redesign (new Chief Growth Officer, Chief Transformation Officer, six operating units) is expected to deliver $175 million–$200 million gross savings and create a flatter, leaner structure to free up investment for growth.
Oral Health Outperformance
Oral Health delivered strong performance (high single-digit growth with Q4 acceleration). Sensodyne continues sustained growth (long-term high single-digit to double-digit trend). Half of incremental A&P increase was allocated to Oral Health.
Emerging Markets Strength
Strong performance in emerging markets: India grew double digits (benefitting from INR 20 pack, rural reach and salesforce changes), China mid-single-digit growth, Parodontax growing mid-teens, and e-commerce in China ~40% of business with Douyin growing >100%.
Increased Investment in Growth and R&D
A&P spend increased ~7.5% year-on-year (A&P at ~20.5% of sales); R&D increased ~7.7% year-on-year. Working media grew 12% and global media ROI improved mid-single digits; 60% of working media is digital.
Channel and E‑commerce Capabilities
Strong e-commerce capabilities highlighted: on Amazon, 18 brands account for 90% of Haleon’s Amazon business and 16 of those 18 brands have higher share online than offline, positioning the company to benefit from ongoing channel shifts.
Operational Improvements and Factory Optimizations
Operational efficiency gains included reducing single-language packs (e.g., Aquafresh packs from 44 to 18) and reducing formulations (e.g., Levice factory formulations down 30%), plus a 7-point improvement in overall equipment effectiveness.
Negative Updates
Top-Line Disappointment and Volume Weakness
Top-line underperformance in FY2025 (3% organic) and historically low volume performance (average volume ~1% over past 3 years), below peer best-in-class volume levels (target ~2%+). Company acknowledges volume is a key focus for 2026.
U.S. Market Softness and Cold & Flu Headwind
U.S. sales declined ~0.5% in FY2025 and cold & flu category softness materially weighed on results; Q1 cold & flu expected to be below prior year, and management noted the U.S. has been a drag though they expect recovery in 2026.
Guidance Below Medium-Term Range and Market Uncertainty
2026 guidance of 3%–5% sits below the company's stated medium-term ambition of 4%–6%, reflecting ongoing market uncertainty; management acknowledged two consecutive years where growth is near or below the bottom of medium-term range.
Regional Slowdowns (Q4) and Retailer Challenges
Sequential slowdown in Q4 in parts of emerging markets (notably LatAm slowdown in Q4 and challenging macro/backdrop in Brazil) and evidence of retailer destocking/low inventory across U.S. pharmacy channels impacting sell-through.
Category-Specific Pressure: Digestive Health and Pain
Digestive Health slowed in 2025 with Nexium facing pressure from private label in the U.S.; Pain categories also muted in 2024–2025 despite some bright spots (Voltaren topical/patch innovations and Panadol strength in Asia).
Pharmacy Channel and Retailer Uncertainty
Pressure and inventory shifts in major U.S. pharmacy retailers (Walgreens, CVS) created channel drag; potential future ownership changes at retailers add uncertainty to pharmacy channel dynamics.
Operational Metric Improvement Shortfall vs H1 Expectations
Overall equipment effectiveness improved by 7 points in 2025 but was noted as slightly lower than management expected at H1, indicating some operational gains fell short of initial targets.
Near-Term Seasonality Impact
Management flagged Q1 as likely to be below the prior year due to a softer cold & flu season, creating near-term top-line pressure despite planned inventory normalization and Q2 shelving gains.
