Published on 24 Dec 2023 on Simply Wall St. via Yahoo Finance

Investors in Halma (LON:HLMA) have seen respectable returns of 77% over the past five years

Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Halma plc (LON:HLMA) shareholders have enjoyed a 70% share price rise over the last half decade, well in excess of the market return of around 5.8% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 16% in the last year , including dividends .

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

See our latest analysis for Halma