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Halma plc
(LSE:HLMA)
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Rating:67Neutral
Price Target:
3,828.00 p
▲(7.05% Upside)
Action:Reiterated
Date:10/11/26
The score is primarily supported by strong financial performance (consistent growth, healthy profitability, and solid free cash flow with moderate leverage). This is tempered by weaker technicals (below key longer-term moving averages and negative MACD) and a demanding valuation (P/E of 36 with a low dividend yield).
Positive Factors
Consistent revenue growth
Consistent multi-year revenue growth, including a clear step-up in the latest annual period, indicates sustained demand across Halma’s safety, healthcare, and environmental activities. This supports operating scale, strengthens the platform for future investment, and reduces dependence on a single reporting period.
Negative Factors
Rising total debt
Although leverage remains moderate, the upward trend in total debt could gradually reduce financial flexibility if profitability or cash conversion weakens. Higher absolute obligations may constrain acquisition, investment, or shareholder-return capacity and increase sensitivity to future funding conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Consistent multi-year revenue growth, including a clear step-up in the latest annual period, indicates sustained demand across Halma’s safety, healthcare, and environmental activities. This supports operating scale, strengthens the platform for future investment, and reduces dependence on a single reporting period.
Read all positive factors
Halma plc (HLMA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£13.02B
Dividend Yield0.72%
Average Volume (3M)950.26K
Price to Earnings (P/E)35.2
Beta (1Y)0.95
Revenue Growth14.87%
EPS Growth25.57%
CountryUK
Employees9,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.98
Shares Outstanding379,645,360
10 Day Avg. Volume978,500
30 Day Avg. Volume950,261
Financial Highlights & Ratios
PEG Ratio1.52
Price to Book (P/B)6.62
Price to Sales (P/S)5.56
P/FCF Ratio36.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£4,468.33Price Target Upside24.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.34
Revenue Forecast (FY)£2.97B
Halma plc Business Overview & Revenue Model
Company Description
Halma plc, a company established in 1894 and headquartered in Amersham, United Kingdom, specializes in delivering innovative technological solutions across critical safety, health, and environmental sectors. Its operations are organized into three...
How the Company Makes Money
Halma makes money primarily by selling specialized safety, health, and environmental technology products through its portfolio of operating companies (subsidiaries). Its main revenue stream is product sales to business and institutional customers ...
Halma plc Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance by Halma, with record half-year results, robust growth across sectors, significant investments, and a strong balance sheet. However, challenges such as cash conversion being below KPI and currency headwinds were noted. The strong positive aspects significantly outweighed the lowlights.Positive Updates
Record Half-Year Results
Halma reported another set of record half-year results for Fiscal Year 2026, with headline revenue growth of 15% and EBIT growth of 27%. Organic growth was strong across all sectors, particularly in Photonics.
Negative Updates
Cash Conversion Below KPI
Cash conversion was below the KPI at 79%, due to substantial investments in R&D, acquisitions, and working capital.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Half-Year Results
Halma reported another set of record half-year results for Fiscal Year 2026, with headline revenue growth of 15% and EBIT growth of 27%. Organic growth was strong across all sectors, particularly in Photonics.
