Stock Analysis: Decent Value Stocks

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. An interesting combination arises when we look at growth and value: HALO is growing strongly while it also seems undervalued. 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.

Of the past 5 years HALO 4 years were profitable.

HALO had a positive operating cash flow in 4 of the past 5 years.

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 has a better Return On Equity (335.99%) than 100.00% of its industry peers.

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

Measured over the past 3 years, the Average Return On Invested Capital for HALO 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

HALO's Profit Margin of 33.96% is amongst the best of the industry. HALO outperforms 99.14% of its industry peers.

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

HALO's Operating Margin of 41.02% is amongst the best of the industry. HALO outperforms 99.32% 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 76.82%, HALO belongs to the top of the industry, outperforming 86.30% of the companies in the same industry.

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.

The number of shares outstanding for HALO has been reduced compared to 1 year ago.

Compared to 5 years ago, HALO has less shares outstanding

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

2.2 Solvency

An Altman-Z score of 3.44 indicates that HALO is not in any danger for bankruptcy at the moment.

HALO's Altman-Z score of 3.44 is fine compared to the rest of the industry. HALO outperforms 77.23% 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 has a better Debt to FCF ratio (4.02) than 95.03% 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.

Looking at the Debt to Equity ratio, with a value of 17.89, HALO is doing worse than 85.27% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	17.89
Debt/FCF	4.02
Altman-Z	3.44

ROIC/WACC2.35

WACC7.25%

2.3 Liquidity

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

The Current ratio of HALO (6.64) is better than 66.44% 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 comparable to the rest of the industry.

		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

The Earnings Per Share has grown by an impressive 25.23% over the past year.

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

HALO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.73% yearly.

HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.91% yearly.

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.

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 14.15, which indicates a correct valuation of HALO.

Based on the Price/Earnings ratio, HALO is valued cheaper than 97.77% of the companies in the same industry.

The average S&P500 Price/Earnings ratio is at 25.20. HALO is valued slightly cheaper when compared to this.

HALO is valuated reasonably with a Price/Forward Earnings ratio of 10.46.

Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 98.80% of the companies listed in the same industry.

When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (21.60), we can say HALO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.15
Fwd PE	10.46

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 96.40% 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 98.29% of the companies listed in the same industry.