Investors should take notice of NASDAQ:HALO—it offers a great deal for the fundamentals it presents.

Last update: Oct 31, 2024

Uncover the hidden value in HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as our stock screening tool recommends it as an undervalued choice. NASDAQ:HALO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis for NASDAQ:HALO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:HALO has received a 9 out of 10:

HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 97.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.51. HALO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.35, the valuation of HALO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 98.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (23.39), we can say HALO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.86% of the companies listed 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 32.05% in the coming years.

Understanding NASDAQ:HALO's Profitability

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:

Looking at the Return On Assets, with a value of 17.12%, HALO belongs to the top of the industry, outperforming 98.40% of the companies in the same industry.
The Return On Equity of HALO (116.53%) is better than 99.82% of its industry peers.
The Return On Invested Capital of HALO (17.85%) is better than 97.86% 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 13.89%.
The 3 year average ROIC (17.78%) for HALO is below the current ROIC(17.85%), indicating increased profibility in the last year.
The Profit Margin of HALO (38.62%) is better than 98.40% of its industry peers.
HALO has a Operating Margin of 46.33%. This is amongst the best in the industry. HALO outperforms 99.64% of its industry peers.
With an excellent Gross Margin value of 79.96%, HALO belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.

A Closer Look at Health for NASDAQ:HALO

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 4.12. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.12, HALO is doing good in the industry, outperforming 75.94% of the companies in the same industry.
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.
HALO has a better Debt to FCF ratio (3.68) than 95.19% of its industry peers.
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 has a better Current ratio (7.41) than 68.98% 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's Quick ratio of 6.21 is fine compared to the rest of the industry. HALO outperforms 62.75% of its industry peers.

Assessing Growth Metrics for NASDAQ:HALO

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 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.
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 quite strong growth in Revenue. The Revenue has grown by 12.88% in the last year.
HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.42% yearly.
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.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.95% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.