Opinions
David Driscoll
Halma plc
HLMA-LN
TOP PICK
Nov 14, 2016
Stock price when the opinion was issued
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This is in the industrial/commercial sector. Grows about 10% a year. They make smoke alarms and smoke detectors, and on the medical side they do blood pressure equipment. A little British company that has been growing at about 10% a year, and the dividend has been growing in the 7%-10% range. They are running such a tight ship, that Operating Margins and the ROIC are much higher than the weighted average cost of capital.
(A Past Pick Nov 14/16. Up 25%.) A safety company that does sensors and other technologies for measurement, such as detecting smoke detectors and carbon monoxide. They also do analysis on the environmental side as well. Just made an acquisition of Minicam Enterprises, which is supposed to fit in well with their water technologies.
Chart shows nice stair steps over time. Fire safety, wastewater detection, healthcare (focused on cataract lenses). Serial acquirer, owning over 50 companies across those 3 segments. Exceptional job buying small companies at attractive valuations and growing them over time. High quality name, and gives Canadians a very different exposure from the usual same old, same old, with good protection from US tariffs.
Since 2021, revenue's grown by 51%, profits by 42%, and ROIC steadily by ~14.5% per year. (Price target is in British pounds sterling.) Yield is 0.8%.
(Also available on the OTC market.)
A little British company that does protection services. It does CO2 emissions testing, fire alarms, smoke detectors, etc. Their future is really protection and safety, which is a big theme moving forward, because of government regulations, and the need to offset litigation. This is mostly with new builds, non-discretionary income. From a free cash flow standpoint, this has been growing at roughly 10%-15% a year. Dividend yield of 1.3%. (Analysts’ price target is GBP 1077.33.)