Stock Analysis: Affordable Growth

Fundamental Rating

Overall HALO gets a fundamental rating of 7 out of 10. We evaluated HALO 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!.

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

With an excellent Return On Assets value of 16.25%, HALO belongs to the best of the industry, outperforming 98.97% of the companies in the same industry.

HALO has a Return On Equity of 335.99%. This is amongst the best in the industry. HALO outperforms 100.00% of its industry peers.

HALO's Return On Invested Capital of 17.00% is amongst the best of the industry. HALO outperforms 98.46% of its industry peers.

HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 13.58%.

		Industry Rank	Sector 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

Looking at the Profit Margin, with a value of 33.96%, HALO belongs to the top of the industry, outperforming 99.15% of the companies in the same industry.

In the last couple of years the Profit Margin of HALO has declined.

HALO's Operating Margin of 41.02% is amongst the best of the industry. HALO outperforms 99.32% of its industry peers.

In the last couple of years the Operating Margin of HALO has declined.

HALO has a Gross Margin of 76.82%. This is amongst the best in the industry. HALO outperforms 86.15% of its industry peers.

In the last couple of years the Gross Margin of HALO has declined.

		Industry Rank	Sector 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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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

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

Compared to 1 year ago, HALO has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.39 indicates that HALO is not in any danger for bankruptcy at the moment.

HALO has a Altman-Z score of 3.39. This is in the better half of the industry: HALO outperforms 76.58% of its industry peers.

HALO has a debt to FCF ratio of 4.02. This is a neutral value as HALO would need 4.02 years to pay back of all of its debts.

HALO's Debt to FCF ratio of 4.02 is amongst the best of the industry. HALO outperforms 95.21% of its industry peers.

HALO has a Debt/Equity ratio of 17.89. This is a high value indicating a heavy dependency on external financing.

Looking at the Debt to Equity ratio, with a value of 17.89, HALO is doing worse than 85.81% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	17.89
Debt/FCF	4.02
Altman-Z	3.39

ROIC/WACC2.35

WACC7.25%

2.3 Liquidity

HALO has a Current Ratio of 6.64. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

The Current ratio of HALO (6.64) is better than 66.32% of its industry peers.

HALO has a Quick Ratio of 5.50. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

HALO has a Quick ratio (5.50) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	6.64
Quick Ratio	5.5

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 25.23% over the past year.

HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.

Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 25.59%.

The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!

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.

HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.91% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.90 indicates a correct valuation of HALO.

Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.78% of the companies listed in the same industry.

HALO is valuated rather cheaply when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 10.28, the valuation of HALO can be described as reasonable.

Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.80% of the companies are valued more expensively.

HALO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	13.9
Fwd PE	10.28

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 96.41% of the companies listed in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 98.46% of the companies listed in the same industry.