Stock Analysis: Affordable Growth

Fundamental Rating

Taking everything into account, HALO scores 7 out of 10 in our fundamental rating. HALO was compared to 588 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 would make HALO suitable 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.

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

With an excellent Return On Assets value of 16.25%, HALO belongs to the best of the industry, outperforming 98.98% of the companies in the same industry.

With an excellent Return On Equity value of 335.99%, HALO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

The Return On Invested Capital of HALO (17.00%) is better than 98.46% of its industry peers.

HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 13.85%.

		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

HALO has a better Profit Margin (33.96%) than 99.15% of its industry peers.

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

HALO's Operating Margin of 41.02% is amongst the best of the industry. HALO outperforms 99.49% of its industry peers.

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

With an excellent Gross Margin value of 76.82%, HALO belongs to the best of the industry, outperforming 86.35% of the companies in the same industry.

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

		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

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.

Compared to 5 years ago, HALO has less shares outstanding

The debt/assets ratio for HALO is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.43 indicates that HALO is not in any danger for bankruptcy at the moment.

HALO has a Altman-Z score of 3.43. This is in the better half of the industry: HALO outperforms 76.28% of its industry peers.

The Debt to FCF ratio of HALO is 4.02, which is a neutral value as it means it would take HALO, 4.02 years of fcf income to pay off all of its debts.

HALO's Debt to FCF ratio of 4.02 is amongst the best of the industry. HALO outperforms 95.05% 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 has a Debt to Equity ratio of 17.89. This is amonst the worse of the industry: HALO underperforms 84.98% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	17.89
Debt/FCF	4.02
Altman-Z	3.43

ROIC/WACC2.34

WACC7.28%

2.3 Liquidity

A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.

HALO's Current ratio of 6.64 is fine compared to the rest of the industry. HALO outperforms 66.55% of its industry peers.

A Quick Ratio of 5.50 indicates that HALO has no problem at all paying its short term obligations.

HALO has a Quick ratio of 5.50. This is comparable to the rest of the industry: HALO outperforms 59.39% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.64
Quick Ratio	5.5

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.23%, which is quite impressive.

The Earnings Per Share has been growing by 45.64% 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 25.59%.

HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.42% yearly.

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

Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 20.73% on average per year.

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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.95 indicates a correct valuation of HALO.

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.95% of the companies in the same industry.

When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (25.02), we can say HALO is valued slightly cheaper.

Based on the Price/Forward Earnings ratio of 10.31, the valuation of HALO can be described as reasonable.

Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 98.63% of the companies are valued more expensively.

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	13.95
Fwd PE	10.31

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 96.93% of the companies are valued more expensively.

Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 98.12% of the companies in the same industry.