Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


HALOZYME THERAPEUTICS INC

Nasdaq / Health Care / Biotechnology

Fundamental Rating

7

HALO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 586 industry peers in the Biotechnology industry. HALO gets an excellent profitability rating and is at the same time showing great financial health properties. HALO is evaluated to be cheap and growing strongly. This does not happen too often! This makes HALO very considerable for value and growth and quality investing!



7

1. Profitability

1.1 Basic Checks

HALO had positive earnings in the past year.
In the past year HALO had a positive cash flow from operations.
HALO had positive earnings in 4 of the past 5 years.
HALO had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 17.31%, HALO belongs to the top of the industry, outperforming 98.80% of the companies in the same industry.
With an excellent Return On Equity value of 179.30%, HALO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HALO has a better Return On Invested Capital (18.09%) than 98.46% of its industry peers.
HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 14.94%.
The 3 year average ROIC (17.78%) for HALO is below the current ROIC(18.09%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 17.31%
ROE 179.3%
ROIC 18.09%
ROA(3y)21.23%
ROA(5y)14.64%
ROE(3y)219.81%
ROE(5y)133.26%
ROIC(3y)17.78%
ROIC(5y)N/A

1.3 Margins

HALO has a better Profit Margin (36.95%) than 98.97% of its industry peers.
In the last couple of years the Profit Margin of HALO has declined.
HALO's Operating Margin of 44.25% is amongst the best of the industry. HALO outperforms 99.49% of its industry peers.
In the last couple of years the Operating Margin of HALO has declined.
With an excellent Gross Margin value of 78.51%, HALO belongs to the best of the industry, outperforming 87.14% of the companies in the same industry.
HALO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 44.25%
PM (TTM) 36.95%
GM 78.51%
OM growth 3Y-8.72%
OM growth 5YN/A
PM growth 3Y-11.05%
PM growth 5YN/A
GM growth 3Y-2.86%
GM growth 5Y-3.81%

More info and screens

7

2. Health

2.1 Basic Checks

HALO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HALO has less shares outstanding
HALO has less shares outstanding than it did 5 years ago.
HALO has a worse debt/assets ratio than last year.

2.2 Solvency

HALO has an Altman-Z score of 3.81. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.81, HALO is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
The Debt to FCF ratio of HALO is 3.54, which is a good value as it means it would take HALO, 3.54 years of fcf income to pay off all of its debts.
HALO has a better Debt to FCF ratio (3.54) than 95.88% of its industry peers.
HALO has a Debt/Equity ratio of 8.44. This is a high value indicating a heavy dependency on external financing.
HALO's Debt to Equity ratio of 8.44 is on the low side compared to the rest of the industry. HALO is outperformed by 85.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 8.44
Debt/FCF 3.54
Altman-Z 3.81
ROIC/WACC2.48
WACC7.29%

2.3 Liquidity

A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
With a decent Current ratio value of 6.64, HALO is doing good in the industry, outperforming 63.98% of the companies in the same industry.
A Quick Ratio of 5.36 indicates that HALO has no problem at all paying its short term obligations.
HALO's Quick ratio of 5.36 is in line compared to the rest of the industry. HALO outperforms 54.89% of its industry peers.
Industry RankSector Rank
Current Ratio 6.64
Quick Ratio 5.36

More info and screens

9

3. Growth

3.1 Past

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.64%, which is quite impressive.
The Earnings Per Share has been growing by 45.64% on average over the past years. This is a very strong growth
The Revenue has grown by 22.40% in the past year. This is a very strong growth!
The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)39.64%
EPS 3Y45.64%
EPS 5YN/A
EPS growth Q2Q68.09%
Revenue 1Y (TTM)22.4%
Revenue growth 3Y45.79%
Revenue growth 5Y40.42%
Revenue growth Q2Q20.81%

3.2 Future

Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 22.93% on average per year.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.80% yearly.
EPS Next Y35.27%
EPS Next 2Y29.38%
EPS Next 3Y30.48%
EPS Next 5Y22.93%
Revenue Next Year14.89%
Revenue Next 2Y14.25%
Revenue Next 3Y16.45%
Revenue Next 5Y13.8%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

More info and screens

9

4. Valuation

4.1 Price/Earnings Ratio

HALO is valuated correctly with a Price/Earnings ratio of 14.42.
Based on the Price/Earnings ratio, HALO is valued cheaper than 97.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (28.60), we can say HALO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 9.61, the valuation of HALO can be described as reasonable.
Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (20.15), we can say HALO is valued rather cheaply.
Industry RankSector Rank
PE 14.42
Fwd PE 9.61

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.91% of the companies in the same industry.
HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 98.80% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.41
EV/EBITDA 13.76

4.3 Compensation for Growth

HALO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HALO may justify a higher PE ratio.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 30.48% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y29.38%
EPS Next 3Y30.48%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for HALO!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens