Halozyme Therapeutics, Inc.
Halozyme Therapeutics, Inc. Fundamental Analysis
Halozyme Therapeutics, Inc. (HALO) shows strong financial fundamentals with a PE ratio of 26.45, profit margin of 22.69%, and ROE of 92.67%. The company generates $1.4B in annual revenue with strong year-over-year growth of 22.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 93.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze HALO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHALO demonstrates superior asset utilization.
Valuation Score
ModerateHALO shows balanced valuation metrics.
Growth Score
ExcellentHALO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHALO maintains a strong and stable balance sheet.
Profitability Score
ExcellentHALO achieves industry-leading margins.
Key Financial Metrics
Is HALO Expensive or Cheap?
P/E Ratio
HALO trades at 26.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HALO's PEG of -0.57 indicates potential undervaluation.
Price to Book
The market values Halozyme Therapeutics, Inc. at 171.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.41 times EBITDA. This is generally considered low.
How Well Does HALO Make Money?
Net Profit Margin
For every $100 in sales, Halozyme Therapeutics, Inc. keeps $22.69 as profit after all expenses.
Operating Margin
Core operations generate 58.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $92.67 in profit for every $100 of shareholder equity.
ROA
Halozyme Therapeutics, Inc. generates $12.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Halozyme Therapeutics, Inc. generates strong operating cash flow of $651.14M, reflecting robust business health.
Free Cash Flow
Halozyme Therapeutics, Inc. generates strong free cash flow of $644.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.48 in free cash annually.
FCF Yield
HALO converts 7.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
171.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.93
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How HALO Stacks Against Its Sector Peers
| Metric | HALO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.45 | 29.43 | Better (Cheaper) |
| ROE | 92.67% | 800.00% | Weak |
| Net Margin | 22.69% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 4.66 | 4.64 | Strong Liquidity |
| ROA | 12.55% | -17936.00% (disorted) | Strong |
HALO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Halozyme Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
489.53%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
799.58%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
738.21%
Industry Style: Defensive, Growth, Innovation
High Growth