Don't overlook NASDAQ:HALO—it's a hidden gem with strong fundamentals and an attractive price tag.

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.

Unpacking NASDAQ:HALO's Valuation Rating

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 96.86% 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 28.73.
• Based on the Price/Forward Earnings ratio of 9.99, the valuation of HALO can be described as reasonable.
• Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
• HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.21.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.16% of the companies listed in the same industry.
• 98.60% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
• The 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 32.63% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

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 Return On Assets of 17.31%. This is amongst the best in the industry. HALO outperforms 98.60% of its industry peers.
• The Return On Equity of HALO (179.30%) is better than 100.00% of its industry peers.
• HALO has a Return On Invested Capital of 18.09%. This is amongst the best in the industry. HALO outperforms 97.91% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 15.45%.
• The 3 year average ROIC (17.78%) for HALO is below the current ROIC(18.09%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 36.95%, HALO belongs to the top of the industry, outperforming 98.95% of the companies in the same industry.
• HALO's Operating Margin of 44.25% is amongst the best of the industry. HALO outperforms 99.48% of its industry peers.
• The Gross Margin of HALO (78.51%) is better than 86.74% of its industry peers.

A Closer Look at Health 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:

• An Altman-Z score of 4.07 indicates that HALO is not in any danger for bankruptcy at the moment.
• HALO has a Altman-Z score of 4.07. This is in the better half of the industry: HALO outperforms 77.66% of its industry peers.
• 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.
• With an excellent Debt to FCF ratio value of 3.54, HALO belongs to the best of the industry, outperforming 95.64% 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.
• With a decent Current ratio value of 6.64, HALO is doing good in the industry, outperforming 63.53% 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.

Growth Assessment of NASDAQ:HALO

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.
• The Earnings Per Share has been growing by 45.64% on average over the past years. This is a very strong growth
• Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 22.40%.
• HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.42% yearly.
• HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.93% yearly.
• The Revenue is expected to grow by 13.80% on average over the next years. This is quite good.

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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.