Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
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.
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.
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 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
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.
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 Rank
Sector Rank
PE
14.48
Fwd PE
9.67
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 Rank
Sector Rank
P/FCF
16.41
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.
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.