# Haleon (HLN.LSE)

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

Analysis as of: 2026-10-16T07:34:01.014Z. Financial observations: FY2019–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 374.80 per share; close as of 2026-10-15.

Estimated value: low GBX 188.13 per share, central GBX 212.35 per share, high GBX 244.58 per share. Buy at or below the central value GBX 212.35 per share. Valuation as of 2026-10-16T07:34:01.014Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% 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

- 3 revenue declines in the last 10 years (informational)

- Financial history: 7 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.11×

- FY2020: 0.16×

- FY2021: 0.17×

- FY2022: 0.17×

- FY2023: 0.18×

- FY2024: 0.20×

- FY2025: 0.22×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.7%

- ROIC, second-lowest year: 6.6%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 60.7%

- Recent gross margin (lower of latest and 3-year median): 60.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 4.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 3.6%

- FY2020: 6.6%

- FY2021: 7.7%

- FY2022: 7.1%

- FY2023: 8.2%

- FY2024: 10.7%

- FY2025: 12.4%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 6.5B

- Net income, five-year total: GBP 6.6B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -8.3 pp

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

- FY2021: 0.96×

- FY2022: 0.97×

- FY2023: 0.97×

- FY2024: 0.99×

- FY2025: 1.01×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.6% vs 10.7%

- Per-share earnings: 0.12 to 0.16 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.5%

- Diluted shares, 5-year annual growth: -0.5%

- Per-share value growth: 6.1%

- Per-share value change: GBP 0.03

- Per-share value, starting three-year median: GBP 0.12

- Per-share value, ending three-year median: GBP 0.16

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 1.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 6.6%

- ROIC, last three-year median: 10.7%

Chart: Earnings per share; fiscal year observations.

- FY2019: GBP 0.07

- FY2020: GBP 0.12

- FY2021: GBP 0.15

- FY2022: GBP 0.11

- FY2023: GBP 0.11

- FY2024: GBP 0.16

- FY2025: GBP 0.19

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.14×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.58×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.56×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -0.4%

- FY2020: -0.8%

- FY2021: 0.1%

- FY2022: -2.9%

- FY2023: -3.1%

- FY2024: -2.5%

- FY2025: -3.0%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Graham Kahn](https://gigainvestors.com/KB): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.4% a year for ten years · "Haleon Shares Fall on Cut to Organic Revenue Guidance" (finance.yahoo.com, Jul 2025) · sales -1.8%

Story as of 2026-10-16T09:59:58.781Z; price observation 2026-10-15.

Price needs cash profits to grow 8.4% a year for ten years

- 2025-07-31: Haleon Shares Fall on Cut to Organic Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/m/a7e8cab6-26cd-3f39-a484-cc2dbdf41383/haleon-shares-fall-on-cut-to.html))

### Sales · FY2024–2025

sales -1.8%; source https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html; observed 2026-03-18.

- FY2019: GBP 8.5B 

- FY2020: GBP 9.9B 

- FY2021: GBP 9.5B 

- FY2022: GBP 11B 

- FY2023: GBP 11B 

- FY2024: GBP 11B 

- FY2025: GBP 11B 

### Gross margin · FY2025

gross margin 64.8%; source https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html; observed 2026-03-18.

- FY2019: 56.6% 

- FY2020: 59.7% 

- FY2021: 62.3% 

- FY2022: 62.0% 

- FY2023: 59.7% 

- FY2024: 60.7% 

- FY2025: 64.8% 

## Owner memo

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

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are GBP 11 billion.

- Source: https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html (filed 2026-03-18); FY2025: revenue 11030000000; grossProfit 7144000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HLN.LSE: Haleon plc, together with its subsidiaries, engages in the research, 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 offers oral health products, such as toothpastes, mouth washes, and denture care products under the Sensodyne, Polident, Parodontax, and Biotene brands; and vitamins, minerals, and supplements under Centrum, Emergen-C, Caltrate brands. It also provides various over-the-counter products comprising nasal drops, and cold, flu, and allergy relief products under Theraflu, and Flonase brands for respiratory issues; and pain relief products under Voltaren, Panadol, and Advil brands; and antacids and antihistamine products under TUMS, ENO, and Fenistil brands for digestive health and other issues. Haleon plc has a collaboration agreement with Microsoft to scale digital, data and AI capabilities across the business and accelerate delivery of its global win as one strategy. Haleon plc was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. The company was founded in 1715 and is headquartered in Weybridge, the United Kingdom.

### Why customers stay

Margins ranged from 59.7% to 64.8% during 2023–25; it earns 7.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: grossProfit / revenue = 59.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 60.7%.

- Source: https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html (filed 2026-03-18); FY2025: grossProfit / revenue = 64.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 7-year return on capital observations [[2019,0.03575618678657518],[2020,0.06589978350443466],[2021,0.07709954346359268],[2022,0.07134475576087483],[2023,0.08156009431382163],[2024,0.10733957453434283],[2025,0.12399128112872979]]; median 0.07709954346359268. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 7 years; bought back GBP 654 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 0; upkeep 243000000; owner earnings 639800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 13000000; upkeep 305000000; owner earnings 1117200000. Growth capex / owner earnings = 0.01163623344074472.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 0; upkeep 298000000; owner earnings 1336600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2022: growth capex 41000000; upkeep 287000000; owner earnings 1027800000. Growth capex / owner earnings = 0.03989102938314847.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 27000000; upkeep 309000000; owner earnings 1021600000. Growth capex / owner earnings = 0.0264291307752545.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 0; upkeep 318000000; owner earnings 1423400000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html (filed 2026-03-18); FY2025: growth capex 0; upkeep 322000000; owner earnings 1678400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2019,1152000000],[2020,2371000000],[2021,1148000000],[2022,2682000000],[2023,388000000],[2024,570000000],[2025,612000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html (filed 2026-03-18); FY2025: cash repurchases 654000000 GBP.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HLN.LSE SharesStats.PercentInsiders = 0.065 percentage points; cache date 2026-10-16.

