Our stock screening tool has identified HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as an undervalued gem with strong fundamentals. NASDAQ:HALO boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.
Valuation Analysis 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 8 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 97.97% of the companies listed in the same industry.
- HALO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.09.
- The Price/Forward Earnings ratio is 11.12, which indicates a very decent valuation of HALO.
- Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.64% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (21.73), we can say HALO is valued slightly cheaper.
- Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 96.27% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.31% 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 decent profitability rating of HALO may justify a higher PE ratio.
- HALO's earnings are expected to grow with 30.65% in the coming years. This may justify a more expensive valuation.
Profitability Insights: NASDAQ:HALO
ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HALO, the assigned 7 is noteworthy for profitability:
- HALO's Return On Assets of 16.25% is amongst the best of the industry. HALO outperforms 98.98% of its industry peers.
- The Return On Equity of HALO (335.99%) is better than 100.00% of its industry peers.
- HALO's Return On Invested Capital of 17.00% is amongst the best of the industry. HALO outperforms 98.98% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 13.61%.
- HALO's Profit Margin of 33.96% is amongst the best of the industry. HALO outperforms 98.64% of its industry peers.
- With an excellent Operating Margin value of 41.02%, HALO belongs to the best of the industry, outperforming 99.15% of the companies in the same industry.
- HALO has a better Gross Margin (76.82%) than 85.59% of its industry peers.
What does the Health looks like for NASDAQ:HALO
ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 7 out of 10:
- HALO has an Altman-Z score of 3.47. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
- HALO's Altman-Z score of 3.47 is fine compared to the rest of the industry. HALO outperforms 71.86% of its industry peers.
- Looking at the Debt to FCF ratio, with a value of 4.02, HALO belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
- A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 6.64, HALO is in the better half of the industry, outperforming 62.37% of the companies in the same industry.
- HALO has a Quick Ratio of 5.50. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
Exploring 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 9 for growth:
- HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.23%, which is quite impressive.
- HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.
- The Revenue has grown by 25.59% in the past year. This is a very strong growth!
- Measured over the past years, HALO shows a very strong growth in Revenue. The Revenue has been growing by 40.42% 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 20.73% on average per year.
- HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.86% yearly.
More Decent Value stocks can be found in our Decent Value screener.
Check the latest full fundamental report of HALO for a complete fundamental analysis.
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.