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. While HZNP has a great health rating, its profitability is only average at the moment. HZNP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HZNP was profitable.
- In the past year HZNP had a positive cash flow from operations.
1.2 Ratios
- The Return On Assets of HZNP (4.71%) is better than 95.21% of its industry peers.
- 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 better Return On Invested Capital (5.35%) than 95.87% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HZNP 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
- The Profit Margin of HZNP (12.02%) is better than 96.04% of its industry peers.
- In the last couple of years the Profit Margin of HZNP has declined.
- With an excellent Operating Margin value of 15.58%, HZNP belongs to the best of the industry, outperforming 96.53% of the companies in the same industry.
- In the last couple of years the Operating Margin of HZNP has grown nicely.
- The Gross Margin of HZNP (75.21%) is better than 84.49% of its industry peers.
- HZNP's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HZNP is destroying value.
- HZNP has about the same amout of shares outstanding than it did 1 year ago.
- 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 has a better Altman-Z score (5.10) than 81.35% of its industry peers.
- The Debt to FCF ratio of HZNP is 2.67, which is a good value as it means it would take HZNP, 2.67 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.67, HZNP belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.
- A Debt/Equity ratio of 0.48 indicates that HZNP is not too dependend on debt financing.
- The Debt to Equity ratio of HZNP (0.48) is worse than 74.92% of its industry peers.
| 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.
- HZNP has a Quick ratio (4.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.09 |
3. Growth
3.1 Past
- The earnings per share for HZNP have decreased strongly by -19.39% in the last year.
- Measured over the past years, HZNP shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.01% on average per year.
- The Revenue has decreased by -4.42% in the past year.
- HZNP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.00% yearly.
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
- The Earnings Per Share is expected to grow by 15.92% on average over the next years. This is quite good.
- 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- HZNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.14.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HZNP indicates a rather cheap valuation: HZNP is cheaper than 96.53% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HZNP to the average of the S&P500 Index (24.26), we can say HZNP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.9 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HZNP indicates a rather cheap valuation: HZNP is cheaper than 94.88% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HZNP is valued cheaply inside the industry as 96.37% of the companies are valued more expensively.
| 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
- HZNP does not give a dividend.
| 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.