Looking for growth without the hefty price tag? Consider NASDAQ:HALO.

Last update: Feb 19, 2024

Our stock screening tool has pinpointed HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as a growth stock that isn't overvalued. NASDAQ:HALO is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

A Closer Look at 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.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.34% yearly.
Looking at the last year, HALO shows a very strong growth in Revenue. 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.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.85% yearly.

Understanding NASDAQ:HALO's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:HALO was assigned a score of 9 for valuation:

HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 97.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (26.19), we can say HALO is valued slightly cheaper.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.51. HALO is valued rather cheaply when compared to this.
95.78% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.97% of the companies listed in the same industry.
The 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 25.83% in the coming years. This may justify a more expensive valuation.

Health Assessment of 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 3.35 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO has a better Altman-Z score (3.35) than 71.62% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 4.24, HALO belongs to the top of the industry, outperforming 94.93% of the companies in the same industry.
A Current Ratio of 7.63 indicates that HALO has no problem at all paying its short term obligations.
HALO has a Current ratio of 7.63. This is in the better half of the industry: HALO outperforms 67.06% of its industry peers.
A Quick Ratio of 6.51 indicates that HALO has no problem at all paying 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 61.82% of the companies in the same industry.

Understanding NASDAQ:HALO's Profitability

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:

With an excellent Return On Assets value of 13.41%, HALO belongs to the best of the industry, outperforming 98.48% of the companies in the same industry.
HALO has a better Return On Equity (101.89%) than 100.00% of its industry peers.
HALO's Return On Invested Capital of 14.39% is amongst the best of the industry. HALO outperforms 97.64% of its industry peers.
HALO had an Average Return On Invested Capital over the past 3 years of 36.78%. This is significantly above the industry average of 13.79%.
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.
The Profit Margin of HALO (32.53%) is better than 98.31% 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 98.99% of the companies in the same industry.
In the last couple of years the Operating Margin of HALO has grown nicely.
Looking at the Gross Margin, with a value of 76.68%, HALO belongs to the top of the industry, outperforming 85.81% of the companies in the same industry.

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

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.