HALOZYME THERAPEUTICS INC (HALO) Stock Fundamental Analysis
NASDAQ:HALO - Nasdaq - US40637H1095 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to HALO. HALO was compared to 553 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 is growing strongly while it also seems undervalued. This is an interesting combination This makes HALO very considerable for value and growth and quality investing!
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.
HALO had positive earnings in each of the past 5 years.
In the past 5 years HALO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HALO (22.10%) is better than 98.01% of its industry peers.
HALO has a Return On Equity of 100.64%. This is amongst the best in the industry. HALO outperforms 99.28% of its industry peers.
With an excellent Return On Invested Capital value of 23.44%, HALO belongs to the best of the industry, outperforming 98.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 14.97%.
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
HALO's Profit Margin of 44.76% is amongst the best of the industry. HALO outperforms 98.73% of its industry peers.
In the last couple of years the Profit Margin of HALO has declined.
HALO's Operating Margin of 55.10% is amongst the best of the industry. HALO outperforms 100.00% of its industry peers.
HALO's Operating Margin has declined in the last couple of years.
The Gross Margin of HALO (83.45%) is better than 87.52% of its industry peers.
In the last couple of years the Gross Margin of HALO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.1% | ||
| PM (TTM) | 44.76% | ||
| GM | 83.45% |
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%
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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.89 indicates that HALO is not in any danger for bankruptcy at the moment.
HALO has a better Altman-Z score (4.89) than 76.49% of its industry peers.
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.
HALO has a better Debt to FCF ratio (3.04) than 93.85% of its industry peers.
A Debt/Equity ratio of 3.13 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 3.13, HALO is doing worse than 82.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.13 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 4.89 |
ROIC/WACC2.62
WACC8.95%
2.3 Liquidity
HALO has a Current Ratio of 8.39. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO's Current ratio of 8.39 is fine compared to the rest of the industry. HALO outperforms 71.79% of its industry peers.
A Quick Ratio of 7.30 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 7.30, HALO is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 7.3 |
3. Growth
3.1 Past
HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.77%, which is quite impressive.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.12% yearly.
HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.
The Revenue has been growing by 38.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)46.77%
EPS 3Y30.12%
EPS 5YN/A
EPS Q2Q%40.51%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y31.82%
Revenue growth 5Y38.95%
Sales Q2Q%35.22%
3.2 Future
The Earnings Per Share is expected to grow by 16.77% on average over the next years. This is quite good.
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 12.63% on average per year.
EPS Next Y32.62%
EPS Next 2Y34.39%
EPS Next 3Y30.64%
EPS Next 5Y16.77%
Revenue Next Year24.54%
Revenue Next 2Y22.13%
Revenue Next 3Y19.67%
Revenue Next 5Y12.63%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.18, HALO is valued correctly.
HALO's Price/Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 96.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (27.25), we can say HALO is valued rather cheaply.
A Price/Forward Earnings ratio of 7.85 indicates a rather cheap valuation of HALO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.80. HALO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 7.85 |
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 96.75% 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 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
The 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 30.64% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y34.39%
EPS Next 3Y30.64%
5. Dividend
5.1 Amount
HALO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.97
-0.11 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners101.72%
Inst Owner Change-0.77%
Ins Owners0.82%
Ins Owner Change1.05%
Market Cap7.39B
Analysts74.67
Price Target67.96 (13.32%)
Short Float %7.88%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.72%
Min EPS beat(2)6.64%
Max EPS beat(2)14.79%
EPS beat(4)4
Avg EPS beat(4)16.48%
Min EPS beat(4)6.64%
Max EPS beat(4)26.79%
EPS beat(8)7
Avg EPS beat(8)11.76%
EPS beat(12)10
Avg EPS beat(12)11.39%
EPS beat(16)13
Avg EPS beat(16)12.38%
Revenue beat(2)2
Avg Revenue beat(2)7.09%
Min Revenue beat(2)1.36%
Max Revenue beat(2)12.81%
Revenue beat(4)4
Avg Revenue beat(4)9.53%
Min Revenue beat(4)1.36%
Max Revenue beat(4)13.28%
Revenue beat(8)5
Avg Revenue beat(8)4.78%
Revenue beat(12)7
Avg Revenue beat(12)3.03%
Revenue beat(16)9
Avg Revenue beat(16)3.86%
PT rev (1m)-5.59%
PT rev (3m)-4.24%
EPS NQ rev (1m)2.93%
EPS NQ rev (3m)11.05%
EPS NY rev (1m)0%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)1.54%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)4.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 7.85 | ||
| P/S | 6.81 | ||
| P/FCF | 14.91 | ||
| P/OCF | 14.67 | ||
| P/B | 15.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.16 |
EPS(TTM)4.55
EY7.59%
EPS(NY)7.64
Fwd EY12.74%
FCF(TTM)4.02
FCFY6.71%
OCF(TTM)4.09
OCFY6.82%
SpS8.8
BVpS3.91
TBVpS-2.59
PEG (NY)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.1% | ||
| ROE | 100.64% | ||
| ROCE | 29.2% | ||
| ROIC | 23.44% | ||
| ROICexc | 36.94% | ||
| ROICexgc | 96.44% | ||
| OM | 55.1% | ||
| PM (TTM) | 44.76% | ||
| GM | 83.45% | ||
| FCFM | 45.72% |
ROA(3y)16.25%
ROA(5y)21.49%
ROE(3y)192.36%
ROE(5y)173.4%
ROIC(3y)17.81%
ROIC(5y)29.79%
ROICexc(3y)23.94%
ROICexc(5y)N/A
ROICexgc(3y)71.73%
ROICexgc(5y)N/A
ROCE(3y)22.19%
ROCE(5y)37.11%
ROICexcg growth 3Y-1.13%
ROICexcg growth 5YN/A
ROICexc growth 3Y-28.16%
ROICexc growth 5YN/A
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%
F-Score9
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.13 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 9.93% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.2% | ||
| Profit Quality | 102.14% | ||
| Current Ratio | 8.39 | ||
| Quick Ratio | 7.3 | ||
| Altman-Z | 4.89 |
F-Score9
WACC8.95%
ROIC/WACC2.62
Cap/Depr(3y)13.62%
Cap/Depr(5y)33.32%
Cap/Sales(3y)1.21%
Cap/Sales(5y)0.98%
Profit Quality(3y)118.15%
Profit Quality(5y)93.9%
High Growth Momentum
Growth
EPS 1Y (TTM)46.77%
EPS 3Y30.12%
EPS 5YN/A
EPS Q2Q%40.51%
EPS Next Y32.62%
EPS Next 2Y34.39%
EPS Next 3Y30.64%
EPS Next 5Y16.77%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y31.82%
Revenue growth 5Y38.95%
Sales Q2Q%35.22%
Revenue Next Year24.54%
Revenue Next 2Y22.13%
Revenue Next 3Y19.67%
Revenue Next 5Y12.63%
EBIT growth 1Y56.46%
EBIT growth 3Y25.97%
EBIT growth 5YN/A
EBIT Next Year50.06%
EBIT Next 3Y27.87%
EBIT Next 5Y15.57%
FCF growth 1Y88.07%
FCF growth 3Y16.28%
FCF growth 5YN/A
OCF growth 1Y80.4%
OCF growth 3Y16.96%
OCF growth 5YN/A