One-glance verdict
Undervalued
$14.42 our estimate vs market $9.66
Wall Street consensus: $11.65 (-19.2% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
Haleon plc
HLN · NYQ · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$9.66
52-week range
$8.65 - $11.28
Market cap
$42.54B
Balance sheet
Watch
6.95x Adequate
Net debt $9.74B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 10.3% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Reward Trades at 19.7x P/E vs peer median 22.3x (11.4% cheaper).
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Haleon plc
Haleon is a healthcare company that sells many popular brands you'd find in a pharmacy, such as Advil for pain relief, Sensodyne toothpaste, and Centrum vitamins. Since people regularly buy these everyday health items regardless of how the economy is doing, Haleon can often count on steady and predictable sales. This consistency is important because it means the company's income may be more stable than businesses that sell non-essential products.
How the company got here
Haleon is a relatively new name for a company with a very long history, officially launching in 2022. It was formed by spinning off the consumer healthcare division of the major pharmaceutical company GSK. This division had already grown by combining GSK's consumer products with those from another pharmaceutical giant, Pfizer, in 2019. This move created one of the world's largest standalone consumer health companies, bringing together many well-known drugstore brands under one roof.
What it actually does
Haleon makes and sells a wide variety of health and wellness products that you can buy without a prescription, often called over-the-counter (OTC) products. You would recognize its brands from the shelves of most pharmacies and supermarkets. These include popular items like Sensodyne toothpaste, Advil and Panadol painkillers, Centrum vitamins, and Theraflu cold and flu remedies. The company focuses entirely on this area of everyday health, from brushing your teeth to managing a headache or taking a daily multivitamin.
Oral Health
This is one of Haleon's most important and largest businesses, making up a significant portion of its sales. It sells products for taking care of your teeth, gums, and mouth. The key brands that people buy are Sensodyne for sensitive teeth, Parodontax for gum health, and Polident for denture care. This segment is successful because these are products people use daily and often trust recommendations from their dentists.
Pain Relief
This division sells well-known medicines to help people manage everyday aches and pains. Its biggest brands are Advil, Panadol, and Voltaren, which are popular in different parts of the world for relieving things like headaches, muscle soreness, and arthritis pain. This is a major part of Haleon's business, offering both pills you swallow and topical creams you rub on your skin. Customers are typically individuals looking for quick and reliable relief from common pains.
Vitamins, Minerals & Supplements
This part of the company focuses on products that help people supplement their diets and support their overall wellness. The most recognizable brands here are Centrum, a popular multivitamin, and Emergen-C for immune support. Consumers buy these products to proactively manage their health. This is a key business for Haleon, tapping into the growing global trend of people focusing more on health and wellness.
Respiratory Health
This segment provides remedies for colds, flu, coughs, and allergies. When you have a stuffy nose or a cough, you might buy one of their products like Theraflu, Otrivin nasal spray, or Robitussin cough syrup. Sales in this area can be seasonal, often increasing during the colder months when sickness is more common. This business is a substantial contributor to Haleon's overall revenue.
Digestive Health and Other
This business line covers products for stomach and digestive issues, with Tums and ENO being the most famous brands for treating heartburn and indigestion. It also includes a variety of other smaller product lines, such as therapeutic skin health. While not as large as some of its other segments, it provides essential, everyday remedies for common health complaints.
What management is betting on now
Management's current plan, called the "Win as One" strategy, focuses on growing the business by getting its top products into the hands of more people worldwide. They are concentrating their investment on their most popular and trusted "power brands," like Sensodyne and Advil, to make them even stronger. The company is also working to become more efficient by improving its supply chain (the process of making and shipping products) to increase its profit margins (the amount of money it keeps from each sale). A key goal is to expand in growing markets and use data and technology to better understand what customers need.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $14.42 vs current price $9.66
Wall Street consensus is the average analyst price target: $11.65 (-19.2% lower than our fair-value estimate).
Our most-likely fair value is $14.42 a share — about 49.2% above today's price of $9.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $9.7B. Interest coverage 7.0x.
Net debt
$9.74B
Interest coverage
6.95x
Haleon plc's profit covers its interest bill about 7.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HLN
BASELINE
Haleon plc
Total debt $11.54B Interest coverage 6.95x This is the baseline the peer rows are being compared against.
Total debt $8.80B Interest coverage 6.31x -9% vs HLN Has roughly the same debt cushion as HLN.
Total debt $11.40B Interest coverage 8.10x +17% vs HLN Carries about 1.2x more debt cushion than HLN.
Total debt $7.11B Interest coverage 9.18x +32% vs HLN Carries about 1.3x more debt cushion than HLN.
Total debt $44.45B Interest coverage 2.71x -61% vs HLN Carries about 2.6x less debt cushion than HLN.
Total debt $7.97B Interest coverage 15.85x +128% vs HLN Carries about 2.3x more debt cushion than HLN.
What you should know
The case for and against HLN
3 Rewards
1 Risk
Rewards
-
Returns 10.3% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 19.7x P/E vs peer median 22.3x (11.4% cheaper).
Risks
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.71x
Forward P/E
15.89x
P/B
1.96x
P/S
3.86x
EV/EBITDA
18.62x
PEG ratio
2.62x
Profitability
How much profit each dollar creates
Gross margin
64.8%
Operating margin
23.2%
Net margin
15.1%
ROE
10.3%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
0.92x
Quick ratio
0.68x
Total debt
$11.54B
Total cash
$1.80B
Growth
How the business has been compounding
Revenue TTM
$14.74B
Revenue 5Y CAGR
0.5%
EPS TTM
0.49
EPS 5Y CAGR
17.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.52B
Free CF TTM
$2.97B
FCF margin
20.1%
Dividend
Shareholder payout
Yield
2.0%
Payout ratio
37.1%
Last ex-div date
2026-04-10