Company Guidance
Management reiterated FY2026 organic sales guidance of 3–5% (with a medium‑term ambition of 4–6%), noting 2025 organic growth was 3% (U.S. down ~0.5%, LatAm mid‑single digits) and that Q1 cold & flu will be below last year; they expect the U.S. to return to growth in 2026 and cited confirmed Q2 shelving/reset wins. Key financial/efficiency metrics: gross margin improved 220 basis points in 2025, supply‑chain productivity guidance of 50–80 bps pa going forward, and expected high‑single‑digit operating growth at constant currency funded by $175–200m of gross savings from the reorganisation. Marketing and innovation: A&P up ~7.5% (to ~20.5% of sales) and R&D up ~7.7%, with roughly half incremental A&P to Oral Health and half to emerging markets; working media +12%, ROI up mid‑single digits, digital ~60% of working media. Other metrics called out include 70% of cold & flu sales outside the U.S., 60% of the business gaining/maintaining share, 80% of Asia‑Pac growth from volume, India double‑digit growth, China mid‑single digits with e‑commerce ~40% of sales and Douyin >100% growth, and 18 brands making 90% of Amazon sales (16 of 18 higher share online than offline).Haleon PLC Sponsored ADR Financial Statement Overview
Summary
Margins and returns are improving (gross margin ~64.8% in 2025; net margin ~15.1%), and free cash flow conversion is solid (FCF ~86% of net income) with a large 2025 uplift. The main offsets are soft recent revenue (down ~2.1% in 2025) and a meaningful debt load (~8.6B) despite improving leverage.Income Statement
Profitability is solid and improving: gross margin rose to ~64.8% in 2025 (vs ~61.6% in 2023) and net margin expanded to ~15.1% (vs ~9.3% in 2023), with EBIT/EBITDA margins also trending higher. However, the top line has been soft recently with revenue down about 2.1% in 2025 and roughly flat-to-down in 2024, which tempers the otherwise strong margin-driven earnings momentum.72
Positive
Balance Sheet
Leverage is moderate with debt-to-equity improving to ~0.52 in 2025 from ~0.62 in 2024, and equity remains sizable relative to assets. Returns on equity have also stepped up to ~9.9% in 2025 from ~6–9% in prior years, indicating better profitability on the capital base. The key watch-out is the structurally meaningful debt load (total debt still ~8.6B in 2025), which reduces flexibility if growth remains sluggish.63
Positive
Cash Flow
Cash generation is healthy: free cash flow is close to reported earnings (free cash flow at ~86% of net income in 2025; similar levels in prior years), suggesting good earnings quality. Free cash flow jumped strongly in 2025 (up ~90.7%), though this comes after relatively modest growth in 2023–2024, implying some volatility. Operating cash flow coverage is moderate (mid-0.4x range recently), so while cash conversion is good, it is not exceptionally strong on this measure.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.79B | 11.23B | 11.30B | 10.86B | 9.54B |
| Gross Profit | 6.99B | 6.95B | 6.96B | 6.58B | 5.95B |
| EBITDA | 2.77B | 2.51B | 2.35B | 2.18B | 2.21B |
| Net Income | 1.63B | 1.44B | 1.05B | 1.06B | 1.39B |
Balance Sheet | |||||
| Total Assets | 32.57B | 34.31B | 34.05B | 34.81B | 34.45B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 2.25B | 1.04B | 684.00M | 414.00M |
| Total Debt | 8.59B | 10.10B | 9.46B | 10.44B | 991.00M |
| Total Liabilities | 16.12B | 18.09B | 17.33B | 18.36B | 7.97B |
| Stockholders Equity | 16.40B | 16.17B | 16.61B | 16.33B | 26.36B |
Cash Flow | |||||
| Free Cash Flow | 1.97B | 2.05B | 1.76B | 1.74B | 1.06B |
| Operating Cash Flow | 2.29B | 2.30B | 2.10B | 2.06B | 1.36B |
| Investing Cash Flow | -567.29M | 528.00M | -134.00M | -8.78B | -33.00M |
| Financing Cash Flow | -2.55B | -1.54B | -1.57B | 6.91B | -1.24B |
Haleon PLC Sponsored ADR Technical Analysis
Positive
9.52
Price Trends
10.42
Positive
9.92
Positive
9.95
Positive
Market Momentum
0.16
Positive
57.21
Neutral
50.16
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 10.94, below the 50-day MA of 10.42, and below the 200-day MA of 9.95, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 50.16 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $11.79B | 18.45 | ― | 0.64% | 10.63% | 6.35% | |
66 Neutral | $48.61B | 22.58 | 10.38% | 1.74% | 0.58% | 45.74% | |
63 Neutral | $39.41B | 27.82 | 21.37% | ― | -0.25% | ― | |
61 Neutral | $59.10B | 75.67 | 1.62% | 3.86% | -1.98% | -86.20% | |
56 Neutral | $17.19B | -5.04 | -21.08% | 3.99% | -6.40% | -320.23% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.82B | -1.29 | -38.66% | 8.48% | -2.55% | 66.00% |
* Healthcare Sector Average
HLN
Haleon PLC Sponsored ADR
11.07
0.68
6.52%
RDY
Dr Reddy's Laboratories
14.38
1.68
13.26%
VTRS
Viatris
14.93
6.05
68.13%
PRGO
Perrigo Company
13.22
-14.23
-51.83%
TEVA
Teva Pharmaceutical
33.86
17.86
111.63%
TAK
Takeda Pharmaceutical Company
18.75
4.23
29.09%
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.