HALOZYME THERAPEUTICS INC (HALO)

US40637H1095 - Common Stock

40.795  +0.07 (+0.16%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to HALO. HALO was compared to 592 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!



7

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.
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

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.
HALO has a Return On Equity of 335.99%. This is amongst the best in the industry. HALO outperforms 100.00% of its industry peers.
HALO has a better Return On Invested Capital (17.00%) than 98.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 13.58%.
Industry RankSector 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

Looking at the Profit Margin, with a value of 33.96%, HALO belongs to the top of the industry, outperforming 99.15% of the companies in the same industry.
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.
HALO's Operating Margin has declined in the last couple of years.
HALO has a Gross Margin of 76.82%. This is amongst the best in the industry. HALO outperforms 86.05% of its industry peers.
HALO's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

7

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
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

HALO has an Altman-Z score of 3.52. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HALO (3.52) is better than 73.64% 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.
The Debt to FCF ratio of HALO (4.02) is better than 95.07% of its industry peers.
HALO has a Debt/Equity ratio of 17.89. This is a high value indicating a heavy dependency on external financing.
HALO has a worse Debt to Equity ratio (17.89) than 86.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 17.89
Debt/FCF 4.02
Altman-Z 3.52
ROIC/WACC2.13
WACC8%

2.3 Liquidity

A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
With a decent Current ratio value of 6.64, HALO is doing good in the industry, outperforming 63.78% of the companies in the same industry.
A Quick Ratio of 5.50 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.50, HALO is in line with its industry, outperforming 57.82% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 6.64
Quick Ratio 5.5

9

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%.
The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!
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

The Earnings Per Share is expected to grow by 20.73% on average over the next years. This is a very strong growth
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 11.91% on average per year.
EPS Next Y35.2%
EPS Next 2Y29.58%
EPS Next 3Y30.61%
EPS Next 5Y20.73%
Revenue Next Year14.92%
Revenue Next 2Y14.36%
Revenue Next 3Y16.54%
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.

9

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.67, which indicates a correct valuation of HALO.
Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (26.42), we can say HALO is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.85 indicates a reasonable valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued cheaper than 98.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (22.74), we can say HALO is valued rather cheaply.
Industry RankSector Rank
PE 14.67
Fwd PE 10.85

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaper than 96.60% of the companies in the same industry.
98.30% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.86
EV/EBITDA 14.38

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 decent profitability rating of HALO may justify a higher PE ratio.
HALO's earnings are expected to grow with 30.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y29.58%
EPS Next 3Y30.61%

0

5. Dividend

5.1 Amount

HALO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

HALOZYME THERAPEUTICS INC

NASDAQ:HALO (3/28/2024, 12:17:59 PM)

40.795

+0.07 (+0.16%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap5.17B
Analysts
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Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
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Div Incr Years
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
Industry RankSector Rank
PE 14.67
Fwd PE 10.85
P/S
P/FCF
P/OCF
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P/tB
EV/EBITDA
EPS(TTM)
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EPS(NY)
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PEG (NY)0.42
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 16.25%
ROE 335.99%
ROCE
ROIC
ROICexc
ROICexgc
OM 41.02%
PM (TTM) 33.96%
GM 76.82%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 17.89
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 6.64
Quick Ratio 5.5
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)25.23%
EPS 3Y45.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y35.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.59%
Revenue growth 3Y45.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
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