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. HALO is growing strongly while it also seems undervalued. This is an interesting combination 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.
HALO had a positive operating cash flow in the past year.
Each year in the past 5 years HALO has 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 98.94% of the companies in the same industry.
With an excellent Return On Equity value of 100.64%, HALO belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.44%, HALO belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
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 last Return On Invested Capital (23.44%) for HALO is above the 3 year average (17.81%), which is a sign of increasing profitability.
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 Profit Margin of 44.76%. This is amongst the best in the industry. HALO outperforms 98.94% of its industry peers.
HALO's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 55.10%, HALO belongs to the best 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 86.17% of its industry peers.
HALO's Gross Margin has improved in the last couple of years.
HALO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 5.15 indicates that HALO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.15, HALO belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.04, HALO belongs to the best of the industry, outperforming 93.97% 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 82.98% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
3.13
Debt/FCF
3.04
Altman-Z
5.15
ROIC/WACC2.53
WACC9.26%
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.
Looking at the Current ratio, with a value of 8.39, HALO is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
A Quick Ratio of 7.30 indicates that HALO has no problem at all paying its short term obligations.
HALO has a better Quick ratio (7.30) than 69.86% of its industry peers.
The Price/Earnings ratio is 14.48, which indicates a correct valuation of HALO.
Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
HALO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.21.
Based on the Price/Forward Earnings ratio of 9.67, the valuation of HALO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.99% of the companies listed 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 20.44.
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 96.28% 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 96.10% 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.