Stock Analysis: Decent Value Stocks

Fundamental Rating

Overall HALO gets a fundamental rating of 7 out of 10. We evaluated HALO against 572 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 evaluated to be cheap and growing strongly. This does not happen too often! This makes HALO very considerable 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.

HALO had positive earnings in 4 of the past 5 years.

Of the past 5 years HALO 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 18.53%, HALO belongs to the top of the industry, outperforming 98.58% of the companies in the same industry.

Looking at the Return On Equity, with a value of 86.69%, HALO belongs to the top of the industry, outperforming 99.65% of the companies in the same industry.

HALO has a Return On Invested Capital of 19.23%. This is amongst the best in the industry. HALO outperforms 98.05% of its industry peers.

HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 13.83%.

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.

		Industry Rank	Sector Rank
ROA	18.53%
ROE	86.69%
ROIC	19.23%

ROA(3y)21.23%

ROA(5y)14.64%

ROE(3y)219.81%

ROE(5y)133.26%

ROIC(3y)17.78%

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 41.43%, HALO belongs to the best of the industry, outperforming 98.76% of the companies in the same industry.

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

The Operating Margin of HALO (50.35%) is better than 100.00% of its industry peers.

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

HALO has a better Gross Margin (82.09%) than 87.26% of its industry peers.

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

		Industry Rank	Sector Rank
OM	50.35%
PM (TTM)	41.43%
GM	82.09%

OM growth 3Y-8.72%

OM growth 5YN/A

PM growth 3Y-11.05%

PM growth 5YN/A

GM growth 3Y-2.86%

GM growth 5Y-3.81%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HALO is creating value.

The number of shares outstanding for HALO has been reduced compared to 1 year ago.

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

The debt/assets ratio for HALO is higher compared to a year ago.

2.2 Solvency

HALO has an Altman-Z score of 4.51. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.

With a decent Altman-Z score value of 4.51, HALO is doing good in the industry, outperforming 80.00% 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.

Looking at the Debt to FCF ratio, with a value of 3.83, HALO belongs to the top of the industry, outperforming 94.16% of the companies in the same industry.

A Debt/Equity ratio of 3.32 is on the high side and indicates that HALO has dependencies on debt financing.

HALO has a Debt to Equity ratio of 3.32. This is amonst the worse of the industry: HALO underperforms 83.54% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.32
Debt/FCF	3.83
Altman-Z	4.51

ROIC/WACC1.94

WACC9.92%

2.3 Liquidity

A Current Ratio of 10.36 indicates that HALO has no problem at all paying its short term obligations.

The Current ratio of HALO (10.36) is better than 81.77% of its industry peers.

HALO has a Quick Ratio of 9.15. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

HALO's Quick ratio of 9.15 is fine compared to the rest of the industry. HALO outperforms 77.52% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	10.36
Quick Ratio	9.15

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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 55.33% over the past year.

HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.

Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 21.36%.

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

EPS 1Y (TTM)55.33%

EPS 3Y45.64%

EPS 5YN/A

EPS Q2Q%69.33%

Revenue 1Y (TTM)21.36%

Revenue growth 3Y45.79%

Revenue growth 5Y40.42%

Sales Q2Q%34.28%

3.2 Future

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.

EPS Next Y52.12%

EPS Next 2Y33.81%

EPS Next 3Y32.4%

EPS Next 5Y25.94%

Revenue Next Year20.5%

Revenue Next 2Y17.96%

Revenue Next 3Y19.17%

Revenue Next 5Y16.59%

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

With a Price/Earnings ratio of 14.28, HALO is valued correctly.

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.81% of the companies listed in the same industry.

HALO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.10.

The Price/Forward Earnings ratio is 10.88, which indicates a very decent valuation of HALO.

Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.70% of the companies listed in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 23.41, HALO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.28
Fwd PE	10.88

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 96.81% of the companies listed in the same industry.

Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 96.99% of the companies in the same industry.