116.3 USD
+0.05 (+0.04%)
At close: Oct 5, 2023
116.34 USD
+0.04 (+0.03%)
After Hours: 10/5/2023, 8:25:26 PM
Taking everything into account, HZNP scores 6 out of 10 in our fundamental rating. HZNP was compared to 524 industry peers in the Biotechnology industry. HZNP has an excellent financial health rating, but there are some minor concerns on its profitability. HZNP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HZNP was profitable.
- In the past year HZNP had a positive cash flow from operations.
1.2 Ratios
- HZNP's Return On Assets of 4.71% is amongst the best of the industry. HZNP outperforms 95.21% of its industry peers.
- With an excellent Return On Equity value of 8.25%, HZNP belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
- The Return On Invested Capital of HZNP (5.35%) is better than 95.87% of its industry peers.
- HZNP had an Average Return On Invested Capital over the past 3 years of 6.68%. This is significantly below the industry average of 18.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.25% | ||
| ROIC | 5.35% |
ROA(3y)6.1%
ROA(5y)6.05%
ROE(3y)10.47%
ROE(5y)10.88%
ROIC(3y)6.68%
ROIC(5y)4.8%
1.3 Margins
- With an excellent Profit Margin value of 12.02%, HZNP belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
- In the last couple of years the Profit Margin of HZNP has declined.
- HZNP has a Operating Margin of 15.58%. This is amongst the best in the industry. HZNP outperforms 96.53% of its industry peers.
- HZNP's Operating Margin has improved in the last couple of years.
- HZNP has a better Gross Margin (75.21%) than 84.49% of its industry peers.
- HZNP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 12.02% | ||
| GM | 75.21% |
OM growth 3Y23.86%
OM growth 5YN/A
PM growth 3Y-31.18%
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y6.97%
2. Health
2.1 Basic Checks
- HZNP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HZNP remains at a similar level compared to 1 year ago.
- Compared to 1 year ago, HZNP has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.10 indicates that HZNP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.10, HZNP belongs to the best of the industry, outperforming 81.35% of the companies in the same industry.
- HZNP has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as HZNP would need 2.67 years to pay back of all of its debts.
- HZNP has a better Debt to FCF ratio (2.67) than 95.54% of its industry peers.
- HZNP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.48, HZNP is doing worse than 74.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 5.1 |
ROIC/WACC0.75
WACC7.16%
2.3 Liquidity
- A Current Ratio of 4.27 indicates that HZNP has no problem at all paying its short term obligations.
- HZNP's Current ratio of 4.27 is in line compared to the rest of the industry. HZNP outperforms 41.58% of its industry peers.
- HZNP has a Quick Ratio of 4.09. This indicates that HZNP is financially healthy and has no problem in meeting its short term obligations.
- HZNP has a Quick ratio (4.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.09 |
3. Growth
3.1 Past
- HZNP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.39%.
- Measured over the past years, HZNP shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.01% on average per year.
- Looking at the last year, HZNP shows a decrease in Revenue. The Revenue has decreased by -4.42% in the last year.
- Measured over the past years, HZNP shows a very strong growth in Revenue. The Revenue has been growing by 28.00% on average per year.
EPS 1Y (TTM)-19.39%
EPS 3Y34.76%
EPS 5Y33.01%
EPS Q2Q%12.15%
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y40.8%
Revenue growth 5Y28%
Sales Q2Q%7.82%
3.2 Future
- Based on estimates for the next years, HZNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.92% on average per year.
- HZNP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.94% yearly.
EPS Next Y-5.01%
EPS Next 2Y8.89%
EPS Next 3Y11.9%
EPS Next 5Y15.92%
Revenue Next Year5.55%
Revenue Next 2Y9.53%
Revenue Next 3Y10.34%
Revenue Next 5Y9.94%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.90, the valuation of HZNP can be described as expensive.
- Based on the Price/Earnings ratio, HZNP is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
- HZNP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 20.14, which indicates a rather expensive current valuation of HZNP.
- HZNP's Price/Forward Earnings ratio is rather cheap when compared to the industry. HZNP is cheaper than 96.53% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HZNP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.9 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HZNP is valued cheaply inside the industry as 94.88% of the companies are valued more expensively.
- 96.37% of the companies in the same industry are more expensive than HZNP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.79 | ||
| EV/EBITDA | 27.94 |
4.3 Compensation for Growth
- HZNP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y8.89%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
- No dividends for HZNP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HORIZON THERAPEUTICS PLC / HZNP FAQ
What is the fundamental rating for HZNP stock?
ChartMill assigns a fundamental rating of 6 / 10 to HZNP.
What is the valuation status for HZNP stock?
ChartMill assigns a valuation rating of 5 / 10 to HORIZON THERAPEUTICS PLC (HZNP). This can be considered as Fairly Valued.
How profitable is HORIZON THERAPEUTICS PLC (HZNP) stock?
HORIZON THERAPEUTICS PLC (HZNP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HORIZON THERAPEUTICS PLC (HZNP) stock?
The Price/Earnings (PE) ratio for HORIZON THERAPEUTICS PLC (HZNP) is 25.9 and the Price/Book (PB) ratio is 5.01.