Investors seeking growth at a reasonable cost should explore NASDAQ:HALO.

Last update: Nov 1, 2024

Here's HALOZYME THERAPEUTICS INC (NASDAQ:HALO) for you, a growth stock our stock screener believes is undervalued. NASDAQ:HALO is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Analysis 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:

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.33%, 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
Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 25.63%.
HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.42% yearly.
HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 15.95% on average per year.

Assessing Valuation Metrics 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:

97.68% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.16. HALO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.45, the valuation of HALO can be described as very reasonable.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 98.40% of the companies in the same industry.
HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.06.
HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 96.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 97.68% of the companies are valued more expensively.
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 31.52% in the coming years.

A Closer Look at Health for NASDAQ:HALO

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:

An Altman-Z score of 4.12 indicates that HALO is not in any danger for bankruptcy at the moment.
The Altman-Z score of HALO (4.12) is better than 76.83% 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.
The Debt to FCF ratio of HALO (3.68) is better than 95.01% 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 Current ratio of 7.41. This is in the better half of the industry: HALO outperforms 68.98% of its industry peers.
A Quick Ratio of 6.21 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.21, HALO is in the better half of the industry, outperforming 62.75% of the companies in the same industry.

Evaluating Profitability: 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 17.12%, HALO belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
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 97.86% 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 13.89%.
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.
Looking at the Profit Margin, with a value of 38.62%, HALO belongs to the top of the industry, outperforming 98.40% of the companies in the same industry.
With an excellent Operating Margin value of 46.33%, HALO belongs to the best of the industry, outperforming 99.64% of the companies in the same industry.
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.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of HALO contains the most current fundamental analsysis.

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.