Despite its growth, NASDAQ:HALO remains within the realm of affordability.

Last update: Nov 2, 2023

Discover HALOZYME THERAPEUTICS INC (NASDAQ:HALO), an undervalued growth gem identified by our stock screener. NASDAQ:HALO is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Deciphering NASDAQ:HALO's Growth Rating

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:

The Earnings Per Share has grown by an impressive 25.91% over the past year.
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!
HALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.80% yearly.
The Revenue is expected to grow by 18.14% on average over the next years. This is quite good.

Assessing Valuation for NASDAQ:HALO

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 9 out of 10:

97.16% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.
HALO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
The Price/Forward Earnings ratio is 8.88, which indicates a very decent valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.83% of the companies in the same industry.
HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.26.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 95.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 97.66% of the companies are valued more expensively.
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.
HALO's earnings are expected to grow with 25.48% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 7 out of 10:

An Altman-Z score of 3.14 indicates that HALO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, HALO is doing good in the industry, outperforming 77.46% of the companies in the same industry.
Looking at the Debt to FCF ratio, with a value of 5.11, HALO belongs to the top of the industry, outperforming 95.16% 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.

Profitability Insights: NASDAQ:HALO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 8 out of 10:

With an excellent Return On Assets value of 12.91%, HALO belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
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 better Return On Invested Capital (14.76%) than 98.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HALO is significantly above the industry average of 12.13%.
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 97.66% of the companies in the same industry.
HALO's Profit Margin has improved in the last couple of years.
The Operating Margin of HALO (39.79%) is better than 98.50% 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 85.64% of its industry peers.

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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.