116.3 USD
+0.05 (+0.04%)
116.34 USD
+0.04 (+0.03%)
Taking everything into account, HZNP scores 6 out of 10 in our fundamental rating. HZNP was compared to 525 industry peers in the Biotechnology industry. HZNP has an excellent financial health rating, but there are some minor concerns on its profitability. HZNP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- HZNP had positive earnings in the past year.
- In the past year HZNP had a positive cash flow from operations.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.71%, HZNP belongs to the top of the industry, outperforming 95.21% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.25%, HZNP belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
- HZNP has a Return On Invested Capital of 5.35%. This is amongst the best in the industry. HZNP outperforms 95.87% of its industry peers.
- HZNP had an Average Return On Invested Capital over the past 3 years of 6.68%. This is significantly below the industry average of 18.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.25% | ||
| ROIC | 5.35% |
ROA(3y)6.1%
ROA(5y)6.05%
ROE(3y)10.47%
ROE(5y)10.88%
ROIC(3y)6.68%
ROIC(5y)4.8%
1.3 Margins
- HZNP's Profit Margin of 12.02% is amongst the best of the industry. HZNP outperforms 96.04% of its industry peers.
- In the last couple of years the Profit Margin of HZNP has declined.
- HZNP has a better Operating Margin (15.58%) than 96.53% of its industry peers.
- In the last couple of years the Operating Margin of HZNP has grown nicely.
- With an excellent Gross Margin value of 75.21%, HZNP belongs to the best of the industry, outperforming 84.49% of the companies in the same industry.
- In the last couple of years the Gross Margin of HZNP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 12.02% | ||
| GM | 75.21% |
OM growth 3Y23.86%
OM growth 5YN/A
PM growth 3Y-31.18%
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y6.97%
2. Health
2.1 Basic Checks
- HZNP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, HZNP has about the same amount of shares outstanding.
- Compared to 1 year ago, HZNP has an improved debt to assets ratio.
2.2 Solvency
- HZNP has an Altman-Z score of 5.10. This indicates that HZNP is financially healthy and has little risk of bankruptcy at the moment.
- HZNP's Altman-Z score of 5.10 is amongst the best of the industry. HZNP outperforms 81.35% of its industry peers.
- HZNP has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as HZNP would need 2.67 years to pay back of all of its debts.
- HZNP's Debt to FCF ratio of 2.67 is amongst the best of the industry. HZNP outperforms 95.54% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that HZNP is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.48, HZNP is doing worse than 74.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 5.1 |
ROIC/WACC0.75
WACC7.16%
2.3 Liquidity
- HZNP has a Current Ratio of 4.27. This indicates that HZNP is financially healthy and has no problem in meeting its short term obligations.
- HZNP has a Current ratio (4.27) which is in line with its industry peers.
- HZNP has a Quick Ratio of 4.09. This indicates that HZNP is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 4.09, HZNP is in line with its industry, outperforming 40.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.09 |
3. Growth
3.1 Past
- HZNP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.39%.
- HZNP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.01% yearly.
- The Revenue has decreased by -4.42% in the past year.
- The Revenue has been growing by 28.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-19.39%
EPS 3Y34.76%
EPS 5Y33.01%
EPS Q2Q%12.15%
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y40.8%
Revenue growth 5Y28%
Sales Q2Q%7.82%
3.2 Future
- Based on estimates for the next years, HZNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.92% on average per year.
- Based on estimates for the next years, HZNP will show a quite strong growth in Revenue. The Revenue will grow by 9.94% on average per year.
EPS Next Y-5.01%
EPS Next 2Y8.89%
EPS Next 3Y11.9%
EPS Next 5Y15.92%
Revenue Next Year5.55%
Revenue Next 2Y9.53%
Revenue Next 3Y10.34%
Revenue Next 5Y9.94%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.90 indicates a quite expensive valuation of HZNP.
- Based on the Price/Earnings ratio, HZNP is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
- HZNP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- HZNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.14.
- Based on the Price/Forward Earnings ratio, HZNP is valued cheaply inside the industry as 96.53% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HZNP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.9 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HZNP is valued cheaply inside the industry as 94.88% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HZNP indicates a rather cheap valuation: HZNP is cheaper than 96.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.79 | ||
| EV/EBITDA | 27.94 |
4.3 Compensation for Growth
- HZNP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y8.89%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
- No dividends for HZNP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HORIZON THERAPEUTICS PLC / HZNP FAQ
What is the fundamental rating for HZNP stock?
ChartMill assigns a fundamental rating of 6 / 10 to HZNP.
What is the valuation status for HZNP stock?
ChartMill assigns a valuation rating of 5 / 10 to HORIZON THERAPEUTICS PLC (HZNP). This can be considered as Fairly Valued.
How profitable is HORIZON THERAPEUTICS PLC (HZNP) stock?
HORIZON THERAPEUTICS PLC (HZNP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HORIZON THERAPEUTICS PLC (HZNP) stock?
The Price/Earnings (PE) ratio for HORIZON THERAPEUTICS PLC (HZNP) is 25.9 and the Price/Book (PB) ratio is 5.01.