Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


HALOZYME THERAPEUTICS INC

Nasdaq / Health Care / Biotechnology

Fundamental Rating

8

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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HALO is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, HALO could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year HALO was profitable.
HALO had a positive operating cash flow in the past year.
In the past 5 years HALO has always been profitable.
Each year in the past 5 years HALO had a positive operating cash flow.
HALO Yearly Net Income VS EBIT VS OCF VS FCFHALO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

1.2 Ratios

The Return On Assets of HALO (21.52%) is better than 98.94% of its industry peers.
HALO's Return On Equity of 122.06% is amongst the best of the industry. HALO outperforms 99.47% of its industry peers.
The Return On Invested Capital of HALO (23.00%) is better than 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 3 year average ROIC (17.81%) for HALO is below the current ROIC(23.00%), indicating increased profibility in the last year.
Industry RankSector 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%
HALO Yearly ROA, ROE, ROICHALO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

HALO has a better Profit Margin (43.74%) than 99.12% of its industry peers.
In the last couple of years the Profit Margin of HALO has declined.
The Operating Margin of HALO (54.32%) is better than 99.82% of its industry peers.
HALO's Operating Margin has declined in the last couple of years.
HALO's Gross Margin of 84.30% is amongst the best of the industry. HALO outperforms 86.97% of its industry peers.
In the last couple of years the Gross Margin of HALO has grown nicely.
Industry RankSector 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%
HALO Yearly Profit, Operating, Gross MarginsHALO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

8

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.
Compared to 1 year ago, HALO has less shares outstanding
Compared to 5 years ago, HALO has less shares outstanding
Compared to 1 year ago, HALO has an improved debt to assets ratio.
HALO Yearly Shares OutstandingHALO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
HALO Yearly Total Debt VS Total AssetsHALO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 4.67 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO has a better Altman-Z score (4.67) than 81.16% of its industry peers.
The Debt to FCF ratio of HALO is 3.21, which is a good value as it means it would take HALO, 3.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HALO (3.21) is better than 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's Debt to Equity ratio of 4.14 is on the low side compared to the rest of the industry. HALO is outperformed by 83.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.14
Debt/FCF 3.21
Altman-Z 4.67
ROIC/WACC2.46
WACC9.34%
HALO Yearly LT Debt VS Equity VS FCFHALO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 7.80 indicates that HALO has no problem at all paying its short term obligations.
HALO's Current ratio of 7.80 is fine compared to the rest of the industry. HALO outperforms 73.42% of its industry peers.
HALO has a Quick Ratio of 6.78. This indicates that HALO is financially healthy and has no problem in meeting 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 RankSector Rank
Current Ratio 7.8
Quick Ratio 6.78
HALO Yearly Current Assets VS Current LiabilitesHALO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

8

3. Growth

3.1 Past

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.16%, which is quite impressive.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.12% yearly.
The Revenue has grown by 22.46% in the past year. This is a very strong growth!
The Revenue has been growing by 38.95% on average over the past years. This is a very strong growth!
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

The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.27% on average over the next years. This is quite good.
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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
HALO Yearly Revenue VS EstimatesHALO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B
HALO Yearly EPS VS EstimatesHALO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6 8

9

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.73 indicates a correct valuation of HALO.
HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 97.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (27.63), we can say HALO is valued rather cheaply.
The Price/Forward Earnings ratio is 11.00, which indicates a very decent valuation of HALO.
96.48% of the companies in the same industry are more expensive than HALO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (20.85), we can say HALO is valued slightly cheaper.
Industry RankSector Rank
PE 13.73
Fwd PE 11
HALO Price Earnings VS Forward Price EarningsHALO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

96.13% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 96.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.32
EV/EBITDA 11.86
HALO Per share dataHALO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

HALO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HALO has an outstanding profitability rating, which may justify a higher PE ratio.
HALO's earnings are expected to grow with 24.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y26.9%
EPS Next 3Y24.66%

0

5. Dividend

5.1 Amount

HALO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A