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

Last update: Jan 3, 2025

Our stock screener has spotted HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as an undervalued stock with solid fundamentals. NASDAQ:HALO shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Unpacking NASDAQ:HALO's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:HALO has achieved a 9 out of 10:

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.09. HALO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.65, the valuation of HALO can be described as reasonable.
97.85% of the companies in the same industry are more expensive than HALO, based on the Price/Forward Earnings ratio.
HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.45.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.95% 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 96.95% 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.
HALO's earnings are expected to grow with 32.40% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:HALO

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 18.53%, HALO belongs to the best of the industry, outperforming 98.56% of the companies in the same industry.
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 98.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 13.83%.
The 3 year average ROIC (17.78%) for HALO is below the current ROIC(19.23%), indicating increased profibility in the last year.
The Profit Margin of HALO (41.43%) is better than 98.74% of its industry peers.
HALO has a better Operating Margin (50.35%) than 100.00% of its industry peers.
HALO has a better Gross Margin (82.09%) than 87.07% of its industry peers.

Analyzing Health Metrics

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 7 out of 10:

HALO has an Altman-Z score of 4.23. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.23, HALO is in the better half of the industry, outperforming 78.10% of the companies in the same industry.
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.
HALO has a better Debt to FCF ratio (3.83) than 94.08% of its industry peers.
HALO has a Current Ratio of 10.36. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 10.36, HALO belongs to the best of the industry, outperforming 82.23% 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.
HALO's Quick ratio of 9.15 is fine compared to the rest of the industry. HALO outperforms 78.28% of its industry peers.

Unpacking NASDAQ:HALO's Growth Rating

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:

The Earnings Per Share has grown by an impressive 55.33% over the past year.
The Earnings Per Share has been growing by 45.64% on average over the past years. This is a very strong growth
The Revenue has grown by 21.36% in the past year. This is a very strong growth!
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 25.94% yearly.
The Revenue is expected to grow by 16.59% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HALO

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.