In a market where value is scarce, NASDAQ:HALO offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 13, 2024

Our stock screener has singled out HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as a stellar value proposition. NASDAQ:HALO not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Evaluating Valuation: NASDAQ:HALO

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:HALO was assigned a score of 9 for valuation:

Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.70% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.13. HALO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.70, the valuation of HALO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.71, HALO is valued rather cheaply.
HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 97.17% of the companies in the same industry.
HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 97.17% of the companies in the same industry.
The 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.

How do we evaluate the Profitability for NASDAQ:HALO?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HALO, the assigned 7 is noteworthy for profitability:

HALO's Return On Assets of 18.53% is amongst the best of the industry. HALO outperforms 98.76% of its industry peers.
With an excellent Return On Equity value of 86.69%, HALO belongs to the best of the industry, outperforming 99.65% of the companies in the same industry.
HALO has a better Return On Invested Capital (19.23%) than 98.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 13.58%.
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.
HALO has a better Profit Margin (41.43%) than 98.94% of its industry peers.
HALO has a better Operating Margin (50.35%) than 100.00% of its industry peers.
Looking at the Gross Margin, with a value of 82.09%, HALO belongs to the top of the industry, outperforming 87.28% of the companies in the same industry.

Unpacking NASDAQ:HALO's Health Rating

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:

An Altman-Z score of 4.22 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO's Altman-Z score of 4.22 is fine compared to the rest of the industry. HALO outperforms 77.56% of its industry peers.
The Debt to FCF ratio of HALO is 3.83, which is a good value as it means it would take HALO, 3.83 years of fcf income to pay off all of its debts.
HALO has a Debt to FCF ratio of 3.83. This is amongst the best in the industry. HALO outperforms 94.35% of its industry peers.
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 82.33% of the companies in the same industry.
A Quick Ratio of 9.15 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 9.15, HALO is in the better half of the industry, outperforming 78.27% of the companies in the same industry.

Growth Assessment of NASDAQ:HALO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:HALO, the assigned 9 reflects its growth potential:

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.
The Earnings Per Share is expected to grow by 25.94% on average over the next years. This is a very strong growth
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 16.59% on average per year.

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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.