NASDAQ:HALO is probably undervalued for the fundamentals it is displaying.

Last update: May 29, 2024

Our stock screener has singled out HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as a stellar value proposition. NASDAQ:HALO not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

A Closer Look at 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:

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.58% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.20. HALO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.33, which indicates a very decent valuation of HALO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.93% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (20.02), we can say HALO is valued rather cheaply.
HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 96.89% of the companies in the same industry.
HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 98.62% of the companies 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 30.02% in the coming years.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 7 out of 10:

HALO's Return On Assets of 17.31% is amongst the best of the industry. HALO outperforms 98.62% of its industry peers.
With an excellent Return On Equity value of 179.30%, HALO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HALO's Return On Invested Capital of 18.09% is amongst the best of the industry. HALO outperforms 98.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 14.58%.
The 3 year average ROIC (17.78%) for HALO is below the current ROIC(18.09%), indicating increased profibility in the last year.
HALO's Profit Margin of 36.95% is amongst the best of the industry. HALO outperforms 98.96% of its industry peers.
The Operating Margin of HALO (44.25%) is better than 99.48% of its industry peers.
With an excellent Gross Margin value of 78.51%, HALO belongs to the best of the industry, outperforming 86.87% of the companies in the same industry.

What does the Health looks like for NASDAQ:HALO

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:HALO, the assigned 7 for health provides valuable insights:

HALO has an Altman-Z score of 3.74. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.74, HALO is in the better half of the industry, outperforming 76.51% of the companies in the same industry.
The Debt to FCF ratio of HALO is 3.54, which is a good value as it means it would take HALO, 3.54 years of fcf income to pay off all of its debts.
HALO has a better Debt to FCF ratio (3.54) than 95.68% of its industry peers.
A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
With a decent Current ratio value of 6.64, HALO is doing good in the industry, outperforming 63.56% of the companies in the same industry.
A Quick Ratio of 5.36 indicates that HALO has no problem at all paying its short term obligations.

Deciphering NASDAQ:HALO's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:HALO scores a 9 out of 10:

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.64%, 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 22.40% in the past year. This is a very strong growth!
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 22.93% on average per year.
The Revenue is expected to grow by 13.80% on average over the next years. This is quite good.

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 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.