NASDAQ:HALO is showing good growth, while it is not too expensive.

Last update: Jul 18, 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.

Assessing Growth Metrics 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 39.64% over the past year.
Measured over the past years, HALO shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.64% on average per year.
The Revenue has grown by 22.40% 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 25.47% yearly.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.95% yearly.

Evaluating Valuation: 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:

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.37% 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 29.15.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 10.88.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 97.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.79, HALO is valued a bit cheaper.
HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 96.15% of the companies in the same industry.
98.77% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
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 32.63% in the coming years. This may justify a more expensive valuation.

Deciphering NASDAQ:HALO's Health Rating

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 4.28. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO's Altman-Z score of 4.28 is fine compared to the rest of the industry. HALO outperforms 77.23% 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.
HALO has a better Debt to FCF ratio (3.54) than 95.80% of its industry peers.
HALO has a Current Ratio of 6.64. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a better Current ratio (6.64) than 63.40% of its industry peers.
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.

Profitability Examination for 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:

With an excellent Return On Assets value of 17.31%, HALO belongs to the best of the industry, outperforming 99.12% of the companies in the same industry.
HALO's Return On Equity of 179.30% is amongst the best of the industry. HALO outperforms 100.00% of its industry peers.
The Return On Invested Capital of HALO (18.09%) is better than 98.07% 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 14.63%.
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.
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 has a Operating Margin of 44.25%. This is amongst the best in the industry. HALO outperforms 99.47% of its industry peers.
The Gross Margin of HALO (78.51%) is better than 86.87% 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.