### What could break it

Failure to achieve our SBTi-aligned target for Scope 1 and 2 emissions can lead to a medium risk.

- Source: https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html (filed 2026-03-18); Potential impacts included in our Paris Ambition (1.5°C) scenario analysis included the following (the ‘No Policy’ (4°C) scenario was not relevant): — Direct increase to overhead costs from Scope 1 and 2 emissions (e.g. cost of electricity and fuel). — Increased cost of raw materials from upstream suppliers passing through increased costs from Scope 3 emissions. — Reduction in sales from passing the costs from carbon taxes on to consumers. — Under a Paris Ambition (1.5°C) scenario global carbon prices are expected to grow in the medium term. Failure to achieve our SBTi-aligned target for Scope 1 and 2 emissions can lead to a medium risk. However, if we meet our SBTi target, the risk is significantly reduced as we aim to achieve at least 95% absolute Scope 1 and 2 emissions reduction by 2030 (vs a 2020 baseline). — Indirect Scope 3 emissions account for the majority of our exposure to carbon costs, particularly upstream emissions associated with farming and processing, which could be passed on by our suppliers.

### What the price says

The price assumes cash profits grow 8.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate 0.10720717699222937. Price 374.8; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2022-07: GBX 291.80 per share

- 2022-08: GBX 258.85 per share

- 2022-09: GBX 279.25 per share

- 2022-10: GBX 268.00 per share

- 2022-11: GBX 284.10 per share

- 2022-12: GBX 327.35 per share

- 2023-01: GBX 324.25 per share

- 2023-02: GBX 321.95 per share

- 2023-03: GBX 322.00 per share

- 2023-04: GBX 351.00 per share

- 2023-05: GBX 318.20 per share

- 2023-06: GBX 322.25 per share

- 2023-07: GBX 336.30 per share

- 2023-08: GBX 322.50 per share

- 2023-09: GBX 340.85 per share

- 2023-10: GBX 329.50 per share

- 2023-11: GBX 330.05 per share

- 2023-12: GBX 321.65 per share

- 2024-01: GBX 321.50 per share

- 2024-02: GBX 331.45 per share

- 2024-03: GBX 333.10 per share

- 2024-04: GBX 339.50 per share

- 2024-05: GBX 325.10 per share

- 2024-06: GBX 322.60 per share

- 2024-07: GBX 349.60 per share

- 2024-08: GBX 382.00 per share

- 2024-09: GBX 392.90 per share

- 2024-10: GBX 372.40 per share

- 2024-11: GBX 374.30 per share

- 2024-12: GBX 377.40 per share

- 2025-01: GBX 374.70 per share

- 2025-02: GBX 398.40 per share

- 2025-03: GBX 391.30 per share

- 2025-04: GBX 376.40 per share

- 2025-05: GBX 413.90 per share

- 2025-06: GBX 374.40 per share

- 2025-07: GBX 359.50 per share

- 2025-08: GBX 362.90 per share

- 2025-09: GBX 332.40 per share

- 2025-10: GBX 354.10 per share

- 2025-11: GBX 370.90 per share

- 2025-12: GBX 374.80 per share

- 2026-01: GBX 378.90 per share

- 2026-02: GBX 405.70 per share

- 2026-03: GBX 373.80 per share

- 2026-04: GBX 340.00 per share

- 2026-05: GBX 336.70 per share

- 2026-06: GBX 347.70 per share

- 2026-07: GBX 363.30 per share

- 2026-08: GBX 368.20 per share

- 2026-09: GBX 337.60 per share

- 2026-10: GBX 355.10 per share

## Annual estimated value (GBX per share)

- FY2023: low GBX 135.29 per share, central GBX 152.73 per share, high GBX 175.93 per share

- FY2024: low GBX 172.43 per share, central GBX 193.24 per share, high GBX 220.96 per share

- FY2025: low GBX 182.25 per share, central GBX 205.68 per share, high GBX 236.88 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

Prior published observations retained from 2026-10-15T06:39:49.640Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300PSB3WWEODCUP19/2025-12-31/ESEF/GB/0/549300PSB3WWEODCUP19-2025-12-31/reports/549300PSB3WWEODCUP19-2025-12-31-T01.html); period 2025-12-31, filed 2026-03-18.

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.

## Reported holder observations

- [David Hoeft](https://gigainvestors.com/DAC): 149,934,507 HLN shares; USD 1,398,889,000 reported position value; 0.73% of portfolio; add; quarter 2026 Q2.
- [Matthew McLennan](https://gigainvestors.com/FE): 4,224,856 HLN shares; USD 39,418,000 reported position value; 0.07% of portfolio; add; quarter 2026 Q2.
- [Bill Nygren](https://gigainvestors.com/HA): 16,833,252 HLN shares; USD 157,055,000 reported position value; 0.21% of portfolio; add; quarter 2026 Q2.
- [Thomas Graham Kahn](https://gigainvestors.com/KB): 58,341 HLN shares; USD 544,000 reported position value; 0.09% of portfolio; add; quarter 2026 Q2.
- [William Browne](https://gigainvestors.com/TB): 72,035 HLN shares; USD 672,000 reported position value; 0.05% of portfolio; reduce; quarter 2026 Q2.