Despite its growth, NASDAQ:HALO remains within the realm of affordability.

Last update: Jan 6, 2025

Our stock screener has singled out HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as an attractive growth opportunity. NASDAQ:HALO is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth 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 9 out of 10:

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
The Revenue has grown by 21.36% in the past year. This is a very strong growth!
The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!
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.

Valuation Assessment of NASDAQ:HALO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:HALO boasts a 9 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.48. HALO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 97.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (23.73), we can say HALO is valued rather cheaply.
HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 97.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 96.94% of the companies are valued more expensively.
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 32.40% in the coming years.

Evaluating Health: NASDAQ:HALO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 7 out of 10:

An Altman-Z score of 4.22 indicates that HALO is not in any danger for bankruptcy at the moment.
The Altman-Z score of HALO (4.22) is better than 77.48% 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.
HALO's Debt to FCF ratio of 3.83 is amongst the best of the industry. HALO outperforms 94.05% 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 82.16% 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.
With a decent Quick ratio value of 9.15, HALO is doing good in the industry, outperforming 78.20% of the companies in the same industry.

A Closer Look at Profitability for 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 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.
Looking at the Return On Invested Capital, with a value of 19.23%, HALO belongs to the top of the industry, outperforming 98.02% of the companies in the same industry.
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.
HALO's Profit Margin of 41.43% is amongst the best of the industry. HALO outperforms 98.74% of its industry peers.
HALO's Operating Margin of 50.35% is amongst the best of the industry. HALO outperforms 100.00% of its industry peers.
HALO has a Gross Margin of 82.09%. This is amongst the best in the industry. HALO outperforms 87.03% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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.