Halma PLC
HLMA: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 3,952.00 | Ffthpw | Cgfssllh |
Initiating Coverage on Halma With a Narrow Moat and Exemplary Capital Allocation Rating
Business Strategy and Outlook
Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. We believe the group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.