Despite its impressive fundamentals, NASDAQ:HALO remains undervalued.

Last update: Oct 10, 2024

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.

Valuation Analysis for NASDAQ:HALO

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:

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.54% of the companies listed in the same industry.
HALO is valuated cheaply when we compare the Price/Earnings ratio to 31.24, which is the current average of the S&P500 Index.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 10.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. HALO is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.13% of the companies in the same industry.
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.
HALO has a very decent profitability rating, which 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.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:HALO, the assigned 7 is a significant indicator of profitability:

With an excellent Return On Assets value of 17.12%, HALO belongs to the best of the industry, outperforming 98.59% of the companies in the same industry.
With an excellent Return On Equity value of 116.53%, HALO belongs to the best of the industry, outperforming 99.82% of the companies in the same industry.
HALO's Return On Invested Capital of 17.85% is amongst the best of the industry. HALO outperforms 98.06% 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 13.75%.
The 3 year average ROIC (17.78%) for HALO is below the current ROIC(17.85%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 38.62%, HALO belongs to the best of the industry, outperforming 98.59% of the companies in the same industry.
Looking at the Operating Margin, with a value of 46.33%, HALO belongs to the top of the industry, outperforming 99.65% of the companies in the same industry.
HALO has a Gross Margin of 79.96%. This is amongst the best in the industry. HALO outperforms 86.97% of its industry peers.

Unpacking NASDAQ:HALO's Health Rating

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 4.12. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO has a better Altman-Z score (4.12) than 77.82% of its industry peers.
HALO has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as HALO would need 3.68 years to pay back of 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 95.25% of the companies in the same industry.
HALO has a Current Ratio of 7.41. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO's Current ratio of 7.41 is fine compared to the rest of the industry. HALO outperforms 69.19% of its industry peers.
HALO has a Quick Ratio of 6.21. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a better Quick ratio (6.21) than 62.85% of its industry peers.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HALO has received a 8 out of 10:

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.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.
HALO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.88%.
The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!
HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
The Revenue is expected to grow by 15.95% on average over the next years. This is quite good.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.