Stock Analysis: Affordable Growth

Fundamental Rating

Overall HALO gets a fundamental rating of 8 out of 10. We evaluated HALO against 562 industry peers in the Biotechnology industry. HALO gets an excellent profitability rating and is at the same time showing great financial health properties. HALO is evaluated to be cheap and growing strongly. This does not happen too often! 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.

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

In the past 5 years HALO has always been profitable.

Each year in the past 5 years HALO had a positive operating cash flow.

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.

Looking at the Return On Equity, with a value of 100.64%, HALO belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.

HALO's Return On Invested Capital of 23.44% is amongst the best of the industry. HALO outperforms 98.93% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for HALO 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 has a better Profit Margin (44.76%) than 98.93% of its industry peers.

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

The Operating Margin of HALO (55.10%) is better than 99.82% of its industry peers.

HALO's Operating Margin has declined in the last couple of years.

The Gross Margin of HALO (83.45%) is better than 86.12% of its industry peers.

HALO's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HALO is creating value.

HALO has less shares outstanding than it did 1 year ago.

The number of shares outstanding for HALO has been reduced compared to 5 years ago.

HALO has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 5.18 indicates that HALO is not in any danger for bankruptcy at the moment.

HALO has a better Altman-Z score (5.18) than 80.78% 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.

Looking at the Debt to FCF ratio, with a value of 3.04, HALO belongs to the top of the industry, outperforming 94.13% of the companies in the same industry.

A Debt/Equity ratio of 3.13 is on the high side and indicates that HALO has dependencies on debt financing.

HALO has a worse Debt to Equity ratio (3.13) than 82.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.13
Debt/FCF	3.04
Altman-Z	5.18

ROIC/WACC2.53

WACC9.27%

2.3 Liquidity

A Current Ratio of 8.39 indicates that HALO has no problem at all paying its short term obligations.

HALO has a Current ratio of 8.39. This is in the better half 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 69.75% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	8.39
Quick Ratio	7.3

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WACC

Debt/Equity

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Altman-Z score

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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

Looking at the last year, HALO shows a very strong growth in Revenue. 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

HALO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.

HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.27% yearly.

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.

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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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.55, which indicates a very decent valuation of HALO.

Based on the Price/Earnings ratio, HALO is valued cheaper than 95.91% of the companies in the same industry.

HALO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.83.

Based on the Price/Forward Earnings ratio of 7.71, the valuation of HALO can be described as very cheap.

HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 96.98% 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 20.94.

		Industry Rank	Sector Rank
PE	11.55
Fwd PE	7.71

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.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.09% of the companies listed in the same industry.