HALOZYME THERAPEUTICS INC (HALO)
US40637H1095 - Common Stock
We assign a fundamental rating of 7 out of 10 to HALO. HALO was compared to 564 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! 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.
Of the past 5 years HALO 4 years were profitable.
Of the past 5 years HALO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HALO (18.53%) is better than 98.57% of its industry peers.
The Return On Equity of HALO (86.69%) is better than 99.64% of its industry peers.
HALO's Return On Invested Capital of 19.23% is amongst the best of the industry. HALO outperforms 98.04% 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
HALO's Profit Margin of 41.43% is amongst the best of the industry. HALO outperforms 98.75% of its industry peers.
In the last couple of years the Profit Margin of HALO has declined.
HALO has a Operating Margin of 50.35%. This is amongst the best in the industry. HALO outperforms 100.00% of its industry peers.
HALO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 82.09%, HALO belongs to the top of the industry, outperforming 87.17% of the companies in the same industry.
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
An Altman-Z score of 4.24 indicates that HALO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.24, HALO is doing good in the industry, outperforming 77.72% 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.
With an excellent Debt to FCF ratio value of 3.83, HALO belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
HALO has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
HALO's Debt to Equity ratio of 3.32 is on the low side compared to the rest of the industry. HALO is outperformed by 82.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 4.24 |
ROIC/WACC2
WACC9.6%
2.3 Liquidity
HALO has a Current Ratio of 10.36. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HALO (10.36) is better than 82.35% of its industry peers.
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 78.25% 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.
HALO shows a strong growth in Revenue. In the last year, 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
Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 25.94% on average per year.
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.
EPS Next Y52.12%
EPS Next 2Y33.81%
EPS Next 3Y32.4%
EPS Next 5Y25.94%
Revenue Next Year20.74%
Revenue Next 2Y18.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.66 indicates a correct valuation of HALO.
Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.18, HALO is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.64, the valuation of HALO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 97.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.59, HALO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 9.64 |
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 96.97% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 96.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.55 | ||
| EV/EBITDA | 11.55 |
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.
The decent profitability rating of HALO 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.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y33.81%
EPS Next 3Y32.4%
5. Dividend
5.1 Amount
No dividends for HALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HALOZYME THERAPEUTICS INC
NASDAQ:HALO (12/30/2024, 8:19:46 PM)
After market: 47.99 0 (0%)47.99
-0.14 (-0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners99.18%
Inst Owner Change1.74%
Ins Owners0.97%
Ins Owner Change-0.24%
Market Cap6.11B
Analysts75
Price Target65.41 (36.3%)
Short Float %6.81%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.23%
Min EPS beat(2)17.68%
Max EPS beat(2)26.79%
EPS beat(4)3
Avg EPS beat(4)13.34%
Min EPS beat(4)-2.55%
Max EPS beat(4)26.79%
EPS beat(8)6
Avg EPS beat(8)8.78%
EPS beat(12)9
Avg EPS beat(12)9.22%
EPS beat(16)12
Avg EPS beat(16)11.41%
Revenue beat(2)2
Avg Revenue beat(2)11.98%
Min Revenue beat(2)10.67%
Max Revenue beat(2)13.28%
Revenue beat(4)2
Avg Revenue beat(4)4.41%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)13.28%
Revenue beat(8)3
Avg Revenue beat(8)0.91%
Revenue beat(12)5
Avg Revenue beat(12)0.96%
Revenue beat(16)8
Avg Revenue beat(16)3.1%
PT rev (1m)2.69%
PT rev (3m)4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)4.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 9.64 | ||
| P/S | 6.45 | ||
| P/FCF | 15.55 | ||
| P/OCF | 15.15 | ||
| P/B | 13.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.55 |
EPS(TTM)3.79
EY7.9%
EPS(NY)4.98
Fwd EY10.37%
FCF(TTM)3.09
FCFY6.43%
OCF(TTM)3.17
OCFY6.6%
SpS7.45
BVpS3.56
TBVpS-3.02
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.53% | ||
| ROE | 86.69% | ||
| ROCE | 23.74% | ||
| ROIC | 19.23% | ||
| ROICexc | 28.78% | ||
| ROICexgc | 76.3% | ||
| OM | 50.35% | ||
| PM (TTM) | 41.43% | ||
| GM | 82.09% | ||
| FCFM | 41.46% |
ROA(3y)21.23%
ROA(5y)14.64%
ROE(3y)219.81%
ROE(5y)133.26%
ROIC(3y)17.78%
ROIC(5y)N/A
ROICexc(3y)43.19%
ROICexc(5y)N/A
ROICexgc(3y)73.41%
ROICexgc(5y)N/A
ROCE(3y)21.95%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score9
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 3.83 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 12.55% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.14% | ||
| Profit Quality | 100.07% | ||
| Current Ratio | 10.36 | ||
| Quick Ratio | 9.15 | ||
| Altman-Z | 4.24 |
F-Score9
WACC9.6%
ROIC/WACC2
Cap/Depr(3y)25.9%
Cap/Depr(5y)50.2%
Cap/Sales(3y)0.97%
Cap/Sales(5y)1.18%
Profit Quality(3y)107.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)55.33%
EPS 3Y45.64%
EPS 5YN/A
EPS Q2Q%69.33%
EPS Next Y52.12%
EPS Next 2Y33.81%
EPS Next 3Y32.4%
EPS Next 5Y25.94%
Revenue 1Y (TTM)21.36%
Revenue growth 3Y45.79%
Revenue growth 5Y40.42%
Sales Q2Q%34.28%
Revenue Next Year20.74%
Revenue Next 2Y18.01%
Revenue Next 3Y19.17%
Revenue Next 5Y16.59%
EBIT growth 1Y51.43%
EBIT growth 3Y33.08%
EBIT growth 5YN/A
EBIT Next Year56.76%
EBIT Next 3Y40.06%
EBIT Next 5Y27.27%
FCF growth 1Y65.36%
FCF growth 3Y91.68%
FCF growth 5YN/A
OCF growth 1Y67.76%
OCF growth 3Y91.3%
OCF growth 5YN/A