Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
HALO gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 560 industry peers in the Biotechnology industry. HALO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
HALO had a positive operating cash flow in the past year.
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
HALO's Return On Assets of 22.10% is amongst the best of the industry. HALO outperforms 97.86% of its industry peers.
HALO's Return On Equity of 100.64% is amongst the best of the industry. HALO outperforms 99.29% of its industry peers.
The Return On Invested Capital of HALO (23.44%) is better than 97.86% 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 15.80%.
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
With an excellent Profit Margin value of 44.76%, HALO belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
HALO's Profit Margin has declined in the last couple of years.
HALO has a Operating Margin of 55.10%. This is amongst the best in the industry. HALO outperforms 99.82% of its industry peers.
HALO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 83.45%, HALO belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
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.
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.
The debt/assets ratio for HALO has been reduced compared to a year ago.
2.2 Solvency
HALO has an Altman-Z score of 4.66. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.66, HALO is doing good in the industry, outperforming 79.82% 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.
Looking at the Debt to FCF ratio, with a value of 3.04, HALO belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
HALO has a Debt/Equity ratio of 3.13. This is a high value indicating a heavy dependency on external financing.
HALO has a Debt to Equity ratio of 3.13. This is amonst the worse of the industry: HALO underperforms 83.57% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
3.13
Debt/FCF
3.04
Altman-Z
4.66
ROIC/WACC2.71
WACC8.65%
2.3 Liquidity
A Current Ratio of 8.39 indicates that HALO has no problem at all paying its short term obligations.
With a decent Current ratio value of 8.39, HALO is doing good in the industry, outperforming 72.86% 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.
The Quick ratio of HALO (7.30) is better than 68.39% of its industry peers.
With a Price/Earnings ratio of 11.90, the valuation of HALO can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (25.91), we can say HALO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.73, 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 97.32% 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 21.77.
Industry Rank
Sector Rank
PE
11.9
Fwd PE
7.73
4.2 Price Multiples
96.61% of the companies in the same industry are more expensive than HALO, based on the Enterprise Value to EBITDA ratio.
96.43% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
Industry Rank
Sector Rank
P/FCF
13.45
EV/EBITDA
10.17
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.
HALO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 26.73% in the coming years.