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

7

HALO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 588 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making HALO a very profitable company, without any liquidiy or solvency issues. 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!.



7

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 4 of the past 5 years.
Of the past 5 years HALO 4 years had a positive operating cash flow.

1.2 Ratios

HALO has a Return On Assets of 16.25%. This is amongst the best in the industry. HALO outperforms 98.97% of its industry peers.
The Return On Equity of HALO (335.99%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 17.00%, HALO belongs to the best of the industry, outperforming 98.46% 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 13.60%.
Industry RankSector Rank
ROA 16.25%
ROE 335.99%
ROIC 17%
ROA(3y)21.23%
ROA(5y)14.64%
ROE(3y)219.81%
ROE(5y)133.26%
ROIC(3y)17.78%
ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 33.96%, HALO belongs to the best of the industry, outperforming 99.14% of the companies in the same industry.
HALO's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 41.02%, HALO belongs to the best of the industry, outperforming 99.32% of the companies in the same industry.
HALO's Operating Margin has declined in the last couple of years.
HALO has a Gross Margin of 76.82%. This is amongst the best in the industry. HALO outperforms 86.30% of its industry peers.
HALO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 41.02%
PM (TTM) 33.96%
GM 76.82%
OM growth 3Y-8.72%
OM growth 5YN/A
PM growth 3Y-11.05%
PM growth 5YN/A
GM growth 3Y-2.86%
GM growth 5Y-3.81%

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7

2. Health

2.1 Basic Checks

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
HALO has less shares outstanding than it did 5 years ago.
HALO has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.42 indicates that HALO is not in any danger for bankruptcy at the moment.
The Altman-Z score of HALO (3.42) is better than 77.05% of its industry peers.
The Debt to FCF ratio of HALO is 4.02, which is a neutral value as it means it would take HALO, 4.02 years of fcf income to pay off all of its debts.
HALO has a better Debt to FCF ratio (4.02) than 95.03% of its industry peers.
A Debt/Equity ratio of 17.89 is on the high side and indicates that HALO has dependencies on debt financing.
The Debt to Equity ratio of HALO (17.89) is worse than 85.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 17.89
Debt/FCF 4.02
Altman-Z 3.42
ROIC/WACC2.33
WACC7.29%

2.3 Liquidity

A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
HALO has a Current ratio of 6.64. This is in the better half of the industry: HALO outperforms 66.44% of its industry peers.
A Quick Ratio of 5.50 indicates that HALO has no problem at all paying its short term obligations.
HALO has a Quick ratio of 5.50. This is comparable to the rest of the industry: HALO outperforms 59.25% of its industry peers.
Industry RankSector Rank
Current Ratio 6.64
Quick Ratio 5.5

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9

3. Growth

3.1 Past

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.23%, which is quite impressive.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.
The Revenue has grown by 25.59% 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 40.42% on average per year.
EPS 1Y (TTM)25.23%
EPS 3Y45.64%
EPS 5YN/A
EPS growth Q2Q70.83%
Revenue 1Y (TTM)25.59%
Revenue growth 3Y45.79%
Revenue growth 5Y40.42%
Revenue growth Q2Q26.74%

3.2 Future

HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.73% yearly.
The Revenue is expected to grow by 11.91% on average over the next years. This is quite good.
EPS Next Y35.27%
EPS Next 2Y29.38%
EPS Next 3Y30.48%
EPS Next 5Y20.73%
Revenue Next Year14.89%
Revenue Next 2Y14.25%
Revenue Next 3Y16.45%
Revenue Next 5Y11.91%

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.

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9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.87, HALO is valued correctly.
Based on the Price/Earnings ratio, HALO is valued cheaper than 97.60% of the companies in the same industry.
HALO is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.26, 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 98.63% of the companies in the same industry.
HALO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
Industry RankSector Rank
PE 13.87
Fwd PE 10.26

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 96.58% of the companies listed in the same industry.
98.29% 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 13.13
EV/EBITDA 13.72

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.
HALO has a very decent profitability rating, which may justify a higher PE ratio.
HALO's earnings are expected to grow with 30.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y29.38%
EPS Next 3Y30.48%

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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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