Investors should take note of NASDAQ:HALO, a growth stock that remains attractively priced.

Last update: Jan 8, 2024

Our stock screener has spotted HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as a growth stock which is not overvalued. NASDAQ:HALO is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Growth Assessment of NASDAQ:HALO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:HALO boasts a 8 out of 10:

The Earnings Per Share has grown by an nice 12.96% 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.
HALO shows a strong growth in Revenue. In the last year, 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.
The Earnings Per Share is expected to grow by 25.42% on average over the next years. This is a very strong growth
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.85% yearly.

How do we evaluate the 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:

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (25.56), we can say HALO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 7.92, the valuation of HALO can be described as very cheap.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 99.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.55. HALO is valued rather cheaply when compared to this.
96.45% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 98.14% 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.
HALO's earnings are expected to grow with 29.89% in the coming years. This may justify a more expensive valuation.

Evaluating Health: 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:

An Altman-Z score of 3.30 indicates that HALO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.30, HALO is in the better half of the industry, outperforming 72.76% of the companies in the same industry.
HALO's Debt to FCF ratio of 4.24 is amongst the best of the industry. HALO outperforms 94.92% 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 68.19% 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.
Looking at the Quick ratio, with a value of 6.51, HALO is in the better half of the industry, outperforming 62.44% of the companies in the same industry.

Assessing Profitability 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:

With an excellent Return On Assets value of 13.41%, HALO belongs to the best of the industry, outperforming 98.65% of the companies in the same industry.
The Return On Equity of HALO (101.89%) is better than 99.83% of its industry peers.
The Return On Invested Capital of HALO (14.39%) is better than 97.80% 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 13.22%.
The 3 year average ROIC (36.78%) for HALO is well above the current ROIC(14.39%). The reason for the recent decline needs to be investigated.
The Profit Margin of HALO (32.53%) is better than 98.65% of its industry peers.
In the last couple of years the Profit Margin of HALO has grown nicely.
HALO's Operating Margin of 40.35% is amongst the best of the industry. HALO outperforms 98.98% of its industry peers.
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 85.28% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

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.