HORIZON THERAPEUTICS PLC (HZNP) Stock Fundamental Analysis
NASDAQ:HZNP - Nasdaq - IE00BQPVQZ61 - Common Stock - Currency: USD
HZNP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 555 industry peers in the Biotechnology industry. HZNP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HZNP is not valued too expensively and it also shows a decent growth rate. These ratings could make HZNP a good candidate for quality investing.
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.
Of the past 5 years HZNP 4 years were profitable.
In the past 5 years HZNP always reported a positive cash flow from operatings.
1.2 Ratios
HZNP has a better Return On Assets (4.71%) than 95.21% of its industry peers.
With an excellent Return On Equity value of 8.25%, HZNP belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.35%, HZNP belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
HZNP had an Average Return On Invested Capital over the past 3 years of 6.68%. This is significantly below the industry average of 14.78%.
| 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.
HZNP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.58%, HZNP belongs to the top 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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HZNP is destroying value.
The number of shares outstanding for HZNP remains at a similar level compared to 1 year ago.
The debt/assets ratio for HZNP has been reduced compared to a year ago.
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.
The Altman-Z score of HZNP (5.10) is better 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.
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
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.
The Current ratio of HZNP (4.27) is comparable to the rest of the industry.
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's Quick ratio of 4.09 is in line compared 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 |
3. Growth
3.1 Past
The earnings per share for HZNP have decreased strongly by -19.39% in the last year.
The Earnings Per Share has been growing by 33.01% on average over the past years. This is a very strong growth
Looking at the last year, HZNP shows a decrease in Revenue. The Revenue has decreased by -4.42% in the last 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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HZNP is valuated quite expensively with a Price/Earnings ratio of 25.90.
95.54% of the companies in the same industry are more expensive than HZNP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, 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.
HZNP's Price/Forward Earnings ratio is rather cheap when compared to the industry. HZNP is cheaper than 96.53% of the companies in the same industry.
HZNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| 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 cheaper than 94.88% of the companies in the same industry.
96.37% of the companies in the same industry are more expensive than HZNP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.79 | ||
| EV/EBITDA | 27.94 |
4.3 Compensation for Growth
The excellent profitability rating of HZNP 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 |
116.3
+0.05 (+0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners0.58%
Ins Owner Change0%
Market Cap26.63B
Analysts50.91
Price Target118.83 (2.18%)
Short Float %N/A
Short RatioN/A
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)1
Avg EPS beat(2)-6.7%
Min EPS beat(2)-27.35%
Max EPS beat(2)13.95%
EPS beat(4)3
Avg EPS beat(4)4.23%
Min EPS beat(4)-27.35%
Max EPS beat(4)21.5%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-9.59%
Max Revenue beat(2)6.77%
Revenue beat(4)3
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)6.77%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.9 | ||
| Fwd PE | 20.14 | ||
| P/S | 7.31 | ||
| P/FCF | 27.79 | ||
| P/OCF | 25.59 | ||
| P/B | 5.01 | ||
| P/tB | 26.53 | ||
| EV/EBITDA | 27.94 |
EPS(TTM)4.49
EY3.86%
EPS(NY)5.77
Fwd EY4.97%
FCF(TTM)4.19
FCFY3.6%
OCF(TTM)4.54
OCFY3.91%
SpS15.92
BVpS23.19
TBVpS4.38
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.25% | ||
| ROCE | 6.77% | ||
| ROIC | 5.35% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 27.86% | ||
| OM | 15.58% | ||
| PM (TTM) | 12.02% | ||
| GM | 75.21% | ||
| FCFM | 26.3% |
ROA(3y)6.1%
ROA(5y)6.05%
ROE(3y)10.47%
ROE(5y)10.88%
ROIC(3y)6.68%
ROIC(5y)4.8%
ROICexc(3y)9.75%
ROICexc(5y)6.96%
ROICexgc(3y)39.54%
ROICexgc(5y)N/A
ROCE(3y)8.46%
ROCE(5y)6.07%
ROICexcg growth 3Y27.62%
ROICexcg growth 5YN/A
ROICexc growth 3Y33.99%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 21.15% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 4.07 | ||
| Cash Conversion | 108.78% | ||
| Profit Quality | 218.81% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.09 | ||
| Altman-Z | 5.1 |
F-Score6
WACC7.16%
ROIC/WACC0.75
Cap/Depr(3y)32.95%
Cap/Depr(5y)21.63%
Cap/Sales(3y)3.95%
Cap/Sales(5y)2.73%
Profit Quality(3y)169.09%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.39%
EPS 3Y34.76%
EPS 5Y33.01%
EPS Q2Q%12.15%
EPS Next Y-5.01%
EPS Next 2Y8.89%
EPS Next 3Y11.9%
EPS Next 5Y15.92%
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y40.8%
Revenue growth 5Y28%
Sales Q2Q%7.82%
Revenue Next Year5.55%
Revenue Next 2Y9.53%
Revenue Next 3Y10.34%
Revenue Next 5Y9.94%
EBIT growth 1Y-37.19%
EBIT growth 3Y74.4%
EBIT growth 5YN/A
EBIT Next Year6.03%
EBIT Next 3Y14.62%
EBIT Next 5Y17.3%
FCF growth 1Y83.52%
FCF growth 3Y42.98%
FCF growth 5Y33.65%
OCF growth 1Y72.19%
OCF growth 3Y43.43%
OCF growth 5Y34.64%