Stock Analysis: Affordable Growth

Fundamental Rating

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. HALO is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, HALO could be worth investigating further for value and growth and quality investing!.

1. Profitability

1.1 Basic Checks

HALO had positive earnings in the past year.

In the past year HALO had a positive cash flow from operations.

HALO had positive earnings in each of the past 5 years.

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's Return On Equity of 100.64% is amongst the best of 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.

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

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

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.

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

HALO has a better Gross Margin (83.45%) than 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

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

HALO has less shares outstanding than it did 5 years ago.

Compared to 1 year ago, HALO has an improved debt to assets ratio.

2.2 Solvency

HALO has an Altman-Z score of 4.37. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.

HALO has a better Altman-Z score (4.37) than 80.25% 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.

Looking at the Debt to FCF ratio, with a value of 3.04, HALO belongs to the top 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 Debt to Equity ratio of 3.13. This is amonst the worse of the industry: HALO underperforms 82.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.13
Debt/FCF	3.04
Altman-Z	4.37

ROIC/WACC2.6

WACC9.01%

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 74.38% 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.

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.

The Earnings Per Share has been growing by 30.12% on average over the past years. This is a very strong growth

HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.

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.

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

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.78, the valuation of HALO can be described as very reasonable.

HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 97.15% of the companies in the same industry.

HALO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.85.

Based on the Price/Forward Earnings ratio of 7.20, the valuation of HALO can be described as very cheap.

HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 97.86% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, HALO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.78
Fwd PE	7.2

4.2 Price Multiples

97.33% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.

HALO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HALO is cheaper than 97.15% of the companies in the same industry.