Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
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 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! These ratings would make HALO suitable for value and growth and quality investing!
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.
HALO had positive earnings in each of the past 5 years.
In the past 5 years HALO always reported a positive cash flow from operatings.
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.
With an excellent Return On Equity value of 100.64%, HALO belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 23.44%, HALO belongs to the top of the industry, outperforming 98.93% 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 14.31%.
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
Looking at the Profit Margin, with a value of 44.76%, HALO belongs to the top 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.
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.
In the last couple of years the Gross Margin of HALO has grown nicely.
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HALO is creating value.
Compared to 1 year ago, HALO has less shares outstanding
Compared to 5 years ago, HALO has less shares outstanding
HALO has a better debt/assets ratio than last year.
2.2 Solvency
HALO has an Altman-Z score of 5.18. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.18, HALO belongs to the top of the industry, outperforming 80.78% of the companies in the same industry.
HALO has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as HALO would need 3.04 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.04, HALO belongs to the best of the industry, outperforming 94.13% 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 82.92% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
3.13
Debt/FCF
3.04
Altman-Z
5.18
ROIC/WACC2.57
WACC9.13%
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.
A Quick Ratio of 7.30 indicates that HALO has no problem at all paying its short term obligations.
HALO's Quick ratio of 7.30 is fine compared to the rest of the industry. HALO outperforms 69.75% of its industry peers.
A Price/Earnings ratio of 11.04 indicates a reasonable valuation of HALO.
HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 95.91% of the companies in the same industry.
HALO is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.37, the valuation of HALO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.99, HALO is valued rather cheaply.
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.
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
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.
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.