HALOZYME THERAPEUTICS INC (HALO)
US40637H1095 - Common Stock
HALO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 565 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. An interesting combination arises when we look at growth and value: HALO is growing strongly while it also seems undervalued. These ratings would make HALO suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HALO was profitable.
HALO had a positive operating cash flow in the past year.
Of the past 5 years HALO 4 years were profitable.
HALO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HALO has a Return On Assets of 18.53%. This is amongst the best in the industry. HALO outperforms 98.40% of its industry peers.
With an excellent Return On Equity value of 86.69%, HALO belongs to the best of the industry, outperforming 99.64% of the companies in the same industry.
HALO's Return On Invested Capital of 19.23% is amongst the best of the industry. HALO outperforms 97.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 15.31%.
The 3 year average ROIC (17.78%) for HALO is below the current ROIC(19.23%), indicating increased profibility in the last year.
| 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 98.93% 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 99.82% of its industry peers.
HALO's Operating Margin has declined in the last couple of years.
HALO's Gross Margin of 82.09% is amongst the best of the industry. HALO outperforms 86.99% of its industry peers.
HALO's Gross Margin has declined in the last couple of years.
| 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%
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.
The number of shares outstanding for HALO has been reduced compared to 5 years ago.
Compared to 1 year ago, HALO has a worse debt to assets ratio.
2.2 Solvency
HALO has an Altman-Z score of 4.13. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO has a better Altman-Z score (4.13) than 78.25% of its industry peers.
The Debt to FCF ratio of HALO is 3.83, which is a good value as it means it would take HALO, 3.83 years of fcf income to pay off all of its debts.
HALO's Debt to FCF ratio of 3.83 is amongst the best of the industry. HALO outperforms 94.12% of its industry peers.
A Debt/Equity ratio of 3.32 is on the high side and indicates that HALO has dependencies on debt financing.
HALO has a worse Debt to Equity ratio (3.32) than 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 4.13 |
ROIC/WACC2.05
WACC9.4%
2.3 Liquidity
A Current Ratio of 10.36 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 10.36, HALO belongs to the top of the industry, outperforming 82.17% 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.
Looking at the Quick ratio, with a value of 9.15, HALO is in the better half of the industry, outperforming 78.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.36 | ||
| Quick Ratio | 9.15 |
3. Growth
3.1 Past
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.
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%.
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.
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
The Earnings Per Share is expected to grow by 25.47% 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 15.95% on average per year.
EPS Next Y52.39%
EPS Next 2Y33.21%
EPS Next 3Y32.04%
EPS Next 5Y25.47%
Revenue Next Year20.74%
Revenue Next 2Y17.91%
Revenue Next 3Y19.06%
Revenue Next 5Y15.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.06, 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 97.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, HALO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.26, the valuation of HALO can be described as reasonable.
98.04% 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 (23.82), we can say HALO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.97% of the companies 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 97.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.81 | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
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 32.04% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y33.21%
EPS Next 3Y32.04%
5. Dividend
5.1 Amount
HALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HALOZYME THERAPEUTICS INC
NASDAQ:HALO (11/21/2024, 8:00:01 PM)
After market: 46.15 +0.45 (+0.98%)45.7
-0.06 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap5.81B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 9.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.53% | ||
| ROE | 86.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 50.35% | ||
| PM (TTM) | 41.43% | ||
| GM | 82.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 10.36 | ||
| Quick Ratio | 9.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)55.33%
EPS 3Y45.64%
EPS 5Y
EPS Q2Q%
EPS Next Y52.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.36%
Revenue growth 3Y45.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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