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For those who appreciate value investing, NASDAQ:HALO is a compelling option with its solid fundamentals.

By Mill Chart

Last update: Dec 8, 2023

Uncover the hidden value in HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as our stock screening tool recommends it as an undervalued choice. NASDAQ:HALO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Evaluating Valuation: NASDAQ:HALO

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:HALO was assigned a score of 8 for valuation:

  • Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.18% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 24.90. HALO is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 10.64, the valuation of HALO can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.50% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 19.99, HALO is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 95.35% 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 97.67% of the companies in the same industry.
  • HALO's 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.
  • A more expensive valuation may be justified as HALO's earnings are expected to grow with 25.48% in the coming years.

Profitability Assessment of NASDAQ:HALO

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:HALO, the assigned 8 is a significant indicator of profitability:

  • HALO has a better Return On Assets (13.41%) than 98.50% of its industry peers.
  • Looking at the Return On Equity, with a value of 101.89%, HALO belongs to the top of the industry, outperforming 99.83% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 14.39%, HALO belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for HALO is significantly above the industry average of 12.73%.
  • The last Return On Invested Capital (14.39%) for HALO is well below the 3 year average (36.78%), which needs to be investigated, but indicates that HALO had better years and this may not be a problem.
  • HALO's Profit Margin of 32.53% is amongst the best of the industry. HALO outperforms 98.50% of its industry peers.
  • HALO's Profit Margin has improved in the last couple of years.
  • HALO's Operating Margin of 40.35% is amongst the best of the industry. HALO outperforms 98.84% of its industry peers.
  • HALO's Operating Margin has improved in the last couple of years.
  • HALO has a better Gross Margin (76.68%) than 85.55% of its industry peers.

How do we evaluate the Health for NASDAQ:HALO?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 7 out of 10:

  • HALO has an Altman-Z score of 3.55. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of HALO (3.55) is better than 76.25% of its industry peers.
  • HALO has a Debt to FCF ratio of 4.24. This is amongst the best in the industry. HALO outperforms 94.68% of its industry peers.
  • A Current Ratio of 7.63 indicates that HALO has no problem at all paying its short term obligations.
  • HALO has a Current ratio of 7.63. This is in the better half of the industry: HALO outperforms 67.94% of its industry peers.
  • A Quick Ratio of 6.51 indicates that HALO has no problem at all paying its short term obligations.
  • HALO has a better Quick ratio (6.51) than 62.29% of its industry peers.

A Closer Look at Growth for NASDAQ:HALO

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:HALO scores a 8 out of 10:

  • 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 34.42%.
  • Measured over the past years, HALO shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
  • The Earnings Per Share is expected to grow by 24.80% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 18.14% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of HALO contains the most current fundamental analsysis.

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.

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HALOZYME THERAPEUTICS INC

NASDAQ:HALO (4/26/2024, 7:00:02 PM)

After market: 38.88 +0.31 (+0.8%)

38.57

+0.11 (+0.29%)

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