赫力昂

Haleon PLC earns a 5-star quantitative star rating, illustrating our stance that this share class offers a compelling opportunity for investors. The stock currently trades at a 10% discount to our quantitative fair value estimate of $10.38 per share, which is reinforced by this estimate's low uncertainty rating.

The firm's profitability bolsters our fair value estimate. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. For example, the firm's earnings yield of 6.1% lies in the top 40% compared with global peers. This suggests that it is generating substantial earnings relative to its share price, which contributes to our view that shares are cheap.

Conversely, the firm's balance sheet is potentially concerning. Excessive leverage heightens financial risk, potentially undermining a firm's value. The firm's EBITDA/interest coverage ratio of 8.5, a core component of leverage, sits in the bottom 40% globally. This gives us pause, as it can be a warning sign of financial distress if conditions don't improve. Despite our favorable price/fair value ratio, this characteristic is a negative attribute.

The company's excess returns on capital and superb profitability, which could persist for decades or more, warrant a wide economic moat rating. This is supported by the company's strong financial health score, which indicates a low likelihood that the company will tumble into financial distress.