Halozyme Therapeutics, Inc. (NASDAQ: HALO)

Sector: Healthcare Industry: Biotechnology CIK: 0001159036
Market Cap 9.66 Bn
P/B 197.90
P/E 30.48
P/S 6.92
ROIC (Qtr) 31.31
Div Yield % 0.00
Rev 1y % (Qtr) 51.60
Total Debt (Qtr) 2.14 Bn
Debt/Equity (Qtr) 43.89
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About

Halozyne Therapeutics, Inc., often recognized by its stock symbol HALO, operates within the biopharmaceutical industry. The company specializes in developing and commercializing innovative solutions aimed at enhancing patient experiences and outcomes for both emerging and established therapies. Halozyne's primary business activities revolve around its unique ENHANZE technology. This proprietary enzyme has the capability to temporarily break down hyaluronan, a naturally occurring carbohydrate that forms a barrier in the subcutaneous space. This...

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Investment thesis

Bull case

  • Operating cash flow of 651.56M provides strong 12.64x coverage of stock compensation 51.56M, indicating sustainable incentive practices.
  • Operating cash flow of 651.56M provides exceptional 35.95x coverage of interest expenses 18.13M, showing strong debt service capability.
  • Strong operating cash flow of 651.56M provides 3.15x coverage of SG&A expenses 207.09M, showing efficient operational cost management.
  • Robust free cash flow of 644.59M exceeds capital expenditure of 6.97M by 92.48x, indicating strong organic growth funding capability.
  • Operating cash flow of 651.56M provides solid 3.68x coverage of current liabilities 177.09M, showing strong operational health.

Bear case

  • Operating cash flow of 651.56M barely covers its investment activities of (545.81M), with a coverage ratio of -1.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (545.81M) provide weak support for R&D spending of 366.38M, which is -1.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 136.42M provide limited coverage of acquisition spending of (1.01B), which is -0.13x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 441.27M relative to inventory of 176.47M (2.50 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 651.56M is outpaced by equity issuance of (320.54M) (-2.03 ratio), indicating concerning reliance on equity markets for funding operations.

Product and Service Breakdown of Revenue (2025)

Concentration Risk Type Breakdown of Revenue (2025)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.26 11.06
EV to Cash from Ops. EV/CFO 16.50 26.32
EV to Debt EV to Debt 5.02 762.61
EV to EBIT EV/EBIT 22.17 -13.49
EV to EBITDA EV/EBITDA 19.30 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF 16.68 25.66
EV to Market Cap EV to Market Cap 1.11 203.37
EV to Revenue EV/Rev 7.70 156.31
Price to Book Value [P/B] P/B 197.90 20.59
Price to Earnings [P/E] P/E 30.48 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.14
Interest Coverage Int. cover (Qtr) 26.76 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 34.84 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 17.76 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -28.20 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -11.97 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -15.69 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -16.20 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -24.57 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 37.62 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 36.44 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.77 3.92
Current Ratio Curr Ratio (Qtr) 4.66 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 43.89 0.48
Interest Cover Ratio Int Coverage (Qtr) 26.76 956.66
Times Interest Earned Times Interest Earned (Qtr) 26.76 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 41.00 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) 34.73 -18,246.34
EBT Margin % EBT Margin % (Qtr) 33.43 -19,108.08
Gross Margin % Gross Margin % (Qtr) 83.60 -10.30
Net Profit Margin % Net Margin % (Qtr) 22.70 -19,056.96