What it is: A consumer-brand business, where the durable asset is the brand and the pricing power it commands.
What moves the needle: Gross margin has run about 61% and operating margin about 17% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. That margin has stayed fairly steady relative to where it runs (16%–22% over the years), so unit growth and cost discipline, not a moving line, are the lever. The cash cycle has run negative through the cycle (a median of −131 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 6%, above 15% in 0 of 6 years). By owner earnings: roughly 17% of revenue reaches owners as cash, consistently, and customers and suppliers fund the business through negative working capital. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 20-F →

Revenue spreads across 3 segments, the largest EMEA & LatAm at 42%.

Revenue by reportable segment, FY2025

EMEA & LatAm42%£4.6B
North America35%£3.9B
Asia Pacific23%£2.6B

From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2020–2025

realized figures from each filing · older years to the left

2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
							Income statement
£9.9B	£9.5B	£10.9B	£11.3B	£11.2B	£11.0B	£11.0B	RevenueRevenue
60%	62%	61%	60%	61%	64%	64%	Gross marginGross mgn
£1.6B	£1.6B	£1.8B	£2.0B	£2.2B	£2.4B	£2.4B	Operating incomeOp. inc.
16.2%	17.2%	16.8%	17.7%	19.6%	21.9%	21.9%	Operating marginOp. mgn
£1.1B	£1.4B	£1.1B	£1.0B	£1.4B	£1.7B	£1.7B	Net incomeNet inc.
26%	12%	32%	33%	23%	22%	22%	Effective tax rateTax rate
							Cash flow & returns
£1.4B	£1.4B	£2.1B	£2.1B	£2.3B	£2.6B	£2.6B	Operating cash flowOp. cash
£215M	£174M	£180M	£309M	£324M	£360M	£360M	DepreciationDeprec.
£47M	(£208M)	£823M	£742M	£535M	£607M	£607M	Working capital & otherWC & other
£222M	£228M	£304M	£234M	£250M	£322M	£322M	CapexCapex
2.2%	2.4%	2.8%	2.1%	2.2%	2.9%	2.9%	Capex / revenueCapex/rev
£1.2B	£1.2B	£1.9B	£1.9B	£2.1B	£2.3B	£2.3B	Owner earningsOwner earn.
12.0%	12.4%	17.3%	16.5%	18.3%	21.0%	21.0%	Owner earnings marginOE mgn
£1.2B	£1.1B	£1.8B	£1.9B	£2.1B	£2.3B	£2.3B	Free cash flowFCF
12.0%	11.8%	16.2%	16.5%	18.3%	21.0%	21.0%	Free cash flow marginFCF mgn
£2.4B	£1.1B	£2.7B	£388M	£570M	£612M	£612M	Dividends paidDiv. paid
5%	6%	5%	5%	8%	8%	8%	ROICROIC
4%	5%	6%	6%	9%	10%	10%	Return on equityROE
−5%	1%	−10%	4%	5%	6%	6%	Retained to equityRetained/eq
							Balance sheet
£333M	£414M	£684M	£1.0B	£2.3B	£1.3B	£1.3B	Cash & investmentsCash+inv
—	£2.2B	£1.9B	£1.9B	£2.1B	£2.1B	£2.1B	ReceivablesReceiv.
—	£951M	£1.3B	£1.4B	£1.2B	£1.0B	£1.0B	InventoryInvent.
—	£3.0B	£3.6B	£3.5B	£3.7B	£3.7B	£3.7B	Accounts payablePayables
—	£156M	(£392M)	(£262M)	(£460M)	(£647M)	(£647M)	Operating working capitalOper. WC
—	£5.3B	£4.1B	£4.8B	£5.7B	£4.5B	£4.5B	Current assetsCur. assets
—	£4.2B	£4.4B	£4.6B	£5.8B	£4.9B	£4.9B	Current liabilitiesCur. liab.
—	1.2×	0.9×	1.0×	1.0×	0.9×	0.9×	Current ratioCurr. ratio
—	£8.2B	£8.4B	£8.3B	£8.2B	£8.1B	£8.1B	GoodwillGoodwill
—	£34.5B	£34.8B	£34.1B	£34.3B	£32.6B	£32.6B	Total assetsAssets
—	£87M	£10.0B	£8.8B	£8.6B	£7.8B	£7.8B	Total debtDebt
—	(£327M)	£9.3B	£7.8B	£6.4B	£6.4B	£6.4B	Net debt / (cash)Net debt
59.2×	86.2×	7.1×	5.0×	5.7×	7.1×	7.1×	Interest coverageInt. cov.
£26.2B	£26.4B	£16.3B	£16.6B	£16.2B	£16.4B	£16.4B	Shareholders’ equityEquity
							Per share
9.23B	9.23B	9.23B	9.23B	9.13B	8.98B	8.95B	Shares out (diluted)Shares
£1.07	£1.03	£1.18	£1.22	£1.23	£1.23	£1.23	Revenue / shareRev/sh
£0.12	£0.15	£0.11	£0.11	£0.16	£0.19	£0.19	EPS (diluted)EPS
£0.13	£0.13	£0.20	£0.20	£0.22	£0.26	£0.26	Owner earnings / shareOE/sh
£0.13	£0.12	£0.19	£0.20	£0.22	£0.26	£0.26	Free cash flow / shareFCF/sh
£0.26	£0.12	£0.29	£0.04	£0.06	£0.07	£0.07	Dividends / shareDiv/sh
£0.02	£0.02	£0.03	£0.03	£0.03	£0.04	£0.04	Cap. spending / shareCapex/sh
£2.84	£2.85	£1.77	£1.80	£1.77	£1.83	£1.83	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	5-yr	5-yr
Revenue / share	+2.8%/yr	+2.8%/yr
Owner earnings / share	+14.9%/yr	+14.9%/yr
EPS	+8.4%/yr	+8.4%/yr
Dividends / share	−23.3%/yr	−23.3%/yr
Capital spending / share	+8.3%/yr	+8.3%/yr
Book value / share	−8.4%/yr	−8.4%/yr

