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

Overall HALO gets a fundamental rating of 8 out of 10. We evaluated HALO against 562 industry peers in the Biotechnology industry. HALO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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!.


Dividend Valuation Growth Profitability Health

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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.
Each year in the past 5 years HALO has been profitable.
In the past 5 years HALO always reported a positive cash flow from operatings.
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

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.
With an excellent Return On Invested Capital value of 23.44%, HALO belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
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 better Profit Margin (44.76%) than 98.93% of its industry peers.
HALO's Profit Margin has declined in the last couple of years.
HALO's Operating Margin of 55.10% is amongst the best of the industry. HALO outperforms 99.82% of its industry peers.
In the last couple of years the Operating Margin of HALO has declined.
HALO's Gross Margin of 83.45% is amongst the best of the industry. HALO outperforms 86.12% of its industry peers.
HALO's Gross Margin has improved in the last couple of years.
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.
Compared to 1 year ago, HALO has less shares outstanding
The number of shares outstanding for HALO has been reduced compared to 5 years ago.
HALO has a better debt/assets ratio than last year.
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.
With an excellent Altman-Z score value of 5.15, HALO belongs to the best of the industry, outperforming 81.14% of the companies in the same industry.
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 93.95% 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 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
WACC9.26%
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.
Looking at the Current ratio, with a value of 8.39, HALO is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
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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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 46.77% over the past year.
The Earnings Per Share has been growing by 30.12% on average over the past years. This is a very strong growth
The Revenue has grown by 25.66% in the past year. This is a very strong growth!
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

The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
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

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

A Price/Earnings ratio of 14.60 indicates a correct valuation of HALO.
Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 95.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.21, HALO is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.76, which indicates a very decent valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued 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 (20.44), we can say HALO is valued rather cheaply.
Industry RankSector Rank
PE 14.6
Fwd PE 9.76
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

96.26% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaply inside the industry as 96.09% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.56
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

HALO's 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)0.59
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