NASDAQ:HALO, a growth stock which is not overvalued.

Last update: Jun 4, 2024

Uncover the potential of HALOZYME THERAPEUTICS INC (NASDAQ:HALO), a growth stock that our stock screener found to be reasonably priced. NASDAQ:HALO is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Growth Insights: NASDAQ:HALO

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:

The Earnings Per Share has grown by an impressive 39.64% 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 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!
The Earnings Per Share is expected to grow by 22.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.80% on average over the next years. This is quite good.

Understanding NASDAQ:HALO's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:HALO has earned a 9 for valuation:

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.57% of the companies in the same industry.
HALO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.88, which is the current average of the S&P500 Index.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 9.76.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.97. 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 96.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.61% 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.
The decent profitability rating of HALO 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.

Exploring NASDAQ:HALO's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has achieved a 7 out of 10:

HALO has an Altman-Z score of 3.83. 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 3.83, HALO is in the better half of the industry, outperforming 76.43% of the companies in the same industry.
HALO has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as HALO would need 3.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.54, HALO belongs to the top of the industry, outperforming 95.67% 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 63.43% of the companies in the same industry.
HALO has a Quick Ratio of 5.36. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

Evaluating Profitability: NASDAQ:HALO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HALO has achieved a 7:

HALO has a Return On Assets of 17.31%. This is amongst the best in the industry. HALO outperforms 98.44% 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 97.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 15.14%.
The last Return On Invested Capital (18.09%) for HALO is above the 3 year average (17.78%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 36.95%, HALO belongs to the best of the industry, outperforming 98.96% of the companies in the same industry.
HALO has a Operating Margin of 44.25%. This is amongst the best in the industry. HALO outperforms 99.48% of its industry peers.
HALO's Gross Margin of 78.51% is amongst the best of the industry. HALO outperforms 86.83% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HALO

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.