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

Last update: Dec 18, 2023

Take a closer look at HALOZYME THERAPEUTICS INC (NASDAQ:HALO), an affordable growth stock uncovered by our stock screener. NASDAQ:HALO boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How We Gauge Growth 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:

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
The Revenue has grown by 34.42% in the past year. This is a very strong growth!
The Revenue has been growing by 15.83% on average over the past years. This is quite good.
Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 25.42% on average per year.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.85% yearly.

A Closer Look at Valuation for NASDAQ:HALO

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 9 for valuation:

HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 97.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.46. HALO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.80 indicates a reasonable valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 99.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.07, HALO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 98.01% of the companies in the same industry.
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 29.89% in the coming years.

Understanding NASDAQ:HALO's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 3.49. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HALO (3.49) is better than 74.42% of its industry peers.
HALO's Debt to FCF ratio of 4.24 is amongst the best of the industry. HALO outperforms 94.85% of its industry peers.
HALO has a Current Ratio of 7.63. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a better Current ratio (7.63) than 68.27% of its industry peers.
A Quick Ratio of 6.51 indicates that HALO has no problem at all paying its short term obligations.
HALO has a Quick ratio of 6.51. This is in the better half of the industry: HALO outperforms 62.62% of its industry peers.

Profitability Assessment of 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:

HALO has a better Return On Assets (13.41%) than 98.50% of its industry peers.
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.
HALO has a Return On Invested Capital of 14.39%. This is amongst the best in the industry. HALO outperforms 97.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HALO is significantly above the industry average of 13.03%.
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.
With an excellent Profit Margin value of 32.53%, HALO belongs to the best of the industry, outperforming 98.50% of the companies in the same industry.
HALO's Profit Margin has improved in the last couple of years.
HALO has a better Operating Margin (40.35%) than 98.84% of its industry peers.
HALO's Operating Margin has improved in the last couple of years.
HALO has a better Gross Margin (76.68%) than 85.55% 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.