Stock Analysis: Affordable Growth

Fundamental Rating

HALO gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 562 industry peers in the Biotechnology industry. HALO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HALO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! 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 each of the past 5 years.

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

1.2 Ratios

The Return On Assets of HALO (22.10%) is better than 98.93% of its industry peers.

The Return On Equity of HALO (100.64%) is better than 99.47% of its industry peers.

HALO has a better Return On Invested Capital (23.44%) than 98.93% of its industry peers.

The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 14.31%.

The 3 year average ROIC (17.81%) for HALO is below the current ROIC(23.44%), indicating increased profibility in the last year.

		Industry Rank	Sector 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%

1.3 Margins

With an excellent Profit Margin value of 44.76%, HALO belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.

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

HALO has a better Operating Margin (55.10%) than 99.82% of its industry peers.

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

HALO has a Gross Margin of 83.45%. This is amongst the best in the industry. HALO outperforms 86.12% of its industry peers.

In the last couple of years the Gross Margin of HALO has grown nicely.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

HALO has less shares outstanding than it did 1 year ago.

Compared to 5 years ago, HALO has less shares outstanding

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

2.2 Solvency

An Altman-Z score of 5.18 indicates that HALO is not in any danger for bankruptcy at the moment.

The Altman-Z score of HALO (5.18) is better than 80.78% 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.

HALO's Debt to FCF ratio of 3.04 is amongst the best of the industry. HALO outperforms 94.13% of its industry peers.

A Debt/Equity ratio of 3.13 is on the high side and indicates that HALO has dependencies on debt financing.

HALO's Debt to Equity ratio of 3.13 is on the low side compared to the rest of the industry. HALO is outperformed by 82.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.13
Debt/FCF	3.04
Altman-Z	5.18

ROIC/WACC2.56

WACC9.14%

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.

HALO's Current ratio of 8.39 is fine compared to the rest of the industry. HALO outperforms 74.73% of its industry peers.

A Quick Ratio of 7.30 indicates that HALO has no problem at all paying its short term obligations.

With a decent Quick ratio value of 7.30, HALO is doing good in the industry, outperforming 69.75% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	8.39
Quick Ratio	7.3

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WACC

Debt/Equity

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Altman-Z score

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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.

HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.12% yearly.

The Revenue has grown by 25.66% in the past year. This is a very strong growth!

HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.95% yearly.

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.

Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 11.27% on average per year.

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

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

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

HALO is valuated reasonably with a Price/Earnings ratio of 11.04.

95.91% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.

HALO is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 7.37, the valuation of HALO can be described as very cheap.

96.98% of the companies in the same industry are more expensive than HALO, based on the Price/Forward Earnings ratio.

HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.99.

		Industry Rank	Sector Rank
PE	11.04
Fwd PE	7.37

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.26% of the companies in the same industry.

96.09% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	12.52
EV/EBITDA	12.39

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.

HALO has an outstanding profitability rating, which may justify a higher PE ratio.

HALO's earnings are expected to grow with 24.66% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.45

PEG (5Y)N/A

EPS Next 2Y26.9%

EPS Next 3Y24.66%

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5. Dividend

5.1 Amount

HALO does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Nasdaq / Health Care / Biotechnology

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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