HALOZYME THERAPEUTICS INC (NASDAQ:HALO) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screening tool has pinpointed HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as an undervalued stock. NASDAQ:HALO maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding NASDAQ:HALO's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:HALO has achieved a 8 out of 10:

• HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 96.85% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.93, HALO is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 96.85% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (21.69), we can say HALO is valued slightly cheaper.
• HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 96.33% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 96.85% of the companies are valued more expensively.
• 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.
• HALO's earnings are expected to grow with 23.98% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NASDAQ:HALO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HALO has achieved a 8:

• HALO has a Return On Assets of 21.52%. This is amongst the best in the industry. HALO outperforms 98.95% of its industry peers.
• HALO has a Return On Equity of 122.06%. This is amongst the best in the industry. HALO outperforms 99.48% of its industry peers.
• HALO has a better Return On Invested Capital (23.00%) than 98.60% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 13.92%.
• The last Return On Invested Capital (23.00%) for HALO is above the 3 year average (17.81%), which is a sign of increasing profitability.
• HALO has a Profit Margin of 43.74%. This is amongst the best in the industry. HALO outperforms 99.13% of its industry peers.
• HALO has a better Operating Margin (54.32%) than 99.83% of its industry peers.
• HALO has a better Gross Margin (84.30%) than 87.76% of its industry peers.
• HALO's Gross Margin has improved in the last couple of years.

Health Insights: 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 8 out of 10:

• An Altman-Z score of 4.84 indicates that HALO is not in any danger for bankruptcy at the moment.
• HALO has a better Altman-Z score (4.84) than 81.12% of its industry peers.
• The Debt to FCF ratio of HALO is 3.21, which is a good value as it means it would take HALO, 3.21 years of fcf income to pay off all of its debts.
• HALO's Debt to FCF ratio of 3.21 is amongst the best of the industry. HALO outperforms 93.88% of its industry peers.
• A Current Ratio of 7.80 indicates that HALO has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 7.80, HALO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
• HALO has a Quick Ratio of 6.78. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
• HALO's Quick ratio of 6.78 is fine compared to the rest of the industry. HALO outperforms 67.31% of its industry peers.

Looking at the Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HALO has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 52.16% 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 30.12% on average per year.
• The Revenue has grown by 22.46% in the past year. This is a very strong growth!
• The Revenue has been growing by 38.95% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 15.58% on average over the next years. This is quite good.
• Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 10.99% on average per year.

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

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

Disclaimer

This article should in no way be interpreted as advice. 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.