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Don't overlook NASDAQ:HALO—a stock with solid growth prospects and a reasonable valuation.

By Mill Chart

Last update: Mar 11, 2024

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) was identified as an affordable growth stock by our stock screener. NASDAQ:HALO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Analysis for NASDAQ:HALO

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 9 reflects its growth potential:

  • The Earnings Per Share has grown by an impressive 25.23% over the past year.
  • Measured over the past years, HALO shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.64% on average per year.
  • The Revenue has grown by 25.59% in the past year. This is a very strong growth!
  • Measured over the past years, HALO shows a very strong growth in Revenue. The Revenue has been growing by 40.42% on average per year.
  • Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 20.73% on average per year.
  • HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.91% yearly.

Evaluating Valuation: NASDAQ:HALO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:HALO has received a 9 out of 10:

  • Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.81% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.97, HALO is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 11.10, which indicates a very decent valuation of HALO.
  • Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.48% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.31, HALO is valued rather cheaply.
  • Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.63% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.15% of the companies are valued more expensively.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • HALO has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as HALO's earnings are expected to grow with 30.61% in the coming years.

Understanding NASDAQ:HALO's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has received a 7 out of 10:

  • HALO has an Altman-Z score of 3.56. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of HALO (3.56) is better than 72.90% of its industry peers.
  • The Debt to FCF ratio of HALO (4.02) is better than 94.78% of its industry peers.
  • HALO has a Current Ratio of 6.64. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
  • HALO has a Current ratio of 6.64. This is in the better half of the industry: HALO outperforms 63.30% of its industry peers.
  • HALO has a Quick Ratio of 5.50. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NASDAQ:HALO

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 7 for profitability:

  • HALO has a Return On Assets of 16.25%. This is amongst the best in the industry. HALO outperforms 98.82% of its industry peers.
  • HALO has a Return On Equity of 335.99%. This is amongst the best in the industry. HALO outperforms 100.00% of its industry peers.
  • HALO's Return On Invested Capital of 17.00% is amongst the best of the industry. HALO outperforms 98.65% of its industry peers.
  • HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 13.48%.
  • HALO has a Profit Margin of 33.96%. This is amongst the best in the industry. HALO outperforms 98.82% of its industry peers.
  • HALO has a Operating Margin of 41.02%. This is amongst the best in the industry. HALO outperforms 99.16% of its industry peers.
  • HALO has a better Gross Margin (76.82%) than 85.69% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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HALOZYME THERAPEUTICS INC

NASDAQ:HALO (5/29/2024, 7:08:09 PM)

After market: 41.8 -0.96 (-2.25%)

42.76

-0.32 (-0.74%)

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