HALOZYME THERAPEUTICS INC (HALO) Stock Fundamental Analysis
NASDAQ:HALO - Nasdaq - US40637H1095 - Common Stock - Currency: USD
HALO gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 571 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making HALO a very profitable company, without any liquidiy or solvency issues. An interesting combination arises when we look at growth and value: HALO is growing strongly while it also seems undervalued. These ratings could make HALO a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year HALO was profitable.
In the past year HALO had a positive cash flow from operations.
HALO had positive earnings in each of the past 5 years.
In the past 5 years HALO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HALO (21.52%) is better than 98.95% of its industry peers.
With an excellent Return On Equity value of 122.06%, HALO belongs to the best of the industry, outperforming 99.65% of the companies in the same industry.
HALO's Return On Invested Capital of 23.00% is amongst the best of the industry. HALO outperforms 98.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 14.39%.
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
With an excellent Profit Margin value of 43.74%, HALO belongs to the best of the industry, outperforming 98.95% of the companies in the same industry.
In the last couple of years the Profit Margin of HALO has declined.
With an excellent Operating Margin value of 54.32%, HALO belongs to the best of the industry, outperforming 99.82% of the companies in the same industry.
In the last couple of years the Operating Margin of HALO has declined.
With an excellent Gross Margin value of 84.30%, HALO belongs to the best of the industry, outperforming 88.27% of the companies in the same industry.
HALO's Gross Margin has improved in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HALO is creating value.
HALO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HALO has been reduced compared to 5 years ago.
The debt/assets ratio for HALO has been reduced compared to a year ago.
2.2 Solvency
HALO has an Altman-Z score of 4.84. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO's Altman-Z score of 4.84 is amongst the best of the industry. HALO outperforms 80.56% 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.
Looking at the Debt to FCF ratio, with a value of 3.21, HALO belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
A Debt/Equity ratio of 4.14 is on the high side and indicates that HALO has dependencies on debt financing.
With a Debt to Equity ratio value of 4.14, HALO is not doing good in the industry: 83.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.74
WACC8.39%
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 better Current ratio (7.80) than 73.03% of its industry peers.
A Quick Ratio of 6.78 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.78, HALO is in the better half of the industry, outperforming 67.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.8 | ||
| Quick Ratio | 6.78 |
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.
HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.46%.
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
HALO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.58% yearly.
The Revenue is expected to grow by 10.99% on average over the next years. This is quite good.
EPS Next Y18.18%
EPS Next 2Y24.89%
EPS Next 3Y23.98%
EPS Next 5Y15.58%
Revenue Next Year18.48%
Revenue Next 2Y20.77%
Revenue Next 3Y18.12%
Revenue Next 5Y10.99%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.07, which indicates a correct valuation of HALO.
Based on the Price/Earnings ratio, HALO is valued cheaper than 96.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (29.71), we can say HALO is valued rather cheaply.
HALO is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
96.85% of the companies in the same industry are more expensive than HALO, based on the Price/Forward Earnings ratio.
HALO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| EV/EBITDA | 12.65 |
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 excellent profitability rating of HALO may justify a higher PE ratio.
HALO's earnings are expected to grow with 23.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y24.89%
EPS Next 3Y23.98%
5. Dividend
5.1 Amount
No dividends for HALO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.53
+1.39 (+2.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners99.23%
Inst Owner Change0.82%
Ins Owners0.81%
Ins Owner Change0.82%
Market Cap7.57B
Analysts76
Price Target66.3 (11.37%)
Short Float %7.32%
Short Ratio6.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)16.72%
Min EPS beat(2)6.64%
Max EPS beat(2)26.79%
EPS beat(4)4
Avg EPS beat(4)15.64%
Min EPS beat(4)6.64%
Max EPS beat(4)26.79%
EPS beat(8)6
Avg EPS beat(8)9.48%
EPS beat(12)9
Avg EPS beat(12)9.66%
EPS beat(16)13
Avg EPS beat(16)12.34%
Revenue beat(2)2
Avg Revenue beat(2)7.32%
Min Revenue beat(2)1.36%
Max Revenue beat(2)13.28%
Revenue beat(4)3
Avg Revenue beat(4)5.36%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)13.28%
Revenue beat(8)4
Avg Revenue beat(8)2%
Revenue beat(12)6
Avg Revenue beat(12)1.1%
Revenue beat(16)9
Avg Revenue beat(16)3.23%
PT rev (1m)0.39%
PT rev (3m)4.09%
EPS NQ rev (1m)-5.03%
EPS NQ rev (3m)-11.22%
EPS NY rev (1m)-2.97%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-1.37%
Revenue NQ rev (3m)-11.01%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 11.91 | ||
| P/S | 7.46 | ||
| P/FCF | 16.17 | ||
| P/OCF | 15.81 | ||
| P/B | 20.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.65 |
EPS(TTM)4.23
EY7.11%
EPS(NY)5
Fwd EY8.4%
FCF(TTM)3.68
FCFY6.18%
OCF(TTM)3.77
OCFY6.33%
SpS7.98
BVpS2.86
TBVpS-3.57
PEG (NY)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.52% | ||
| ROE | 122.06% | ||
| ROCE | 28.66% | ||
| ROIC | 23% | ||
| ROICexc | 33.33% | ||
| ROICexgc | 86.86% | ||
| OM | 54.32% | ||
| PM (TTM) | 43.74% | ||
| GM | 84.3% | ||
| FCFM | 46.13% |
ROA(3y)16.25%
ROA(5y)21.49%
ROE(3y)192.36%
ROE(5y)173.4%
ROIC(3y)17.81%
ROIC(5y)29.79%
ROICexc(3y)23.94%
ROICexc(5y)N/A
ROICexgc(3y)71.73%
ROICexgc(5y)N/A
ROCE(3y)22.19%
ROCE(5y)37.11%
ROICexcg growth 3Y-1.13%
ROICexcg growth 5YN/A
ROICexc growth 3Y-28.16%
ROICexc growth 5YN/A
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%
F-Score9
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 13.15% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 52.2 | ||
| Cash Conversion | 75.71% | ||
| Profit Quality | 105.47% | ||
| Current Ratio | 7.8 | ||
| Quick Ratio | 6.78 | ||
| Altman-Z | 4.84 |
F-Score9
WACC8.39%
ROIC/WACC2.74
Cap/Depr(3y)13.62%
Cap/Depr(5y)33.32%
Cap/Sales(3y)1.21%
Cap/Sales(5y)0.98%
Profit Quality(3y)118.15%
Profit Quality(5y)93.9%
High Growth Momentum
Growth
EPS 1Y (TTM)52.16%
EPS 3Y30.12%
EPS 5YN/A
EPS Q2Q%53.66%
EPS Next Y18.18%
EPS Next 2Y24.89%
EPS Next 3Y23.98%
EPS Next 5Y15.58%
Revenue 1Y (TTM)22.46%
Revenue growth 3Y31.82%
Revenue growth 5Y38.95%
Sales Q2Q%29.55%
Revenue Next Year18.48%
Revenue Next 2Y20.77%
Revenue Next 3Y18.12%
Revenue Next 5Y10.99%
EBIT growth 1Y62.13%
EBIT growth 3Y25.97%
EBIT growth 5YN/A
EBIT Next Year42.8%
EBIT Next 3Y26%
EBIT Next 5Y15.57%
FCF growth 1Y25.47%
FCF growth 3Y16.28%
FCF growth 5YN/A
OCF growth 1Y23.29%
OCF growth 3Y16.96%
OCF growth 5YN/A