NASDAQ:HALO is showing good growth, while it is not too expensive.

Last update: Nov 27, 2023

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) was identified as an affordable growth stock by our stock screener. NASDAQ:HALO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Examination for NASDAQ:HALO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:HALO was assigned a score of 8 for growth:

The Earnings Per Share has grown by an nice 12.96% over the past year.
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 34.42%.
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.
The Earnings Per Share is expected to grow by 24.80% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.14% on average over the next years. This is quite good.

Exploring NASDAQ:HALO's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:HALO has earned a 8 for valuation:

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (24.55), we can say HALO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.70, the valuation of HALO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (19.64), we can say HALO is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 94.98% of the companies 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 97.49% 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.

Understanding NASDAQ:HALO's Health

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:

An Altman-Z score of 3.56 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO has a Altman-Z score of 3.56. This is in the better half of the industry: HALO outperforms 78.09% of its industry peers.
The Debt to FCF ratio of HALO (4.24) is better than 94.82% of its industry peers.
A Current Ratio of 7.63 indicates that HALO has no problem at all paying its short term obligations.
HALO has a better Current ratio (7.63) than 67.89% of its industry peers.
HALO has a Quick Ratio of 6.51. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a Quick ratio of 6.51. This is in the better half of the industry: HALO outperforms 62.21% of its industry peers.

Understanding NASDAQ:HALO's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:HALO, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 13.41%, HALO belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
With an excellent Return On Equity value of 101.89%, HALO belongs to the best of the industry, outperforming 99.83% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.39%, HALO belongs to the best of the industry, outperforming 97.66% of the companies in the same industry.
HALO had an Average Return On Invested Capital over the past 3 years of 36.78%. This is significantly above the industry average of 12.73%.
The last Return On Invested Capital (14.39%) for HALO is well below the 3 year average (36.78%), which needs to be investigated, but indicates that HALO had better years and this may not be a problem.
HALO's Profit Margin of 32.53% is amongst the best of the industry. HALO outperforms 98.50% of its industry peers.
In the last couple of years the Profit Margin of HALO has grown nicely.
Looking at the Operating Margin, with a value of 40.35%, HALO belongs to the top of the industry, outperforming 98.83% of the companies in the same industry.
HALO's Operating Margin has improved in the last couple of years.
HALO has a better Gross Margin (76.68%) than 85.45% of its industry peers.

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

Our latest full fundamental report of HALO contains the most current fundamental analsysis.

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.