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 is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make HALO suitable 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.

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

HALO's Return On Assets of 16.25% is amongst the best of the industry. HALO outperforms 98.97% of its industry peers.

HALO's Return On Equity of 335.99% is amongst the best of the industry. HALO outperforms 100.00% of its industry peers.

With an excellent Return On Invested Capital value of 17.00%, HALO belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.

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

The Profit Margin of HALO (33.96%) is better than 99.15% of its industry peers.

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

HALO has a Operating Margin of 41.02%. This is amongst the best in 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 better Gross Margin (76.82%) than 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

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

Compared to 1 year ago, HALO has less shares outstanding

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

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

2.2 Solvency

An Altman-Z score of 3.40 indicates that HALO is not in any danger for bankruptcy at the moment.

HALO has a better Altman-Z score (3.40) than 76.41% 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 has a Debt to FCF ratio of 4.02. This is amongst the best in the industry. HALO outperforms 95.21% of its industry peers.

A Debt/Equity ratio of 17.89 is on the high side and indicates that HALO has dependencies on debt financing.

HALO's Debt to Equity ratio of 17.89 is on the low side compared to the rest of the industry. HALO is outperformed by 85.81% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	17.89
Debt/FCF	4.02
Altman-Z	3.4

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.

HALO's Current ratio of 6.64 is fine compared to the rest of the industry. HALO outperforms 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 in line with its industry peers.

		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%.

Measured over the past years, HALO shows a very strong growth in Revenue. The Revenue has been growing by 40.42% on average per year.

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.

The Revenue is expected to grow by 11.91% on average over the next years. This is quite good.

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.

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

A Price/Earnings ratio of 13.68 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 97.95% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 24.83, HALO is valued a bit cheaper.

HALO is valuated reasonably with a Price/Forward Earnings ratio of 10.11.

HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 98.80% 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 21.32.

		Industry Rank	Sector Rank
PE	13.68
Fwd PE	10.11

4.2 Price Multiples

HALO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HALO is cheaper than 96.41% of the companies in the same industry.

98.63% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.