NASDAQ:HALO is showing decent growth, but is still valued reasonably.

Last update: Oct 12, 2023

Our stock screener has spotted HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as a growth stock which is not overvalued. NASDAQ:HALO is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Growth looks like for NASDAQ:HALO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HALO has earned a 8 for growth:

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.
Measured over the past years, HALO shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.34% on average per year.
Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 58.71%.
The Revenue has been growing by 15.83% on average over the past years. This is quite good.
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.

Deciphering NASDAQ:HALO's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:HALO has received a 8 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (26.04), we can say HALO is valued slightly cheaper.
The Price/Forward Earnings ratio is 9.89, which indicates a very decent valuation of HALO.
98.84% of the companies in the same industry are more expensive than HALO, based on the Price/Forward Earnings ratio.
HALO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.05.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 95.87% of the companies are valued more expensively.
97.36% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent 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 25.48% in the coming years.

Health Analysis for NASDAQ:HALO

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 7 out of 10:

HALO has an Altman-Z score of 3.31. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.31, HALO is doing good in the industry, outperforming 76.20% of the companies in the same industry.
HALO has a better Debt to FCF ratio (5.11) than 95.04% of its industry peers.
HALO has a Current Ratio of 6.58. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a Quick Ratio of 5.44. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NASDAQ:HALO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 8 out of 10:

HALO has a better Return On Assets (12.91%) than 97.52% of its industry peers.
HALO has a better Return On Equity (154.74%) than 99.67% of its industry peers.
With an excellent Return On Invested Capital value of 14.76%, HALO belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
HALO had an Average Return On Invested Capital over the past 3 years of 36.79%. This is significantly above the industry average of 11.71%.
The 3 year average ROIC (36.79%) for HALO is well above the current ROIC(14.76%). The reason for the recent decline needs to be investigated.
HALO has a Profit Margin of 30.21%. This is amongst the best in the industry. HALO outperforms 97.69% of its industry peers.
In the last couple of years the Profit Margin of HALO has grown nicely.
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.
HALO's Gross Margin of 77.42% is amongst the best of the industry. HALO outperforms 85.79% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of HALO for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.