Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
Overall HALO gets a fundamental rating of 8 out of 10. We evaluated HALO against 562 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. 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.
Each year in the past 5 years HALO has been profitable.
Each year in the past 5 years HALO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.10%, HALO belongs to the top of the industry, outperforming 98.93% of the companies in the same industry.
HALO has a Return On Equity of 100.64%. This is amongst the best in the industry. HALO outperforms 99.47% of its industry peers.
HALO has a Return On Invested Capital of 23.44%. This is amongst the best in the industry. HALO outperforms 98.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is above the industry average of 14.69%.
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 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
HALO has a Profit Margin of 44.76%. This is amongst the best in the industry. HALO outperforms 98.93% of its industry peers.
In the last couple of years the Profit Margin of HALO has declined.
HALO has a Operating Margin of 55.10%. This is amongst the best in the industry. HALO outperforms 99.82% of its industry peers.
In the last couple of years the Operating Margin of HALO has declined.
HALO has a Gross Margin of 83.45%. This is amongst the best in the industry. HALO outperforms 86.12% of its industry peers.
HALO's Gross Margin has improved in the last couple of years.
The Price/Earnings ratio is 14.43, which indicates a correct valuation of HALO.
Based on the Price/Earnings ratio, HALO is valued cheaper than 95.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, HALO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 9.64, the valuation of HALO can be described as reasonable.
Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 96.98% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (20.44), we can say HALO is valued rather cheaply.
Industry Rank
Sector Rank
PE
14.43
Fwd PE
9.64
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.26% of the companies listed in the same industry.
HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 96.09% of the companies in the same industry.
Industry Rank
Sector Rank
P/FCF
16.36
EV/EBITDA
12.26
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.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 24.66% in the coming years.