# Halma (HLMA.LSE)

Canonical: https://gigainvestors.com/s/HLMA.LSE

Analysis as of: 2026-10-16T07:34:58.053Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 3,398.00 per share; close as of 2026-10-15.

Estimated value: low GBX 1,518.14 per share, central GBX 2,203.47 per share, high GBX 2,585.71 per share. Buy at or below the central value GBX 2,203.47 per share. Valuation as of 2026-10-16T07:34:58.053Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.17×

- FY2019: 0.18×

- FY2020: 0.18×

- FY2021: 0.19×

- FY2022: 0.19×

- FY2023: 0.17×

- FY2024: 0.18×

- FY2025: 0.18×

- FY2026: 0.20×

### moat: pass

- ROIC, median of available years: 29.8%

- ROIC, second-lowest year: 24.6%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 49.7%

- Recent gross margin (lower of latest and 3-year median): 49.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 15.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 37.3%

- FY2018: 40.3%

- FY2019: 38.4%

- FY2020: 30.0%

- FY2021: 33.0%

- FY2022: 29.7%

- FY2023: 24.0%

- FY2024: 24.6%

- FY2025: 27.0%

- FY2026: 27.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 1.6B

- Net income, five-year total: GBP 1.4B

- Return on incremental invested capital: 255.7%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 5.6 pp

- Working capital / revenue, final three-year average: 29.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.14×

- FY2023: 1.16×

- FY2024: 1.14×

- FY2025: 1.13×

- FY2026: 1.15×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 38.4% vs 27.0%

- Per-share earnings: 0.34 to 0.78 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: GBP 11B

- Cumulative retained earnings: GBP 1.5B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 10.9%

- Per-share value change: GBP 0.44

- Per-share value, starting three-year median: GBP 0.34

- Per-share value, ending three-year median: GBP 0.78

- Buybacks concentrated in cheaper years (correlation): -0.38

- Average buyback yield: 0.2%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 2.6B

- Cumulative net income, 10 years: GBP 2.3B

- ROIC, first three-year median: 38.4%

- ROIC, last three-year median: 27.0%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.34

- FY2018: GBP 0.41

- FY2019: GBP 0.44

- FY2020: GBP 0.49

- FY2021: GBP 0.54

- FY2022: GBP 0.64

- FY2023: GBP 0.62

- FY2024: GBP 0.71

- FY2025: GBP 0.78

- FY2026: GBP 0.98

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 1.21×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.22×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.04×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.1%

- FY2018: -1.3%

- FY2019: -3.2%

- FY2020: -3.7%

- FY2021: -4.0%

- FY2022: 0.3%

- FY2023: -0.8%

- FY2024: -3.9%

- FY2025: -6.0%

- FY2026: -2.2%

## Holders

## Price story

Down 27% since May 2026 · "British device maker Halma's shares slump on slower annual growth forecast" (finance.yahoo.com, Jun 2026) · sales +14.9%

Story as of 2026-10-16T10:00:03.223Z; price observation 2026-10-15.

Price needs cash profits to grow 12.9% a year for ten years

- 2025-11-20: Halma lifts annual revenue forecast on strong US data centre demand ([finance.yahoo.com](https://finance.yahoo.com/news/halma-lifts-annual-revenue-forecast-082137901.html))

- 2026-06-11: British device maker Halma's shares slump on slower annual growth forecast ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/british-device-maker-halmas-shares-085228170.html))

### Sales · FY2025–2026

sales +14.9%; source https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml; observed 2026-06-25.

- FY2017: GBP 962M 

- FY2018: GBP 1.1B 

- FY2019: GBP 1.2B 

- FY2020: GBP 1.3B 

- FY2021: GBP 1.3B 

- FY2022: GBP 1.5B 

- FY2023: GBP 1.9B 

- FY2024: GBP 2.0B 

- FY2025: GBP 2.2B 

- FY2026: GBP 2.6B 

### Gross margin · FY2026

gross margin 49.8%; source https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml; observed 2026-06-25.

- FY2017: 53.2% 

- FY2018: 53.0% 

- FY2019: 49.7% 

- FY2020: 47.2% 

- FY2021: 46.5% 

- FY2022: 47.5% 

- FY2023: 47.4% 

- FY2024: 49.7% 

- FY2025: 50.4% 

- FY2026: 49.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in conglomerates; annual sales are GBP 2.6 billion.

- Source: https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: revenue 2582300000; grossProfit 1286900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HLMA.LSE: 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 also designs and manufactures differentiated orthobiologic products. Halma plc was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.

### Why customers stay

Margins ranged from 49.7% to 50.4% during 2024–26; it earns 29.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: grossProfit / revenue = 49.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: grossProfit / revenue = 50.4%.

