NASDAQ:HALO: good value for what you're paying.

Last update: Jan 19, 2024

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) was identified as a decent value stock by our stock screener. NASDAQ:HALO scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

A Closer Look at Valuation for NASDAQ:HALO

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 97.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (25.64), we can say HALO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 7.88, the valuation of HALO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 99.16% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.61. HALO is valued rather cheaply when compared to this.
HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 95.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.15% 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.
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.

How do we evaluate the Profitability for NASDAQ:HALO?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HALO has achieved a 8:

Looking at the Return On Assets, with a value of 13.41%, HALO belongs to the top of the industry, outperforming 98.65% of the companies in the same industry.
HALO has a better Return On Equity (101.89%) than 100.00% of its industry peers.
HALO has a better Return On Invested Capital (14.39%) than 97.64% 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 13.44%.
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.
Looking at the Profit Margin, with a value of 32.53%, HALO belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
In the last couple of years the Profit Margin of HALO has grown nicely.
HALO has a Operating Margin of 40.35%. This is amongst the best in the industry. HALO outperforms 98.99% of its industry peers.
HALO's Operating Margin has improved in the last couple of years.
HALO's Gross Margin of 76.68% is amongst the best of the industry. HALO outperforms 85.52% of its industry peers.

Health Analysis for NASDAQ:HALO

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 3.29. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO has a better Altman-Z score (3.29) than 72.56% of its industry peers.
The Debt to FCF ratio of HALO (4.24) is better than 94.95% 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 Current ratio of 7.63. This is in the better half of the industry: HALO outperforms 68.18% 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 62.12% of its industry peers.

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:

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
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.
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.

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

Keep in mind

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.