We assign a fundamental rating of 7 out of 10 to HALO. HALO was compared to 525 industry peers in the Biotechnology industry. HALO has an excellent profitability rating, but there are some minor concerns on its financial health. 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 investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year HALO was profitable.
In the past year HALO had a positive cash flow from operations.
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

The Return On Assets of HALO (26.81%) is better than 97.71% of its industry peers.
With an excellent Return On Equity value of 118.17%, HALO belongs to the best of the industry, outperforming 99.62% of the companies in the same industry.
HALO's Return On Invested Capital of 42.77% is amongst the best of the industry. HALO outperforms 99.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is in line with the industry average of 18.07%.
The last Return On Invested Capital (42.77%) for HALO is above the 3 year average (17.81%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	26.81%
ROE	118.17%
ROIC	42.77%

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 47.91%, HALO belongs to the best of the industry, outperforming 98.29% of the companies in the same industry.
In the last couple of years the Profit Margin of HALO has declined.
Looking at the Operating Margin, with a value of 59.33%, HALO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HALO's Operating Margin has declined in the last couple of years.
The Gross Margin of HALO (84.55%) is better than 87.24% of its industry peers.
In the last couple of years the Gross Margin of HALO has grown nicely.

		Industry Rank	Sector Rank
OM	59.33%
PM (TTM)	47.91%
GM	84.55%

OM growth 3Y-4.44%

OM growth 5YN/A

PM growth 3Y-21.62%

PM growth 5YN/A

GM growth 3Y1.07%

GM growth 5Y1.9%

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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.
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.
The debt/assets ratio for HALO has been reduced compared to a year ago.

2.2 Solvency

HALO has an Altman-Z score of 5.17. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HALO (5.17) is better than 72.76% of its industry peers.
The Debt to FCF ratio of HALO is 2.51, which is a good value as it means it would take HALO, 2.51 years of fcf income to pay off all of its debts.
HALO has a Debt to FCF ratio of 2.51. This is amongst the best in the industry. HALO outperforms 93.14% of its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that HALO has dependencies on debt financing.
HALO has a Debt to Equity ratio of 1.59. This is in the lower half of the industry: HALO underperforms 76.95% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.59
Debt/FCF	2.51
Altman-Z	5.17

ROIC/WACC5.33

WACC8.02%

2.3 Liquidity

HALO has a Current Ratio of 1.59. This is a normal value and indicates that HALO is financially healthy and should not expect problems in meeting its short term obligations.
HALO has a worse Current ratio (1.59) than 80.00% of its industry peers.
HALO has a Quick Ratio of 1.37. This is a normal value and indicates that HALO is financially healthy and should not expect problems in meeting its short term obligations.
HALO has a worse Quick ratio (1.37) than 81.14% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.59
Quick Ratio	1.37

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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 48.55% over the past year.
Measured over the past years, HALO shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.12% on average per year.
The Revenue has grown by 31.19% in the past year. This is a very strong growth!
HALO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.95% yearly.

EPS 1Y (TTM)48.55%

EPS 3Y30.12%

EPS 5YN/A

EPS Q2Q%35.43%

Revenue 1Y (TTM)31.19%

Revenue growth 3Y31.82%

Revenue growth 5Y38.95%

Sales Q2Q%22.12%

3.2 Future

HALO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.78% yearly.
The Revenue is expected to grow by 13.23% on average over the next years. This is quite good.

EPS Next Y51.29%

EPS Next 2Y40.02%

EPS Next 3Y32.08%

EPS Next 5Y17.78%

Revenue Next Year33.53%

Revenue Next 2Y29.85%

Revenue Next 3Y23.95%

Revenue Next 5Y13.23%

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

With a Price/Earnings ratio of 12.29, HALO is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.52% of the companies listed in the same industry.
HALO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 8.35, which indicates a very decent valuation of HALO.
Based on the Price/Forward Earnings ratio, HALO is valued cheaply inside the industry as 99.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (24.26), we can say HALO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.29
Fwd PE	8.35

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 96.76% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HALO is valued cheaper than 97.14% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	13.51
EV/EBITDA	10.88

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.
HALO's earnings are expected to grow with 32.08% in the coming years. This may justify a more expensive valuation.