Haleon PLC Sponsored ADR (HLN) AI Stock Analysis

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Haleon PLC Sponsored ADR

(NYSE:HLN)

Rating:69Neutral

Price Target:

$11.00

▲(13.29% Upside)

Haleon PLC's overall stock score reflects strong financial performance and efficient cash flow generation, offset by mixed technical indicators and moderate valuation. The earnings call provided a balanced view of strengths in international markets and challenges in North America. The company's ability to navigate these challenges and capitalize on growth opportunities will be crucial for future performance.

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

Market Cap

$43.21B

Dividend Yield1.81%

Average Volume (3M)10.35M

Price to Earnings (P/E)22.3

Beta (1Y)0.20

Revenue Growth0.58%

EPS Growth45.74%

CountryUS

Employees24,561

SectorHealthcare

Sector Strength47

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.24

Shares Outstanding4,482,723,000

10 Day Avg. Volume7,832,064

30 Day Avg. Volume10,351,821

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.34

Enterprise Value/Revenue5.14

Enterprise Value/Gross Profit8.21

Enterprise Value/Ebitda23.91

Forecast

1Y Price Target

$12.18

Price Target Upside25.44% 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 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: |

Next Earnings Date:Feb 26, 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 demonstrates robust financial stability with strong profitability margins and efficient cash flow generation. However, stagnant revenue growth presents potential challenges in expanding market share. The company's solid balance sheet, with a balanced debt profile and substantial equity, supports long-term sustainability.

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

Neutral

Last Price9.71

Price Trends

50DMA

9.83

Negative

100DMA

10.16

Negative

200DMA

9.88

Negative

Market Momentum

MACD

-0.01

Negative

RSI

50.31

Neutral

STOCH

28.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLN, the sentiment is Neutral. The current price of 9.71 is above the 20-day moving average (MA) of 9.58, below the 50-day MA of 9.83, and below the 200-day MA of 9.88, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
RDY	75 Outperform	$12.02B	18.08	17.48%	0.64%	13.13%	-0.47%
TAK	71 Outperform	$47.25B	49.51	1.99%	4.05%	1.36%	-1.81%
HLN	69 Neutral	$43.21B	22.26	9.20%	1.81%	0.58%	45.74%
VTRS	59 Neutral	$12.14B	―	-19.77%	4.61%	-7.47%	-438.39%
TEVA	58 Neutral	$20.55B	―	-2.31%	―	2.43%	64.37%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
PRGO	51 Neutral	$3.26B	―	-1.32%	4.77%	-2.32%	35.46%

* Healthcare Sector Average

Performance Comparison

HLN

Haleon PLC Sponsored ADR

9.71

-0.20

-2.02%

RDY

Dr Reddy's Laboratories

14.24

-2.13

-13.01%

VTRS

Viatris

10.42

-0.92

-8.11%

PRGO

Perrigo Company

23.89

-3.97

-14.25%

TEVA

Teva Pharmaceutical

18.05

-0.68

-3.63%

TAK

Takeda Pharmaceutical Company

14.86

0.50

3.48%

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 26, 2025