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 correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year HZNP was profitable.
HZNP had a positive operating cash flow in the past year.

1.2 Ratios

HZNP's Return On Assets of 4.71% is amongst the best of the industry. HZNP outperforms 95.21% of its industry peers.
HZNP's Return On Equity of 8.25% is amongst the best of the industry. HZNP outperforms 95.38% of its industry peers.
HZNP's Return On Invested Capital of 5.35% is amongst the best of the industry. HZNP outperforms 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

HZNP has a better Profit Margin (12.02%) than 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.
HZNP's Operating Margin has improved in the last couple of years.
HZNP has a Gross Margin of 75.21%. This is amongst the best in the industry. HZNP outperforms 84.49% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
HZNP has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 5.10 indicates that HZNP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.10, HZNP belongs to the best of the industry, outperforming 81.35% of the companies in the same industry.
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.
HZNP has a better Debt to FCF ratio (2.67) than 95.54% of its industry peers.
HZNP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
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

A Current Ratio of 4.27 indicates that HZNP has no problem at all paying its short term obligations.
With a Current ratio value of 4.27, HZNP perfoms like the industry average, outperforming 41.58% of the companies in the same industry.
A Quick Ratio of 4.09 indicates that HZNP has no problem at all paying its short term obligations.
HZNP has a Quick ratio of 4.09. This is comparable to the rest of the industry: HZNP outperforms 40.92% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.27
Quick Ratio	4.09

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WACC

Debt/Equity

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Altman-Z score

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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.
Looking at the last year, HZNP shows a decrease in Revenue. The Revenue has decreased by -4.42% in the last year.
Measured over the past years, HZNP shows a very strong growth in Revenue. The Revenue has been growing by 28.00% on average per year.

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

HZNP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.92% yearly.
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

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.90, the valuation of HZNP can be described as expensive.
Based on the Price/Earnings ratio, HZNP is valued cheaper than 95.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, HZNP is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.14, the valuation of HZNP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HZNP is valued cheaply inside the industry as 96.53% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.98. HZNP is valued slightly cheaper when compared to this.

		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.
Based on the Price/Free Cash Flow ratio, HZNP is valued cheaper than 96.37% of the companies in the same industry.