The record, charted

FY2020–2025

Each measure over its full record; the current point and the worst year marked.

Share count

9Bpeak FY2022

ROIC

8%low FY2020

Gross margin

64%low FY2023

Net debt ÷ owner earnings

2.8×peak FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

£2.3Bowner earningsvs.£1.7Bnet incomelow FY2021

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2020FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned £1.7B of profit into £2.3B of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income£1.7B

Owner earnings£2.3B · 21% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	£1.7B	£1.4B	£1.0B	£1.1B	£1.4B
Depreciation & amortizationnon-cash charge added back	+£360M	+£324M	+£309M	+£180M	+£174M
Working capital & othertiming of cash in and out, other non-cash items	+£607M	+£535M	+£742M	+£823M	−£208M
Cash from operations	£2.6B	£2.3B	£2.1B	£2.1B	£1.4B
Maintenance capital expenditurethe spending needed just to hold position and volume	−£322M	−£250M	−£234M	−£180M	−£174M
Owner earnings	£2.3B	£2.1B	£1.9B	£1.9B	£1.2B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−£124M	−£54M
Free cash flow	£2.3B	£2.1B	£1.9B	£1.8B	£1.1B
Owner-earnings marginowner earnings ÷ revenue	21%	18%	17%	17%	12%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 7.1×

Comfortable

Operating income £2.4B ÷ interest expense £340M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? £6.4B · 2.7× operating profit

Meaningful net debt

Cash £1.3B − debt £7.8B

What this means
Netting £1.3B of cash and short-term investments against £7.8B of debt leaves £6.4B owed, about 2.7× a year's operating profit (3.2× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? -182d

Negative, funded by others

DSO 68 + DIO 95 − DPO 345 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.

Is it a good business?

Return on invested capital 5%

Below average through the cycle

6-yr median, range 5%–8%; 8% latest = NOPAT £1.9B ÷ invested capital £22.9B

Industry peers: median 15%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran 8% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 17%

High through the cycle

6-yr median margin, range 12%–21%; latest £2.3B = operating cash £2.6B − maintenance capex £322M

Industry peers: median 12%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 21% of revenue this year, a 17% median across 6 years.
Are earnings backed by cash? 1.58×

Cash-backed

Cash from ops £2.6B ÷ net income £1.7B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 26%

Reinvests most of it

Dividends + buybacks £612M ÷ Owner Earnings £2.3B

What this means
Of £2.3B Owner Earnings, £612M (26%) went back to shareholders, £612M dividends, £0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.89×