- Source: https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: grossProfit / revenue = 49.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); 10-year return on capital observations [[2017,0.3728349604885575],[2018,0.4030303424412114],[2019,0.3835092922586839],[2020,0.29964509343492285],[2021,0.32994578651430617],[2022,0.2972095637925054],[2023,0.24038437911364635],[2024,0.2464096215016065],[2025,0.26950769312549744],[2026,0.2791678045801666]]; median 0.2984273286137141. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 47% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml (filed 2026-06-25); Gross margin observations: [[2021,0.46548323471400394],[2022,0.47485740510063595],[2023,0.473823402417962]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 33.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2017: growth capex 0; upkeep 21875000; owner earnings 165460000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2018: growth capex 0; upkeep 20200000; owner earnings 196313000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2019: growth capex 0; upkeep 26400000; owner earnings 209600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2020: growth capex 0; upkeep 48800000; owner earnings 208000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2021: growth capex 0; upkeep 42200000; owner earnings 238500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2022: growth capex 0; upkeep 40000000; owner earnings 278580000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2023: growth capex 0; upkeep 45900000; owner earnings 272520000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: growth capex 0; upkeep 51600000; owner earnings 306060000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: growth capex 0; upkeep 59400000; owner earnings 335380000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: growth capex 0; upkeep 54900000; owner earnings 426840000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Dividend observations: [[2017,49788000],[2018,53400000],[2019,57200000],[2020,61200000],[2021,63700000],[2022,68700000],[2023,73300000],[2024,78200000],[2025,83800000],[2026,89700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: cash repurchases 33500000 GBP.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HLMA.LSE SharesStats.PercentInsiders = 1.0710000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.9% yearly over ten years; actual growth was 12.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Ten-year compound average after fade. Initial solved rate 0.23217769734621352. Price 3398; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.3459047267842326 → FY2026 1.124280927997977. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,048.00 per share

