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

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. An interesting combination arises when we look at growth and value: HALO is growing strongly while it also seems undervalued. These ratings could make HALO a good candidate for value and growth and quality investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

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

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.
The Return On Equity of HALO (100.64%) is better than 99.47% of its industry peers.
HALO's Return On Invested Capital of 23.44% is amongst the best of the industry. HALO outperforms 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 3 year average ROIC (17.81%) for HALO is below the current ROIC(23.44%), indicating increased profibility in the last year.
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's Profit Margin of 44.76% is amongst the best of the industry. HALO outperforms 98.93% of its industry peers.
HALO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 55.10%, HALO belongs to the top of the industry, outperforming 99.82% of the companies in the same industry.
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.
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.
HALO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HALO has less shares outstanding
The debt/assets ratio for HALO has been reduced compared to a year ago.
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.
HALO's Altman-Z score of 5.15 is amongst the best of the industry. HALO outperforms 81.14% of its industry peers.
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 Debt to FCF ratio of 3.04. This is amongst the best in the industry. HALO outperforms 93.95% of its industry peers.
HALO has a Debt/Equity ratio of 3.13. This is a high value indicating a heavy dependency on external 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

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 74.73% 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 69.93% 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
HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.
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 14.48 indicates a correct valuation of HALO.
95.91% of the companies in the same industry are more expensive than HALO, based on the Price/Earnings ratio.
HALO is valuated rather cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.67, which indicates a very decent valuation of HALO.
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.
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 14.48
Fwd PE 9.67
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

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 RankSector Rank
P/FCF 16.41
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)0.58
PEG (5Y)N/A
EPS Next 2Y26.9%
EPS Next 3Y24.66%

0

5. Dividend

5.1 Amount

No dividends for HALO!.
Industry RankSector Rank
Dividend Yield N/A