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Halma’s track record is too good to miss

The specialist equipment maker looks unfazed by economic pressures
December 15, 2022

“Past performance does not guarantee future results”. Even newbie investors will be familiar with this disclaimer, given its attachment to everything from index funds to cryptocurrencies. Occasionally, however, a company comes along that seems to defy this warning. FTSE 100 constituent Halma (HLMA) is one of them. 

Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
  • Record order book
  • Portfolio of essential products
  • Proven resilience
  • Big de-rating 
Bear points
  • Lumpy cash flow this year
  • Growth stock valuation 

Halma has an incredibly robust track record. Profits have risen for 19 years in a row, and have compounded at a rate of 11 per cent a year over the past decade. To top it off, the group reported its 43rd successive dividend rise this summer, and the average return on total invested capital has hovered around 15 per cent for more than 15 years. 

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