Stock Analysis: Affordable Growth

Fundamental Rating

Taking everything into account, HALO scores 7 out of 10 in our fundamental rating. HALO was compared to 587 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making HALO a very profitable company, without any liquidiy or solvency issues. HALO is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, HALO could be worth investigating further for value and growth and quality investing!.

1. Profitability

1.1 Basic Checks

In the past year HALO was profitable.

In the past year HALO had a positive cash flow from operations.

HALO had positive earnings in 4 of the past 5 years.

HALO had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 17.31%, HALO belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.

With an excellent Return On Equity value of 179.30%, HALO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

The Return On Invested Capital of HALO (18.09%) is better than 98.80% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 14.45%.

The 3 year average ROIC (17.78%) for HALO is below the current ROIC(18.09%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	17.31%
ROE	179.3%
ROIC	18.09%

ROA(3y)21.23%

ROA(5y)14.64%

ROE(3y)219.81%

ROE(5y)133.26%

ROIC(3y)17.78%

ROIC(5y)N/A

1.3 Margins

HALO's Profit Margin of 36.95% is amongst the best of the industry. HALO outperforms 99.49% of its industry peers.

In the last couple of years the Profit Margin of HALO has declined.

HALO has a Operating Margin of 44.25%. This is amongst the best in the industry. HALO outperforms 99.49% of its industry peers.

In the last couple of years the Operating Margin of HALO has declined.

HALO has a Gross Margin of 78.51%. This is amongst the best in the industry. HALO outperforms 86.84% of its industry peers.

HALO's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	44.25%
PM (TTM)	36.95%
GM	78.51%

OM growth 3Y-8.72%

OM growth 5YN/A

PM growth 3Y-11.05%

PM growth 5YN/A

GM growth 3Y-2.86%

GM growth 5Y-3.81%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HALO is creating value.

The number of shares outstanding for HALO has been reduced compared to 1 year ago.

Compared to 5 years ago, HALO has less shares outstanding

HALO has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.77 indicates that HALO is not in any danger for bankruptcy at the moment.

With a decent Altman-Z score value of 3.77, HALO is doing good in the industry, outperforming 75.56% of the companies in the same industry.

The Debt to FCF ratio of HALO is 3.54, which is a good value as it means it would take HALO, 3.54 years of fcf income to pay off all of its debts.

HALO has a better Debt to FCF ratio (3.54) than 95.90% of its industry peers.

A Debt/Equity ratio of 8.44 is on the high side and indicates that HALO has dependencies on debt financing.

HALO has a worse Debt to Equity ratio (8.44) than 84.62% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	8.44
Debt/FCF	3.54
Altman-Z	3.77

ROIC/WACC2.48

WACC7.31%

2.3 Liquidity

A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.

HALO has a better Current ratio (6.64) than 65.64% of its industry peers.

A Quick Ratio of 5.36 indicates that HALO has no problem at all paying its short term obligations.

With a Quick ratio value of 5.36, HALO perfoms like the industry average, outperforming 57.61% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	6.64
Quick Ratio	5.36

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.64% over the past year.

HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.

Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 22.40%.

The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)39.64%

EPS 3Y45.64%

EPS 5YN/A

EPS growth Q2Q68.09%

Revenue 1Y (TTM)22.4%

Revenue growth 3Y45.79%

Revenue growth 5Y40.42%

Revenue growth Q2Q20.84%

3.2 Future

HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.93% yearly.

HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.80% yearly.

EPS Next Y35.27%

EPS Next 2Y29.38%

EPS Next 3Y30.48%

EPS Next 5Y22.93%

Revenue Next Year14.89%

Revenue Next 2Y14.25%

Revenue Next 3Y16.45%

Revenue Next 5Y13.8%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.14, the valuation of HALO can be described as correct.

Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.44% of the companies are valued more expensively.

HALO is valuated cheaply when we compare the Price/Earnings ratio to 28.56, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 9.42, 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 98.63% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 20.34, HALO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.14
Fwd PE	9.42

4.2 Price Multiples

HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 96.58% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.