NASDAQ:HALO is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 22, 2024

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) has caught the attention of our stock screener as a great value stock. NASDAQ:HALO excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Insights: NASDAQ:HALO

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:HALO, the assigned 9 reflects its valuation:

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, HALO is valued rather cheaply.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (23.82), we can say HALO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 97.15% 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 32.04% in the coming years.

Evaluating Profitability: NASDAQ:HALO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 7 out of 10:

HALO has a better Return On Assets (18.53%) than 98.40% of its industry peers.
The Return On Equity of HALO (86.69%) is better than 99.64% of its industry peers.
HALO has a Return On Invested Capital of 19.23%. This is amongst the best in the industry. HALO outperforms 97.68% 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 15.31%.
The last Return On Invested Capital (19.23%) for HALO is above the 3 year average (17.78%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 41.43%, HALO belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
With an excellent Operating Margin value of 50.35%, HALO belongs to the best of the industry, outperforming 99.82% of the companies in the same industry.
The Gross Margin of HALO (82.09%) is better than 86.99% of its industry peers.

Deciphering NASDAQ:HALO's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 7 out of 10:

An Altman-Z score of 4.13 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO has a better Altman-Z score (4.13) than 78.25% of its industry peers.
HALO has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as HALO would need 3.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.83, HALO belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
A Current Ratio of 10.36 indicates that HALO has no problem at all paying its short term obligations.
With an excellent Current ratio value of 10.36, HALO belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
HALO has a Quick Ratio of 9.15. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a better Quick ratio (9.15) than 78.97% of its industry peers.

Deciphering 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 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.
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 a strong growth in Revenue. In the last year, the Revenue has grown by 21.36%.
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.
HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
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

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.