For those who appreciate value investing, NASDAQ:HALO is a compelling option with its solid fundamentals.

Last update: Oct 24, 2023

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) has caught the attention of our stock screener as a great value stock. NASDAQ:HALO excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Evaluating Valuation: NASDAQ:HALO

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:HALO was assigned a score of 9 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.91, HALO is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.21, which indicates a very decent valuation of HALO.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 98.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (18.49), we can say HALO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 95.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.34% of the companies listed in the same industry.
The 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.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 25.48% in the coming years.

Exploring NASDAQ:HALO's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:HALO was assigned a score of 8 for profitability:

HALO has a Return On Assets of 12.91%. This is amongst the best in the industry. HALO outperforms 97.51% of its industry peers.
HALO has a better Return On Equity (154.74%) than 99.67% of its industry peers.
The Return On Invested Capital of HALO (14.76%) is better than 98.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is significantly above the industry average of 12.00%.
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 better Profit Margin (30.21%) than 97.67% 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 98.50% of its industry peers.
In the last couple of years the Operating Margin of HALO has grown nicely.
The Gross Margin of HALO (77.42%) is better than 85.55% of its industry peers.

Understanding NASDAQ:HALO's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has achieved a 7 out of 10:

HALO has an Altman-Z score of 3.19. 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 3.19, HALO is in the better half of the industry, outperforming 77.74% of the companies in the same industry.
HALO's Debt to FCF ratio of 5.11 is amongst the best of the industry. HALO outperforms 95.18% 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.
A Quick Ratio of 5.44 indicates that HALO has no problem at all paying its short term obligations.

Growth Assessment of NASDAQ:HALO

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HALO has received a 8 out of 10:

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.
The Earnings Per Share has been growing by 42.34% on average over the past years. This is a very strong growth
HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.71%.
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.
Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.80% on average per year.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.14% yearly.

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

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.