- 2016-11: GBX 943.00 per share

- 2016-12: GBX 897.50 per share

- 2017-01: GBX 925.00 per share

- 2017-02: GBX 972.50 per share

- 2017-03: GBX 1,024.00 per share

- 2017-04: GBX 1,053.00 per share

- 2017-05: GBX 1,146.00 per share

- 2017-06: GBX 1,100.00 per share

- 2017-07: GBX 1,099.00 per share

- 2017-08: GBX 1,093.00 per share

- 2017-09: GBX 1,120.00 per share

- 2017-10: GBX 1,182.00 per share

- 2017-11: GBX 1,280.00 per share

- 2017-12: GBX 1,260.00 per share

- 2018-01: GBX 1,277.00 per share

- 2018-02: GBX 1,205.00 per share

- 2018-03: GBX 1,179.00 per share

- 2018-04: GBX 1,223.00 per share

- 2018-05: GBX 1,350.00 per share

- 2018-06: GBX 1,370.00 per share

- 2018-07: GBX 1,407.00 per share

- 2018-08: GBX 1,432.00 per share

- 2018-09: GBX 1,445.00 per share

- 2018-10: GBX 1,328.00 per share

- 2018-11: GBX 1,372.00 per share

- 2018-12: GBX 1,364.00 per share

- 2019-01: GBX 1,400.00 per share

- 2019-02: GBX 1,554.00 per share

- 2019-03: GBX 1,672.00 per share

- 2019-04: GBX 1,799.50 per share

- 2019-05: GBX 1,816.00 per share

- 2019-06: GBX 2,020.00 per share

- 2019-07: GBX 1,990.00 per share

- 2019-08: GBX 1,963.00 per share

- 2019-09: GBX 1,971.00 per share

- 2019-10: GBX 1,873.50 per share

- 2019-11: GBX 2,106.00 per share

- 2019-12: GBX 2,116.00 per share

- 2020-01: GBX 2,107.00 per share

- 2020-02: GBX 1,929.00 per share

- 2020-03: GBX 1,921.00 per share

- 2020-04: GBX 2,090.00 per share

- 2020-05: GBX 2,330.00 per share

- 2020-06: GBX 2,303.00 per share

- 2020-07: GBX 2,178.00 per share

- 2020-08: GBX 2,218.00 per share

- 2020-09: GBX 2,345.00 per share

- 2020-10: GBX 2,368.00 per share

- 2020-11: GBX 2,216.00 per share

- 2020-12: GBX 2,449.00 per share

- 2021-01: GBX 2,469.00 per share

- 2021-02: GBX 2,267.00 per share

- 2021-03: GBX 2,374.00 per share

- 2021-04: GBX 2,588.00 per share

- 2021-05: GBX 2,604.00 per share

- 2021-06: GBX 2,692.00 per share

- 2021-07: GBX 2,889.00 per share

- 2021-08: GBX 3,003.00 per share

- 2021-09: GBX 2,842.00 per share

- 2021-10: GBX 2,962.00 per share

- 2021-11: GBX 3,001.00 per share

- 2021-12: GBX 3,200.00 per share

- 2022-01: GBX 2,496.00 per share

- 2022-02: GBX 2,411.00 per share

- 2022-03: GBX 2,510.00 per share

- 2022-04: GBX 2,475.00 per share

- 2022-05: GBX 2,229.00 per share

- 2022-06: GBX 2,009.00 per share

- 2022-07: GBX 2,299.00 per share

- 2022-08: GBX 2,075.00 per share

- 2022-09: GBX 2,045.00 per share

- 2022-10: GBX 2,115.00 per share

- 2022-11: GBX 2,172.00 per share

- 2022-12: GBX 1,974.00 per share

- 2023-01: GBX 2,148.00 per share

- 2023-02: GBX 2,164.00 per share

- 2023-03: GBX 2,229.00 per share

- 2023-04: GBX 2,308.00 per share

- 2023-05: GBX 2,409.00 per share

- 2023-06: GBX 2,277.00 per share

- 2023-07: GBX 2,236.00 per share

- 2023-08: GBX 2,144.00 per share

- 2023-09: GBX 1,938.50 per share

- 2023-10: GBX 1,845.00 per share

- 2023-11: GBX 2,131.00 per share

- 2023-12: GBX 2,284.00 per share

- 2024-01: GBX 2,193.00 per share

- 2024-02: GBX 2,302.00 per share

- 2024-03: GBX 2,368.00 per share

- 2024-04: GBX 2,207.00 per share

- 2024-05: GBX 2,226.00 per share

- 2024-06: GBX 2,706.00 per share

- 2024-07: GBX 2,662.00 per share

- 2024-08: GBX 2,606.00 per share

- 2024-09: GBX 2,608.00 per share

- 2024-10: GBX 2,475.00 per share

- 2024-11: GBX 2,708.00 per share

- 2024-12: GBX 2,689.00 per share

- 2025-01: GBX 3,043.00 per share

- 2025-02: GBX 2,800.00 per share

- 2025-03: GBX 2,581.00 per share

- 2025-04: GBX 2,756.00 per share

- 2025-05: GBX 2,906.00 per share

- 2025-06: GBX 3,200.00 per share

- 2025-07: GBX 3,252.00 per share

- 2025-08: GBX 3,288.00 per share

- 2025-09: GBX 3,450.00 per share

- 2025-10: GBX 3,546.00 per share

- 2025-11: GBX 3,560.00 per share

- 2025-12: GBX 3,538.00 per share

- 2026-01: GBX 3,544.00 per share

- 2026-02: GBX 4,184.00 per share

- 2026-03: GBX 3,802.00 per share

- 2026-04: GBX 4,407.00 per share

- 2026-05: GBX 4,682.00 per share

- 2026-06: GBX 3,934.00 per share

- 2026-07: GBX 3,530.00 per share

- 2026-08: GBX 3,632.00 per share

- 2026-09: GBX 3,502.00 per share

- 2026-10: GBX 3,468.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 633.49 per share, central GBX 918.37 per share, high GBX 1,077.26 per share

- FY2018: low GBX 721.18 per share, central GBX 1,046.09 per share, high GBX 1,227.31 per share

- FY2019: low GBX 797.76 per share, central GBX 1,156.99 per share, high GBX 1,357.34 per share

- FY2020: low GBX 683.94 per share, central GBX 775.35 per share, high GBX 897.04 per share

- FY2021: low GBX 685.30 per share, central GBX 775.88 per share, high GBX 896.46 per share

- FY2022: low GBX 828.50 per share, central GBX 938.12 per share, high GBX 1,084.04 per share

- FY2023: low GBX 1,211.23 per share, central GBX 1,675.37 per share, high GBX 1,959.74 per share

- FY2024: low GBX 1,177.23 per share, central GBX 1,618.41 per share, high GBX 1,893.72 per share

- FY2025: low GBX 1,338.73 per share, central GBX 1,880.01 per share, high GBX 2,195.55 per share

- FY2026: low GBX 1,510.23 per share, central GBX 2,191.99 per share, high GBX 2,572.24 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138007FRGLUR9KGBT40/2026-03-31/ESEF/GB/0/2138007FRGLUR9KGBT40-2026-03-31/reports/2138007FRGLUR9KGBT40-2026-03-31-T01.xhtml); period 2026-03-31, filed 2026-06-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.