Halma (HLMA.L)
Industrials · LSE · UK
Fundamentals
Valuation and ratings
Halma trades at £36.76, close to the £31.85 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 70 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 37.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Halma
Halma plc, together with its subsidiaries, provides technology solutions in the safety, health, and environmental markets in the United States, Mainland Europe, the United Kingdom, the Asia Pacific, Africa, the Middle East, and internationally. The company operates in three segments: Safety, Environmental & Analysis, and Healthcare. Its Safety segment provides products that protect people, assets, and infrastructure used in public and commercial spaces and in industrial and logistics operations. This segment serves fire safety, public safety, worker safety, and infrastructure and asset safety markets. The Environmental & Analysis segment offers technologies that monitor the environment used in optical solutions, water analysis and treatment system, and environmental monitoring technologies. Its Healthcare segment provides technologies and digital solutions for healthcare enablement, discovery, prevention, and diagnostics, and therapeutic solutions. The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.
HLMA.L passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Halma (HLMA.L) undervalued?
Against our discounted cash flow estimate of £31.85, HLMA.L at £36.76 is 13% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is HLMA.L's P/E ratio?
HLMA.L trades at 37.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.