NASDAQ:HALO is not too expensive for the growth it is showing.

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) was identified as an affordable growth stock by our stock screener. NASDAQ:HALO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Unpacking NASDAQ:HALO's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:HALO, the assigned 9 reflects its growth potential:

• 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.
• The Earnings Per Share has been growing by 45.64% 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 25.59%.
• The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!
• 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.
• The Revenue is expected to grow by 11.91% on average over the next years. This is quite good.

How do we evaluate the Valuation for NASDAQ:HALO?

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:

• 97.77% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.
• HALO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
• With a Price/Forward Earnings ratio of 10.29, the valuation of HALO can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.80% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.40. HALO is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.40% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 98.29% of the companies listed in the same industry.
• HALO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• HALO has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as HALO's earnings are expected to grow with 30.48% in the coming years.

Assessing Health Metrics 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:

• An Altman-Z score of 3.43 indicates that HALO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.43, HALO is in the better half of the industry, outperforming 76.88% of the companies in the same industry.
• HALO's Debt to FCF ratio of 4.02 is amongst the best of the industry. HALO outperforms 95.03% of its industry peers.
• A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
• HALO has a better Current ratio (6.64) than 66.44% of its industry peers.
• A Quick Ratio of 5.50 indicates that HALO has no problem at all paying its short term obligations.

How do we evaluate the Profitability for NASDAQ:HALO?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:HALO, the assigned 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 16.25%, HALO belongs to the top of the industry, outperforming 98.97% of the companies in the same industry.
• The Return On Equity of HALO (335.99%) is better than 100.00% of its industry peers.
• HALO has a Return On Invested Capital of 17.00%. This is amongst the best in the industry. HALO outperforms 98.46% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 13.58%.
• HALO has a Profit Margin of 33.96%. This is amongst the best in the industry. HALO outperforms 99.14% of its industry peers.
• HALO's Operating Margin of 41.02% is amongst the best of the industry. HALO outperforms 99.32% of its industry peers.
• With an excellent Gross Margin value of 76.82%, HALO belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.