HALMA PLC ANNUAL REPORT FREE

impairments and write-offs of goodwill, intangibles and other assets, especially if recurring (not observed with Halma).I did not only deduct capital expenditures from operating cash flow (OCF) but also took into consideration the following non-cash items:

HALMA PLC ANNUAL REPORT FREE

In addition to operating profit, I reviewed the respective company’s free cash flow (FCF) and its sustainability. Own work, based on Halma's 2015 - 2021 annual reports Nevertheless, the growth-related discrepancy between gross and operating margin is likely to remain negligible for the foreseeable future due to the still small size of the company. While revenues grew at a compound annual growth rate (CAGR) of 10.5% since fiscal 2015, operating earnings grew at a CAGR of 9.9%, suggesting that the company could potentially face difficulties in translating growth to earnings as revenues increase. Over the course of the last six years, the company’s already respectable gross margin expanded even further (see below), suggesting that Halma is well-positioned and exerts strong pricing power on its customers. The aforementioned segment-specific operating margins of typically over 20% already suggest that Halma is a highly profitable company. In this article, I want to share why I believe that the company indeed deserves a premium valuation, while I do not believe the stock is a buy at its current price of £23 (about $71 per ADR). Halma shares never seem to be on sale, but the recent sell-off from £32 to £23 (i.e. Its common shares are available to U.S.-based investors through OTC exchanges (ticker OTCPK:HLMAF) or via 2:1 ADRs (ticker OTCPK:HALMY). Halma plc is listed on the London Stock Exchange under the ticker HLMA. Morningstar, based on its quantitative rating system, has assigned a 'wide moat rating' to the company. The other three segments are of similar size and are almost equally profitable at 2021 operating margins of 25% (Infrastructure Safety), 25% (Environmental Analysis) and 23% (Medical). Process Safety is the smallest segment in terms of revenues (see below) and exhibits the weakest operating margin (< 20% in fiscal 2021). Halma has four reporting segments, namely Process Safety (e.g., gas detection and access control), Infrastructure Safety (e.g., fire detection & suppression and security sensors), Environmental Analysis (e.g., water analysis & treatment and environmental monitoring) and Medical (e.g., healthcare assessment and therapeutic solutions. Own work, based on Halma's 2021 annual report It serves customers throughout the world and generated £1.3 billion in revenues in fiscal 2021 (ending in March 2021): The company grows organically but more importantly, is significantly engaged in M&A, as emphasized by the large number of companies its owns (> 50). that is mainly engaged in the manufacturing of safety-related products. Halma plc ( OTCPK:HLMAF, OTCPK:HALMY) is a lesser-known industrial holding company from the U.K. RomoloTavani/iStock via Getty Images Company Overview

Halma plc annual report