Briefing From The Editor -- HZNP Stock

Horizon Therapeutics Public logged a -0.29% change during today's afternoon session, and is now trading at a price of $109.73 per share. The S&P 500 index moved 0.36% and the Nasdaq posted a 0.69% change.

Horizon Therapeutics Public shares moved 10.74% over the last 52 weeks, with a high of $117.49 and a low of $57.84. During this time, the stock outperformed the S&P 500 index by 14.44%. As of January 2022, the company's 50-day average price is $112.0. Horizon Therapeutics Public Limited Company, a biotechnology company, is focused on the discovery, development and commercialization of drugs that address the critical needs of people affected by rare, autoimmune and serious inflammatory diseases. The large-cap Health Care company is based in Dublin, Ireland.

Exceptional EPS Growth with Low Leverage Levels:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $1,154 $2,109 $3,144 $3,628
Revenue Growth n/a 82.7% 49.11% 15.38%
Gross Margins 81.26% 79.09% 77.34% 74.67%
Gross Margins Growth n/a -2.67% -2.21% -3.45%
Operating Margins 10.97% 23.24% 17.27% 17.02%
Operating Margins Growth n/a 111.85% -25.69% -1.45%
Earnings Per Share $3.05 $1.76 $2.35 $2.29
EPS Growth n/a -42.3% 33.52% -2.55%
Diluted Shares (MM) 188 221 227 227
Free Cash Flow (MM) $408 $386 $959 $1,194
FCF Growth n/a -5.54% 148.47% 24.53%
Capital Expenditures (MM) $18 $170 $77 $64
Net Debt / EBITDA n/a 1.27 1.14 0.23

Horizon Therapeutics Public Is Currently Fairly Valued:

Compared to the Health Care sector's average of 24.45, Horizon Therapeutics Public has a trailing twelve month P/E ratio of 45.16 and, according to its EPS guidance of 6.77, an expected P/E ratio of 16.21.

Horizon Therapeutics Public's P/B ratio is 5.1 compared to its sector average of 4.16. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 302.53% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 1.48 * 22.32) = $27.26

Horizon Therapeutics Public's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.

10 analysts are following Horizon Therapeutics Public and have set target prices ranging from $116.5 to $140.0 per share. On average, they have given the company a rating of buy. At the current price of $109.73, HZNP is trading -5.52% away from its average analyst target price of $116.14 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.