NASDAQ:HALO is not too expensive for the growth it is showing.

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:HALO is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Unpacking NASDAQ:HALO's Growth Rating

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 8 for growth:

• HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.57%, 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
• The Revenue has grown by 12.88% in the past year. This is quite good.
• 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.
• The Earnings Per Share is expected to grow by 25.47% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.95% on average over the next years. This is quite good.

Valuation Assessment of 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:

• Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 96.84% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 30.00. HALO is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 96.66% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (21.62), we can say HALO is valued slightly cheaper.
• 95.96% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 97.54% 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.
• The decent profitability rating of HALO may justify a higher PE ratio.
• HALO's earnings are expected to grow with 32.05% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NASDAQ:HALO

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 7 out of 10:

• An Altman-Z score of 4.76 indicates that HALO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of HALO (4.76) is better than 78.03% of its industry peers.
• The Debt to FCF ratio of HALO is 3.68, which is a good value as it means it would take HALO, 3.68 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.68, HALO belongs to the top of the industry, outperforming 95.61% of the companies in the same industry.
• A Current Ratio of 7.41 indicates that HALO has no problem at all paying its short term obligations.
• HALO's Current ratio of 7.41 is fine compared to the rest of the industry. HALO outperforms 67.84% of its industry peers.
• A Quick Ratio of 6.21 indicates that HALO has no problem at all paying its short term obligations.
• HALO has a Quick ratio of 6.21. This is in the better half of the industry: HALO outperforms 61.86% of its industry peers.

Profitability Examination for 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:

• The Return On Assets of HALO (17.12%) is better than 98.77% of its industry peers.
• HALO has a Return On Equity of 116.53%. This is amongst the best in the industry. HALO outperforms 99.82% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 17.85%, HALO belongs to the top of the industry, outperforming 98.07% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 12.95%.
• The last Return On Invested Capital (17.85%) for HALO is above the 3 year average (17.78%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 38.62%, HALO belongs to the best of the industry, outperforming 98.42% of the companies in the same industry.
• HALO has a better Operating Margin (46.33%) than 99.65% of its industry peers.
• Looking at the Gross Margin, with a value of 79.96%, HALO belongs to the top of the industry, outperforming 86.64% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of HALO for a complete fundamental analysis.

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.