When you look at NASDAQ:HALO, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: May 8, 2024

Discover HALOZYME THERAPEUTICS INC (NASDAQ:HALO), an undervalued stock highlighted by our stock screener. NASDAQ:HALO showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

A Closer Look at Valuation for NASDAQ:HALO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:HALO boasts a 8 out of 10:

Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.09% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (28.11), we can say HALO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 10.96, the valuation of HALO can be described as reasonable.
Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, HALO is valued a bit cheaper.
96.58% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.12% of the companies are valued more expensively.
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.
HALO's earnings are expected to grow with 30.48% in the coming years. This may justify a more expensive valuation.

Profitability Insights: 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 7 for profitability:

HALO has a better Return On Assets (16.25%) than 98.97% of its industry peers.
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 98.29% of its industry peers.
HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 14.11%.
HALO has a better Profit Margin (33.96%) than 99.15% of its industry peers.
HALO has a better Operating Margin (41.02%) than 99.49% of its industry peers.
Looking at the Gross Margin, with a value of 76.82%, HALO belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.

Understanding NASDAQ:HALO's Health Score

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:

HALO has an Altman-Z score of 3.54. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HALO (3.54) is better than 75.56% of its industry peers.
HALO has a better Debt to FCF ratio (4.02) than 95.21% of its industry peers.
A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
HALO's Current ratio of 6.64 is fine compared to the rest of the industry. HALO outperforms 65.81% of its industry peers.
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.

A Closer Look at Growth 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 9 for growth:

The Earnings Per Share has grown by an impressive 25.23% over the past year.
The Earnings Per Share has been growing by 45.64% on average over the past years. This is a very strong growth
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.
HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.93% yearly.
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 13.80% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

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.