Halozyme Therapeutics, Inc. (NASDAQ: HALO)

Sector: Healthcare Industry: Biotechnology CIK: 0001159036
P/B 15.03
P/E 12.72
P/S 6.10
Market Cap 7.58 Bn
ROIC (Qtr) 30.60
Div Yield % 0.00
Rev 1y % (Qtr) 22.12
Total Debt (Qtr) 1.51 Bn
Debt/Equity (Qtr) 3.00

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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Analysis

Pros

  • Strong operating cash flow of 611M provides robust 0.40x coverage of total debt 1.51B, indicating excellent debt servicing capability and financial flexibility.
  • Robust free cash flow of 602.40M exceeds capital expenditure of 8.60M by 70.09x, indicating strong organic growth funding capability.
  • Operating cash flow of 611M provides strong 13.15x coverage of stock compensation 46.46M, indicating sustainable incentive practices.
  • Operating cash flow of 611M provides exceptional 34.41x coverage of interest expenses 17.75M, showing strong debt service capability.
  • Strong operating cash flow of 611M provides 3.55x coverage of SG&A expenses 172.31M, showing efficient operational cost management.

Cons

  • Retained earnings of 502.15M provide limited buffer against comprehensive income items of (22.26M), which is -22.56x, indicating elevated exposure to market risks.
  • Operating cash flow of 611M is outpaced by equity issuance of (571.10M) (-1.07 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tax assets of 0 provide limited offset against tax liabilities of 8.22M, which is 0x, indicating potential future cash flow pressure from tax obligations.
  • Other non-current assets of 55.70M provide minimal coverage for long-term debt of 800.07M, which is 0.07x, indicating potential asset-liability mismatch.
  • Fixed assets of 71.42M showing 0.87x ratio to depreciation of 81.79M indicates aging infrastructure requiring significant near-term capital investment.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.06 12.31
EV to Cash from Ops. 14.77 23.25
EV to Debt 5.97 738.44
EV to EBIT 11.81 -9.16
EV to EBITDA 11.01 6.95
EV to Free Cash Flow [EV/FCF] 14.98 21.90
EV to Market Cap 1.19 65.67
EV to Revenue 7.26 227.32
Price to Book Value [P/B] 15.03 22.34
Price to Earnings [P/E] 12.72 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage 43.01 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 16.06 -27.13
Cash and Equivalents Growth (1y) % 171.95 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 49.50 -46.93
EBITDA Growth (1y) % 46.65 -1.68
EBIT Growth (1y) % 53.09 -56.45
EBT Growth (1y) % 55.37 -12.70
EPS Growth (1y) % 59.28 -28.31
FCF Growth (1y) % 53.40 -31.90
Gross Profit Growth (1y) % 35.12 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.56 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.50 3.85
Current Ratio 1.59 7.27
Debt to Equity Ratio 3.00 0.40
Interest Cover Ratio 43.01 841.00
Times Interest Earned 43.01 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 68.00 -18,234.31
EBIT Margin % 61.45 -18,580.80
EBT Margin % 60.02 -19,488.74
Gross Margin % 84.50 -7.59
Net Profit Margin % 47.90 -19,439.22