Read all positive updates
Company Guidance
During the call, Halma reported strong financial results for the first half of the fiscal year 2026, driven by a diverse range of performance metrics across its sectors. The company achieved 15% headline revenue growth and a 27% increase in EBIT, with an organic revenue growth rate of 16.7%. Photonics significantly contributed to this growth, accounting for half of the organic increase. Halma maintained a robust margin of 22.3%, up by 160 basis points, and achieved a 16.2% return on capital, an increase of 190 basis points. Strategic investments totaled GBP 300 million, including GBP 60 million in R&D and GBP 130 million in acquisitions, supporting future growth. Despite a lower cash conversion rate of 79%, the company expects to align with its 90% KPI by year-end. Notably, Safety sector margins reached a historic high of 27%, with a 280 basis point increase. The Environmental & Analysis sector, excluding a one-off benefit, saw organic revenue and profit growth of 36% and 38%, respectively. Halma also upgraded its full-year guidance, anticipating mid-teens percentage organic constant currency revenue growth and an adjusted EBIT margin of around 22%.Halma plc Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.58B | 2.25B | 2.03B | 1.85B | 1.53B |
| Gross Profit | 1.29B | 1.13B | 1.01B | 877.90M | 724.30M |
| EBITDA | 656.80M | 537.30M | 475.50M | 410.60M | 373.40M |
| Net Income | 372.30M | 296.40M | 268.80M | 234.50M | 244.40M |
Balance Sheet | |||||
| Total Assets | 3.71B | 3.26B | 3.00B | 2.79B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 143.40M | 313.20M | 142.70M | 169.50M | 157.40M |
| Total Debt | 913.40M | 849.00M | 795.90M | 766.20M | 432.20M |
| Total Liabilities | 1.54B | 1.36B | 1.26B | 1.19B | 792.80M |
| Stockholders Equity | 2.17B | 1.90B | 1.74B | 1.60B | 1.40B |
Cash Flow | |||||
| Free Cash Flow | 398.90M | 433.00M | 333.40M | 195.30M | 189.40M |
| Operating Cash Flow | 453.80M | 492.40M | 385.00M | 241.20M | 229.40M |
| Investing Cash Flow | -504.70M | -163.90M | -286.30M | -369.60M | -134.90M |
| Financing Cash Flow | -121.10M | -155.10M | -119.70M | 138.50M | -73.70M |
Halma plc Technical Analysis
Neutral
3576.00
Price Trends
3508.32
Negative
3621.56
Negative
3855.35
Negative
Market Momentum
-32.38
Negative
50.13
Neutral
93.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HLMA, the sentiment is Neutral. The current price of 3576 is above the 20-day moving average (MA) of 3431.30, above the 50-day MA of 3508.32, and below the 200-day MA of 3855.35, indicating a neutral trend. The MACD of -32.38 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 93.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:HLMA.
Halma plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £6.75B | 21.01 | 32.41% | 1.23% | 7.67% | 45.97% | |
75 Outperform | £9.65B | 51.03 | 18.55% | 0.88% | 13.31% | 13.05% | |
68 Neutral | £9.10B | 28.51 | 29.86% | 2.78% | 3.94% | -8.14% | |
67 Neutral | £13.02B | 35.18 | 17.92% | 0.72% | 14.87% | 25.57% | |
65 Neutral | £3.59B | 22.43 | 11.55% | 2.92% | -0.77% | 6.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £7.39B | 4.29 | 92.97% | 2.29% | -33.55% | 4.29% |
* Industrials Sector Average
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Halma plc Corporate Events
Business Operations and StrategyExecutive/Board Changes
Halma awards free shares to senior executives under incentive plan
Positive
Oct 1, 2026
Halma plc has granted awards of free ordinary shares to several members of its senior management under the Halma Group Share Incentive Plan, reinforcing equity participation among the company’s top decision-makers. Recipients include Chief E...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Halma lifts margin guidance as record dealmaking fuels growth
Positive
Sep 24, 2026
Halma reported strong first-half trading, with broad-based growth despite economic and geopolitical uncertainty and reaffirmed its position as a compounding growth business underpinned by its decentralised Sustainable Growth Model. The group conti...
Business Operations and StrategyM&A Transactions
Halma buys U.S. water-quality specialist Pyxis in $170m deal
Positive
Sep 2, 2026
Halma has agreed to acquire Pyxis, a specialist in real-time water quality monitoring and analysis, in a deal valuing the three Pyxis companies at an initial $170m, with up to $30m of additional earn-outs tied to performance through March 2029. Py...
Regulatory Filings and Compliance
Halma CEO Marc Ronchetti Discloses £1.8m Share Sale Under Market Rules
Neutral
Aug 10, 2026
Halma plc, a U.K.-based specialist in safety, health and environmental technologies, develops products and services that protect life and support critical industrial, medical and environmental applications. Its shares are listed on the London Stoc...
Regulatory Filings and Compliance
Halma Executive Jennifer Ward Sells Over £779,000 in Company Shares
Neutral
Jul 24, 2026
Halma has disclosed that its Chief Talent, Culture and Communications Executive, Jennifer Ward, sold a total of 21,393 ordinary shares in two transactions on 22 and 23 July 2026 on the London Stock Exchange. The sale, conducted at an aggregated pr...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Halma shareholders back all resolutions at 2026 AGM, reinforcing board mandate
Positive
Jul 23, 2026
Halma plc reported that all 21 resolutions at its 2026 Annual General Meeting were approved by shareholders, including adoption of the annual report, declaration of a final dividend and strong support for the board’s remuneration report. The...
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.