Haleon Shares Are Trading Flat for the Year. Are They a Buy?

The Haleon Plc (LON: HLN) share price is trading flat for the year, leaving most investors wondering whether now is a good time to add the consumer healthcare stock to their portfolio. The short answer from most analysts is that Haleon stock is a buy due to the reasons outlined below. 

Analysts point to the company’s portfolio of everyday consumer health products such as Panadol, Sensodyne toothpaste and Otrivin, a nasal spray, as key reasons to buy Haleon stock. The company’s products are sold globally, sometimes under different names in specific regions. 

Other analysts have highlighted Haleon’s high free cash flow margin of 16% as a great reason to buy the stock. Other metrics cited by analysts include the 8.1% improvement in revenues reported by the company during Q3 2022, driven by favourable volumes and price increases. 

Haleon continued to perform well despite the high inflation environment given its pricing power, which saw it increase the prices of its products without losing out on sales. The company’s global footprint also plays a significant role in its success, as many of its products are well-recognised brands worldwide. 

Still, investors should note that many of its products may do well in certain countries where they are household names but may not be marketed in other countries where the demand is lower. For example, Haleon’s calcium tablets known as Caltrate are extremely popular in China due to the high calcium deficiency in the country but are not well known in other countries. 

However, Caltrate continues to generate significant revenues for Haleon, given China’s massive population. In addition, the country’s government encourages parents to give their children Caltrate to help with calcium deficiency; hence, the product’s high sales figures. 

Panadol and Sensodyne are global products, with Sensodyne being the second largest toothpaste brand after Colgate, while Panadol is globally renowned as an effective over-the-counter pain relief medication. 

Analysts believe that Haleon shares are an excellent buy, especially at current prices, and I support this view, given that the company’s prospects are promising. 

*This is not investment advice. 

The Haleon share price chart. 

The Haleon share price is trading almost flat for the year. Is now a good time to buy?