Stock Analysis: Decent Value Stocks

Fundamental Rating

Taking everything into account, HALO scores 8 out of 10 in our fundamental rating. HALO was compared to 568 industry peers in the Biotechnology industry. HALO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HALO is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make HALO suitable for value and growth and quality investing!

1. Profitability

1.1 Basic Checks

HALO had positive earnings in the past year.

HALO had a positive operating cash flow in the past year.

In the past 5 years HALO has always been profitable.

In the past 5 years HALO always reported a positive cash flow from operatings.

1.2 Ratios

HALO has a Return On Assets of 21.52%. This is amongst the best in the industry. HALO outperforms 98.94% of its industry peers.

With an excellent Return On Equity value of 122.06%, HALO belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.

HALO has a Return On Invested Capital of 23.00%. This is amongst the best in the industry. HALO outperforms 99.12% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 14.25%.

The last Return On Invested Capital (23.00%) for HALO is above the 3 year average (17.81%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	21.52%
ROE	122.06%
ROIC	23%

ROA(3y)16.25%

ROA(5y)21.49%

ROE(3y)192.36%

ROE(5y)173.4%

ROIC(3y)17.81%

ROIC(5y)29.79%

1.3 Margins

HALO's Profit Margin of 43.74% is amongst the best of the industry. HALO outperforms 99.12% of its industry peers.

In the last couple of years the Profit Margin of HALO has declined.

HALO has a better Operating Margin (54.32%) than 99.82% of its industry peers.

In the last couple of years the Operating Margin of HALO has declined.

The Gross Margin of HALO (84.30%) is better than 86.97% of its industry peers.

In the last couple of years the Gross Margin of HALO has grown nicely.

		Industry Rank	Sector Rank
OM	54.32%
PM (TTM)	43.74%
GM	84.3%

OM growth 3Y-4.44%

OM growth 5YN/A

PM growth 3Y-21.62%

PM growth 5YN/A

GM growth 3Y1.07%

GM growth 5Y1.9%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

HALO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.

HALO has less shares outstanding than it did 1 year ago.

HALO has less shares outstanding than it did 5 years ago.

HALO has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.71 indicates that HALO is not in any danger for bankruptcy at the moment.

HALO has a better Altman-Z score (4.71) than 80.99% of its industry peers.

HALO has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as HALO would need 3.21 years to pay back of all of its debts.

HALO has a Debt to FCF ratio of 3.21. This is amongst the best in the industry. HALO outperforms 94.01% of its industry peers.

HALO has a Debt/Equity ratio of 4.14. This is a high value indicating a heavy dependency on external financing.

HALO has a Debt to Equity ratio of 4.14. This is amonst the worse of the industry: HALO underperforms 83.27% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	4.14
Debt/FCF	3.21
Altman-Z	4.71

ROIC/WACC2.44

WACC9.42%

2.3 Liquidity

A Current Ratio of 7.80 indicates that HALO has no problem at all paying its short term obligations.

HALO has a Current ratio of 7.80. This is in the better half of the industry: HALO outperforms 73.42% of its industry peers.

A Quick Ratio of 6.78 indicates that HALO has no problem at all paying its short term obligations.

HALO's Quick ratio of 6.78 is fine compared to the rest of the industry. HALO outperforms 67.96% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	7.8
Quick Ratio	6.78

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 52.16% over the past year.

Measured over the past years, HALO shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.12% on average per year.

HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.46%.

HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.95% yearly.

EPS 1Y (TTM)52.16%

EPS 3Y30.12%

EPS 5YN/A

EPS Q2Q%53.66%

Revenue 1Y (TTM)22.46%

Revenue growth 3Y31.82%

Revenue growth 5Y38.95%

Sales Q2Q%29.55%

3.2 Future

HALO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.

Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 11.27% on average per year.

EPS Next Y24.79%

EPS Next 2Y26.9%

EPS Next 3Y24.66%

EPS Next 5Y16.06%

Revenue Next Year19.16%

Revenue Next 2Y21.57%

Revenue Next 3Y19.3%

Revenue Next 5Y11.27%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.76, the valuation of HALO can be described as correct.

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.01% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 28.33, HALO is valued rather cheaply.

The Price/Forward Earnings ratio is 11.03, which indicates a very decent valuation of HALO.

Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 96.48% of the companies in the same industry.

HALO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.37.

		Industry Rank	Sector Rank
PE	13.76
Fwd PE	11.03

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.13% of the companies listed in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.13% of the companies listed in the same industry.