Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


HALOZYME THERAPEUTICS INC

Nasdaq / Health Care / Biotechnology

Fundamental Rating

8

Taking everything into account, HALO scores 8 out of 10 in our fundamental rating. HALO was compared to 563 industry peers in the Biotechnology industry. HALO gets an excellent profitability rating and is at the same time showing great financial health properties. An interesting combination arises when we look at growth and value: HALO is growing strongly while it also seems undervalued. These ratings would make HALO suitable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

HALO had positive earnings in the past year.
In the past year HALO had a positive cash flow from operations.
In the past 5 years HALO has always been profitable.
HALO had a positive operating cash flow in each of the past 5 years.
HALO Yearly Net Income VS EBIT VS OCF VS FCFHALO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

1.2 Ratios

The Return On Assets of HALO (22.10%) is better than 98.94% of its industry peers.
Looking at the Return On Equity, with a value of 100.64%, HALO belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.44%, HALO belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 14.28%.
The last Return On Invested Capital (23.44%) for HALO is above the 3 year average (17.81%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 22.1%
ROE 100.64%
ROIC 23.44%
ROA(3y)16.25%
ROA(5y)21.49%
ROE(3y)192.36%
ROE(5y)173.4%
ROIC(3y)17.81%
ROIC(5y)29.79%
HALO Yearly ROA, ROE, ROICHALO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

The Profit Margin of HALO (44.76%) is better than 98.94% of its industry peers.
In the last couple of years the Profit Margin of HALO has declined.
HALO has a better Operating Margin (55.10%) than 99.82% of its industry peers.
In the last couple of years the Operating Margin of HALO has declined.
The Gross Margin of HALO (83.45%) is better than 86.17% of its industry peers.
In the last couple of years the Gross Margin of HALO has grown nicely.
Industry RankSector Rank
OM 55.1%
PM (TTM) 44.76%
GM 83.45%
OM growth 3Y-4.44%
OM growth 5YN/A
PM growth 3Y-21.62%
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y1.9%
HALO Yearly Profit, Operating, Gross MarginsHALO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HALO is creating value.
HALO has less shares outstanding than it did 1 year ago.
HALO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HALO has been reduced compared to a year ago.
HALO Yearly Shares OutstandingHALO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
HALO Yearly Total Debt VS Total AssetsHALO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

HALO has an Altman-Z score of 5.15. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO has a better Altman-Z score (5.15) than 81.03% of its industry peers.
The Debt to FCF ratio of HALO is 3.04, which is a good value as it means it would take HALO, 3.04 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.04, HALO belongs to the best of the industry, outperforming 93.97% of the companies in the same industry.
A Debt/Equity ratio of 3.13 is on the high side and indicates that HALO has dependencies on debt financing.
HALO has a worse Debt to Equity ratio (3.13) than 82.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.13
Debt/FCF 3.04
Altman-Z 5.15
ROIC/WACC2.51
WACC9.33%
HALO Yearly LT Debt VS Equity VS FCFHALO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

HALO has a Current Ratio of 8.39. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 8.39, HALO is doing good in the industry, outperforming 74.65% of the companies in the same industry.
A Quick Ratio of 7.30 indicates that HALO has no problem at all paying its short term obligations.
HALO has a better Quick ratio (7.30) than 69.86% of its industry peers.
Industry RankSector Rank
Current Ratio 8.39
Quick Ratio 7.3
HALO Yearly Current Assets VS Current LiabilitesHALO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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3. Growth

3.1 Past

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.77%, which is quite impressive.
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.
HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.
The Revenue has been growing by 38.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)46.77%
EPS 3Y30.12%
EPS 5YN/A
EPS Q2Q%40.51%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y31.82%
Revenue growth 5Y38.95%
Sales Q2Q%35.22%

3.2 Future

Based on estimates for the next years, HALO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.27% yearly.
EPS Next Y24.79%
EPS Next 2Y26.9%
EPS Next 3Y24.66%
EPS Next 5Y16.06%
Revenue Next Year23.85%
Revenue Next 2Y23.25%
Revenue Next 3Y21.17%
Revenue Next 5Y11.27%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
HALO Yearly Revenue VS EstimatesHALO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B
HALO Yearly EPS VS EstimatesHALO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6 8

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.48, the valuation of HALO can be described as correct.
Based on the Price/Earnings ratio, HALO is valued cheaper than 95.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. HALO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 96.99% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.44. HALO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 14.48
Fwd PE 9.67
HALO Price Earnings VS Forward Price EarningsHALO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.28% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 96.10% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.41
EV/EBITDA 12.26
HALO Per share dataHALO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

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.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 24.66% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y26.9%
EPS Next 3Y24.66%

0

5. Dividend

5.1 Amount

HALO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A