Haleon (LON:HLN) Is Experiencing Growth In Returns On Capital
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 10 2025
0mins
Source: Yahoo Finance
Haleon's Financial Performance: Haleon has a return on capital employed (ROCE) of 9.0%, which is below the industry average of 20%. However, its ROCE has increased by 47% over the past four years while keeping capital employed relatively flat, indicating improved efficiency in generating returns.
Investment Potential and Caution: Despite promising trends and a 16% return for shareholders over the last year, there are concerns about potential limitations for future organic growth due to stagnant capital employed. Additionally, there is one warning sign regarding Haleon's financial health that investors should consider.
Analyst Views on HLN
Wall Street analysts forecast HLN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HLN is 13.44 USD with a low forecast of 13.44 USD and a high forecast of 13.44 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 10.330
Low
13.44
Averages
13.44
High
13.44
Current: 10.330
Low
13.44
Averages
13.44
High
13.44
About HLN
Haleon plc is a consumer healthcare company. The Company’s product portfolio spans six major categories, including oral health, vitamins, minerals and supplements (VMS), pain relief, respiratory health, digestive health and therapeutic skin health and other. The Company’s geographical segments include North America, Europe, Middle East, Africa, and Latin America (EMEA) & LatAm, and Asia Pacific (APAC). Its respiratory health brands offer product solutions for a range of respiratory issues, including cold and flu, nasal congestion, coughs, and allergies. The Company’s oral health brands include Sensodyne, Polident, and Parodontax. Its VMS brands include Centrum, Emergen-C, and Caltrate. Its respiratory brands include Otrivin, Theraflu, Flonase, Contac, and Beechams. Its pain relief brands include Voltaren, Panadol, and Advil. Its digestive health brands include TUMS, ENO, and Benefiber. Its therapeutic skin health brands include Fenistil, Zovirax, and Bactroban.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
