While growth is established for NASDAQ:HALO, the stock's valuation remains reasonable.

Last update: Sep 26, 2023

Uncover the potential of HALOZYME THERAPEUTICS INC (NASDAQ:HALO), a growth stock that our stock screener found to be reasonably priced. NASDAQ:HALO is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

How We Gauge Growth for NASDAQ:HALO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:HALO, the assigned 8 reflects its growth potential:

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.91%, which is quite impressive.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.34% yearly.
The Revenue has grown by 58.71% in the past year. This is a very strong growth!
Measured over the past years, HALO shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.83% yearly.
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 17.98% on average per year.

Valuation Analysis for NASDAQ:HALO

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:HALO scores a 8 out of 10:

96.69% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.92. HALO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.30 indicates a reasonable valuation of HALO.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 98.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.00. HALO is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 95.53% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.19% of the companies listed in the same industry.
HALO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HALO has an outstanding profitability rating, which may justify a higher PE ratio.
HALO's earnings are expected to grow with 25.48% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:HALO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has received a 7 out of 10:

An Altman-Z score of 3.38 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO has a better Altman-Z score (3.38) than 76.66% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 5.11, HALO belongs to the top of the industry, outperforming 95.03% of the companies in the same industry.
A Current Ratio of 6.58 indicates that HALO has no problem at all paying its short term obligations.
A Quick Ratio of 5.44 indicates that HALO has no problem at all paying its short term obligations.

What does the Profitability looks like for NASDAQ:HALO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HALO has achieved a 8:

HALO has a better Return On Assets (12.91%) than 97.52% of its industry peers.
With an excellent Return On Equity value of 154.74%, HALO belongs to the best of the industry, outperforming 99.67% of the companies in the same industry.
HALO has a Return On Invested Capital of 14.76%. This is amongst the best in the industry. HALO outperforms 98.18% of its industry peers.
HALO had an Average Return On Invested Capital over the past 3 years of 36.79%. This is significantly above the industry average of 12.00%.
The last Return On Invested Capital (14.76%) for HALO is well below the 3 year average (36.79%), which needs to be investigated, but indicates that HALO had better years and this may not be a problem.
Looking at the Profit Margin, with a value of 30.21%, HALO belongs to the top of the industry, outperforming 97.52% of the companies in the same industry.
HALO's Profit Margin has improved in the last couple of years.
HALO has a Operating Margin of 39.79%. This is amongst the best in the industry. HALO outperforms 98.51% of its industry peers.
In the last couple of years the Operating Margin of HALO has grown nicely.
With an excellent Gross Margin value of 77.42%, HALO belongs to the best of the industry, outperforming 85.60% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of HALO

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.