Despite its impressive fundamentals, NASDAQ:HALO remains undervalued.

Last update: Dec 29, 2023

Uncover the potential of HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as our stock screener's choice for an undervalued stock. NASDAQ:HALO maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Understanding NASDAQ:HALO's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:HALO has achieved a 9 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 97.33% of the companies listed in the same industry.
HALO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.20, which is the current average of the S&P500 Index.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 8.38.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 99.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.09. HALO is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 95.99% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.00% of the companies are valued more expensively.
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 29.89% in the coming years. This may justify a more expensive valuation.

Profitability Examination for 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:

The Return On Assets of HALO (13.41%) is better than 98.50% of its industry peers.
The Return On Equity of HALO (101.89%) is better than 99.83% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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.
HALO has a Profit Margin of 32.53%. This is amongst the best in the industry. HALO outperforms 98.50% of its industry peers.
In the last couple of years the Profit Margin of HALO has grown nicely.
With an excellent Operating Margin value of 40.35%, HALO belongs to the best of the industry, outperforming 98.83% of the companies in the same industry.
In the last couple of years the Operating Margin of HALO has grown nicely.
HALO's Gross Margin of 76.68% is amongst the best of the industry. HALO outperforms 85.48% of its industry peers.

A Closer Look at Health for NASDAQ:HALO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has received a 7 out of 10:

HALO has an Altman-Z score of 3.40. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO has a better Altman-Z score (3.40) than 72.62% of its industry peers.
HALO's Debt to FCF ratio of 4.24 is amongst the best of the industry. HALO outperforms 94.82% 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's Current ratio of 7.63 is fine compared to the rest of the industry. HALO outperforms 68.11% of its industry peers.
A Quick Ratio of 6.51 indicates that HALO has no problem at all paying its short term obligations.
HALO's Quick ratio of 6.51 is fine compared to the rest of the industry. HALO outperforms 62.27% of its industry peers.

Evaluating Growth: NASDAQ:HALO

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:

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.96%, which is quite good.
The Earnings Per Share has been growing by 42.34% on average over the past years. This is a very strong growth
Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 34.42%.
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.
The Revenue is expected to grow by 17.85% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.