Don't overlook NASDAQ:HALO—a stock with solid growth prospects and a reasonable valuation.

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.

Understanding NASDAQ:HALO's Growth

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.
• Measured over the past years, HALO shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.34% on average per year.
• HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.42%.
• HALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
• HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.42% yearly.
• The Revenue is expected to grow by 17.85% on average over the next years. This is quite good.

Valuation Assessment of NASDAQ:HALO

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:HALO, the assigned 9 reflects its valuation:

• Based on the Price/Earnings ratio, HALO is valued cheaper than 97.98% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 26.02, HALO is valued a bit cheaper.
• HALO is valuated reasonably with a Price/Forward Earnings ratio of 9.56.
• Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.99% of the companies in the same industry.
• HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.
• Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 95.95% of the companies are valued more expensively.
• 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.
• A more expensive valuation may be justified as HALO's earnings are expected to grow with 25.83% in the coming years.

Understanding NASDAQ:HALO's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has achieved a 7 out of 10:

• An Altman-Z score of 3.26 indicates that HALO is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.26, HALO is doing good in the industry, outperforming 72.34% of the companies in the same industry.
• The Debt to FCF ratio of HALO (4.24) is better than 94.94% of its industry peers.
• A Current Ratio of 7.63 indicates that HALO has no problem at all paying its short term obligations.
• HALO's Current ratio of 7.63 is fine compared to the rest of the industry. HALO outperforms 68.13% of its industry peers.
• A Quick Ratio of 6.51 indicates that HALO has no problem at all paying its short term obligations.
• With a decent Quick ratio value of 6.51, HALO is doing good in the industry, outperforming 62.06% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:HALO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:HALO was assigned a score of 8 for profitability:

• HALO has a Return On Assets of 13.41%. This is amongst the best in the industry. HALO outperforms 98.65% of its industry peers.
• HALO's Return On Equity of 101.89% is amongst the best of the industry. HALO outperforms 100.00% of its industry peers.
• With an excellent Return On Invested Capital value of 14.39%, HALO belongs to the best of the industry, outperforming 97.64% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for HALO is significantly above the industry average of 13.65%.
• 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.
• HALO's Profit Margin has improved in the last couple of years.
• The Operating Margin of HALO (40.35%) is better than 98.99% of its industry peers.
• In the last couple of years the Operating Margin of HALO has grown nicely.
• HALO has a better Gross Margin (76.68%) than 85.50% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

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.