# Halma plc (HLMA.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Industrial Conglomerates. Price 3734p, market value 14.2 billionp.

## Valuation
- **P/E (trailing): 38.1×** (5-yr avg 3607.4×, 3-yr avg 3507.5×). Halma plc trades at 38.1× trailing earnings, well below its own five-year average of 3607.4×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 26.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.02**. A PEG of 1.02 is in the range usually read as fairly priced for its growth.
- **Price / sales: 3.3×**. Each dollar of revenue is priced at 3.3×.
- **Price / book: 6.5×**. The shares trade at 6.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 14.7×**. Enterprise value is 14.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.0%** (5-yr avg 0.0%). Free cash flow equals 5.0% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.6%**. The inverse of the P/E: 2.6% of the price is earned each year.

## Profitability
- **Gross margin: 27.3%**. Halma plc keeps 27.3% of revenue after the direct cost of what it sells.
- **Operating margin: 19.4%**. 19.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.4%**. 14.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.2%**. 17.2% on shareholders' equity is solid.
- **Return on invested capital: 21.4%**. Return on all capital, debt included, is 21.4%: comfortably above what that capital costs.
- **Return on assets: 15.9%**. Each dollar of assets produces 15.9% of profit.

## Growth
- **Revenue growth (1 yr): 14.9%** (3-yr 11.7%/yr, 5-yr 14.4%/yr). Revenue grew 14.9% over the last year, against 14.4% a year compounded over five years.
- **EPS growth (1 yr): 25.6%** (3-yr 16.5%/yr, 5-yr 12.7%/yr). Earnings per share rose 25.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 26.9%/yr**. Free cash flow has compounded at 26.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.42**. Debt is 0.42 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.9×**. Operating profit covers interest 11.9× over, a safe margin.
- **Current ratio: 2.14** (quick 1.53). Current assets cover the next year's liabilities 2.14 times.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.69%** (0p per share, trailing). Halma plc yields 0.69%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 24%** (22% of free cash flow). 24% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 11**. 11 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 7.0%). The dividend has grown 7.1% a year over five years.
- **Shareholder yield: 1.0%**. Dividends plus net buybacks return 1.0% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (16 analysts). 16 analysts cover Halma plc; the consensus is buy, with an average price target of 4372p (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 12.0%** (YTD 2.7%, 3-mo -23.1%). The shares are up 12.0% over twelve months including dividends.
- **From 52-week high: -23.8%** (15.2% above the low). Trading 24% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.90** (volatility 31%). Beta of 0.90 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HLMA.L · Page: https://foliofundamentals.com/stocks/hlma.l

Not investment advice.