Maintaining

Capex £322M ÷ depreciation £360M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size —

Revenue ≥ $2B (a dollar floor) · £11.0B

What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
Strong liquidity Miss

Current ratio ≥ 2× · 0.92×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · £7.8B vs (£383M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (6-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (6)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Near

Earnings +33% over the record · +16%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are £0.15/share (latest year £0.19), the averaged base the calculator's gate runs on, and book value is £1.83/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2020–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 6 of 6

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 0 of 5 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 17% → 20% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about 17% early to 20% lately, median 17% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +13%/yr

What this means
Owner earnings grew about 13% a year over the record.
Worst year 2020 · 16.2% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −0.6%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record paid

What this means
Paid a dividend in 6 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“In Q1, we implemented Eightfold AI, a leading candidate relationship management and recruiting workflow automation tool, which has measurably reduced cost and time-to-offer for both executive and non-executive recruitment.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets£4.5B

Cash & short-term investments£1.3B
Receivables£2.1B
Inventory£1.0B
Other current assets£143M

Current liabilities£4.9B

Accounts payable£3.7B
Other current liabilities£1.2B

Current ratio0.92×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.71×stricter: inventory excluded

Cash ratio0.27×strictest: cash alone against what's due

Working capital(£383M)the cushion left after near-term bills

Its current ratio is below 1, which usually reads as strain; here it is likely structural strength. This business collects from customers before it pays suppliers (a negative cash-conversion cycle), so the balance sheet is funded by that float, the way Costco's and Amazon's are. The low ratio can be the edge, not the risk; the cash-conversion cycle and the debt due above say which.

Deeper floors

Tangible book value£8.3Bequity stripped of goodwill & intangibles

Net current asset value(£11.6B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases£7.8Bno operating-lease liability tagged this quarter, so debt alone

From the company's latest filing.

How the cash was used, 2020–2025

Over the record, the business generated £11.9B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested£1.6B · 13%
Dividends£7.8B · 66%
Buybacks£38M · 0%
Retained (debt / cash)£2.5B · 21%

Returned to owners£7.8B
75% of the owner earnings the business produced over the span, £7.8B as dividends and £38M as buybacks.
Average price paid for buybacks—
Buybacks ran £38M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−3.1%
The diluted count fell from 9235M to 8952M, so the buybacks outran the stock issued to staff.
Dividend record£0.07/sh
Paid in 6 of the years on record, the per-share dividend shrinking about 23% a year. It was cut at least once along the way.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 6-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill£8.1B25% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity49%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring£0over 6 years buying other businesses, against £1.6B of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 6-year record, from the company's own filings.

Inverting the record

Invert: instead of why Haleon plc is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2020–2025.

None of the 3 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Personal Care Products

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CLColgate-Palmolive Co.	$20.4B	60%	21.9%	41%	17%
ECLEcolab Inc.	$16.1B	42%	14.1%	10%	12%
KVUEKenvue Inc.	$15.1B	57%	16.1%	9%	10%
ELEstee Lauder Companies Inc. (The)	$14.3B	76%	14.4%	19%	12%
HLNHaleon plc	£11.0B	61%	17.4%	6%	17%
CLXClorox Co.	$7.1B	44%	17.1%	32%	12%
CHDChurch & Dwight Company Inc.	$6.2B	45%	19.2%	15%	17%
COTYCoty Inc.	$5.9B	60%	-1.0%	-1%	4%
Group median	—	58%	16.6%	13%	12%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares, each representing two ordinary”; Haleon plc reports in GBP, so every figure in this tool is stated per ADS and translated at GBP 1 = $1.349 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in GBP.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Haleon plc has delivered.

Haleon plc’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Haleon plc earns about $2.5B on its 16.9% median owner-earnings margin. This year’s 21.0% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($2.5B) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+9%/yr

Owner-earnings growth · ’20→’25+14%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $3.1B on 4476M shares outstanding, per the 20-F cover, as of 2026-03-13; net debt $8.7B. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh HLN against another business →

Cite: Owner Scorecard, "Haleon plc (HLN), the owner's record," https://ownerscorecard.com/c/HLN, data as of 2026-07-09.

Manual order: ← HITI its page in the Manual HLP →

Industry order: ← HLF the Personal Care Products chapter IPAR →