NASDAQ:HALO, an undervalued stock with good fundamentals.

Take a closer look at HALOZYME THERAPEUTICS INC (NASDAQ:HALO), a remarkable value stock uncovered by our stock screener. NASDAQ:HALO excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Assessment of NASDAQ:HALO

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:HALO has earned a 8 for valuation:

• HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 96.52% of the companies in the same industry.
• HALO is valuated rather cheaply when we compare the Price/Earnings ratio to 24.68, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 10.68, the valuation of HALO can be described as very reasonable.
• HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 98.67% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 19.34. HALO is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 95.36% of the companies in the same industry.
• HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 97.68% of the companies in the same industry.
• The 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 25.48% in the coming years. This may justify a more expensive valuation.

Understanding NASDAQ:HALO's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:HALO was assigned a score of 8 for profitability:

• Looking at the Return On Assets, with a value of 13.42%, HALO belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
• HALO has a Return On Equity of 101.90%. This is amongst the best in the industry. HALO outperforms 99.83% of its industry peers.
• HALO has a Return On Invested Capital of 14.39%. This is amongst the best in the industry. HALO outperforms 98.01% of its industry peers.
• HALO had an Average Return On Invested Capital over the past 3 years of 36.79%. This is significantly above the industry average of 13.35%.
• The 3 year average ROIC (36.79%) for HALO is well above the current ROIC(14.39%). The reason for the recent decline needs to be investigated.
• HALO has a Profit Margin of 32.52%. This is amongst the best in the industry. HALO outperforms 98.34% of its industry peers.
• HALO's Profit Margin has improved in the last couple of years.
• HALO has a Operating Margin of 40.34%. This is amongst the best in the industry. HALO outperforms 98.67% of its industry peers.
• In the last couple of years the Operating Margin of HALO has grown nicely.
• With an excellent Gross Margin value of 76.66%, HALO belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.

Health Analysis for NASDAQ:HALO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has achieved a 7 out of 10:

• An Altman-Z score of 3.55 indicates that HALO is not in any danger for bankruptcy at the moment.
• HALO has a better Altman-Z score (3.55) than 78.11% of its industry peers.
• With an excellent Debt to FCF ratio value of 4.24, HALO belongs to the best of the industry, outperforming 95.02% of the companies in the same industry.
• HALO has a Current Ratio of 7.63. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 7.63, HALO is in the better half of the industry, outperforming 64.51% of the companies in the same industry.
• HALO has a Quick Ratio of 6.51. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:HALO's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:HALO, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an nice 12.96% over the past year.
• HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.34% yearly.
• Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 34.46%.
• HALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
• Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.80% on average per year.
• HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.14% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of HALO for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.