Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
HALO gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals 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!.
1. Profitability
1.1 Basic Checks
In the past year HALO was profitable.
HALO had a positive operating cash flow in the past year.
Each year in the past 5 years HALO has been profitable.
HALO had a positive operating cash flow in each of the past 5 years.
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.
HALO has a better Return On Equity (100.64%) than 99.47% of its industry peers.
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 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
With an excellent Profit Margin value of 44.76%, HALO belongs to the best 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.
With an excellent Operating Margin value of 55.10%, HALO belongs to the best of the industry, outperforming 99.82% of the companies in the same industry.
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.
HALO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HALO has less shares outstanding
Compared to 5 years ago, HALO has less shares outstanding
Compared to 1 year ago, HALO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.15 indicates that HALO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.15, HALO belongs to the top of the industry, outperforming 81.14% 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.
HALO has a better Debt to FCF ratio (3.04) than 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.
The Debt to Equity ratio of HALO (3.13) is worse than 82.92% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
3.13
Debt/FCF
3.04
Altman-Z
5.15
ROIC/WACC2.53
WACC9.27%
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.
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.
HALO's Quick ratio of 7.30 is fine compared to the rest of the industry. HALO outperforms 69.93% of its industry peers.
Based on the Price/Earnings ratio of 14.63, the valuation of HALO can be described as correct.
95.91% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.83. HALO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.77 indicates a reasonable valuation of HALO.
96.98% of the companies in the same industry are more expensive than HALO, based on the Price/Forward Earnings ratio.
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 Rank
Sector Rank
PE
14.63
Fwd PE
9.77
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 96.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 96.09% of the companies in the same industry.
Industry Rank
Sector Rank
P/FCF
16.59
EV/EBITDA
12.26
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 an outstanding profitability rating, which 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.