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

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.

Valuation Assessment of NASDAQ:HALO

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:HALO has achieved a 8 out of 10:

• Based on the Price/Earnings ratio, HALO is valued cheaper than 97.91% of the companies in the same industry.
• When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (29.18), we can say HALO is valued slightly cheaper.
• The Price/Forward Earnings ratio is 10.74, 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 97.56% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.38, HALO is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 96.17% of the companies are valued more expensively.
• HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 98.78% 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 32.64% in the coming years.

A Closer Look at Profitability for NASDAQ:HALO

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:

• The Return On Assets of HALO (17.31%) is better than 99.30% of its industry peers.
• HALO has a Return On Equity of 179.30%. This is amongst the best in the industry. HALO outperforms 100.00% of its industry peers.
• HALO has a better Return On Invested Capital (18.09%) than 98.26% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 14.22%.
• The 3 year average ROIC (17.78%) for HALO is below the current ROIC(18.09%), indicating increased profibility in the last year.
• The Profit Margin of HALO (36.95%) is better than 98.95% of its industry peers.
• HALO has a Operating Margin of 44.25%. This is amongst the best in the industry. HALO outperforms 99.48% of its industry peers.
• Looking at the Gross Margin, with a value of 78.51%, HALO belongs to the top of the industry, outperforming 86.76% of the companies in the same industry.

Understanding NASDAQ:HALO's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:HALO was assigned a score of 7 for health:

• HALO has an Altman-Z score of 4.25. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of HALO (4.25) is better than 78.05% 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.
• Looking at the Debt to FCF ratio, with a value of 3.54, HALO belongs to the top of the industry, outperforming 95.99% of the companies in the same industry.
• 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 63.41% 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.

Analyzing Growth Metrics

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:HALO boasts a 9 out of 10:

• 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.
• Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 22.40%.
• 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 25.47% on average per year.
• The Revenue is expected to grow by 15.95% on average over the next years. This is quite good.

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

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

Disclaimer

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.