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 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 is evaluated to be cheap and growing strongly. This does not happen too often! 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.
HALO had a positive operating cash flow in the past year.
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

With an excellent Return On Assets value of 22.10%, HALO belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
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.
The Return On Invested Capital of HALO (23.44%) is better than 98.93% of its industry peers.
HALO had an Average Return On Invested Capital over the past 3 years of 17.81%. This 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 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

HALO has a Profit Margin of 44.76%. This is amongst the best in the industry. HALO outperforms 98.93% of its industry peers.
HALO's Profit Margin has declined in the last couple of years.
The Operating Margin of HALO (55.10%) is better 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 86.12% 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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8

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.
Compared to 5 years ago, HALO has less shares outstanding
Compared to 1 year ago, HALO has an improved debt to assets ratio.
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 Altman-Z score of 5.15. This is amongst the best in the industry. HALO outperforms 81.14% 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 has a Debt to FCF ratio of 3.04. This is amongst the best in the industry. HALO outperforms 93.95% of its industry peers.
HALO has a Debt/Equity ratio of 3.13. This is a high value indicating a heavy dependency on external financing.
HALO has a worse Debt to Equity ratio (3.13) than 82.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.13
Debt/FCF 3.04
Altman-Z 5.15
ROIC/WACC2.53
WACC9.27%
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

A Current Ratio of 8.39 indicates that HALO has no problem at all paying 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.
HALO has a Quick Ratio of 7.30. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 7.30, HALO is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
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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8

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.
The Earnings Per Share has been growing by 30.12% on average over the past years. This is a very strong growth
Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 25.66%.
Measured over the past years, HALO shows a very strong growth in Revenue. The Revenue has been growing by 38.95% on average per year.
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.
The Revenue is expected to grow by 11.27% on average over the next years. This is quite good.
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.
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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9

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.63 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 24.83, HALO is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.77, which indicates a very decent valuation of HALO.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 96.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (20.94), we can say HALO is valued rather cheaply.
Industry RankSector Rank
PE 14.63
Fwd PE 9.77
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 cheaply inside the industry as 96.26% of the companies are valued more expensively.
96.09% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.59
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.
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)0.59
PEG (5Y)N/A
EPS Next 2Y26.9%
EPS Next 3Y24.66%

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0

5. Dividend

5.1 Amount

No dividends for HALO!.
Industry RankSector Rank
Dividend Yield N/A

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