Horizon Therapeutics Public Limited Company
Horizon Therapeutics Public Limited Company Fundamental Analysis
Horizon Therapeutics Public Limited Company (HZNP) shows weak financial fundamentals with a PE ratio of 51.10, profit margin of 14.37%, and ROE of 10.70%. The company generates $3.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HZNP's fundamental strength across five key dimensions:
Efficiency Score
WeakHZNP struggles to generate sufficient returns from assets.
Valuation Score
ModerateHZNP shows balanced valuation metrics.
Growth Score
ModerateHZNP shows steady but slowing expansion.
Financial Health Score
ExcellentHZNP maintains a strong and stable balance sheet.
Profitability Score
WeakHZNP struggles to sustain strong margins.
Key Financial Metrics
Is HZNP Expensive or Cheap?
P/E Ratio
HZNP trades at 51.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HZNP's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Horizon Therapeutics Public Limited Company at 5.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.68 times EBITDA. This signals the market has high growth expectations.
How Well Does HZNP Make Money?
Net Profit Margin
For every $100 in sales, Horizon Therapeutics Public Limited Company keeps $14.37 as profit after all expenses.
Operating Margin
Core operations generate 17.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.70 in profit for every $100 of shareholder equity.
ROA
Horizon Therapeutics Public Limited Company generates $5.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Horizon Therapeutics Public Limited Company generates strong operating cash flow of $1.26B, reflecting robust business health.
Free Cash Flow
Horizon Therapeutics Public Limited Company generates strong free cash flow of $1.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.94 in free cash annually.
FCF Yield
HZNP converts 4.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
51.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HZNP Stacks Against Its Sector Peers
| Metric | HZNP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 51.10 | 29.28 | Worse (Expensive) |
| ROE | 10.70% | 820.00% | Weak |
| Net Margin | 14.37% | -19731.00% (disorted) | Strong |
| Debt/Equity | 0.51 | 0.26 | Weak (High Leverage) |
| Current Ratio | 3.85 | 4.69 | Strong Liquidity |
| ROA | 5.72% | -17993.00% (disorted) | Weak |
HZNP outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Horizon Therapeutics Public Limited Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation