Now trading at a price of $109.62, Horizon Therapeutics Public has moved 0.8% so far today.
Horizon Therapeutics Public shares moved -3.4% 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 4.0%. As of January 2022, the company's 50-day average price is $110.0. Horizon Therapeutics Public Limited Company, a biotechnology company, focuses on the discovery, development, and commercialization of medicines that address critical needs for people impacted by rare, autoimmune, and severe inflammatory diseases. The large-cap Health Care company has 2,115 full time employees and is based in Dublin, Ireland. Horizon Therapeutics Public has not offered any dividends in the last year.
Snapshot of the Company's Decent Operating Margins:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,300 | $2,200 | $3,226 | $3,629 |
| Revenue Growth | n/a | 69.26% | 46.63% | 12.48% |
| Gross Margins | 72.1% | 75.8% | 75.4% | 74.6% |
| Gross Margins Growth | n/a | 5.13% | -0.53% | -1.06% |
| Operating Margins | 10.6% | 22.0% | 17.2% | 20.1% |
| Operating Margins Growth | n/a | 107.55% | -21.82% | 16.86% |
| Net Margins | 44.08% | 17.71% | 16.57% | 14.37% |
| Net Margins Growth | n/a | -59.82% | -6.44% | -13.28% |
| Earnings Per Share | $2.9 | $1.81 | $2.27 | $2.22 |
| EPS Growth | n/a | -37.59% | 25.41% | -2.2% |
| Diluted Shares (MM) | 205 | 215 | 236 | 228 |
| Free Cash Flow (MM) | $408 | $356 | $909 | $1,132 |
| FCF Growth | n/a | -12.89% | 155.48% | 24.47% |
| Capital Expenditures (MM) | -$18 | -$200 | -$126 | -$126 |
| Net Debt / EBITDA | 0.74 | nan | 1.09 | 0.2 |
Horizon Therapeutics Public Is Fairly Priced at Current Levels:
Compared to the Health Care sector's average of 24.45, Horizon Therapeutics Public has a trailing twelve month P/E ratio of 49.4 and, according to its EPS guidance of 6.59, an expected P/E ratio of 16.6. Horizon Therapeutics Public's PEG ratio is 2.17 based on its 22.8% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Horizon Therapeutics Public's P/B ratio is 4.9 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 222.5% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.3 * 22.321) = $33.99
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.
Horizon Therapeutics Public Benefits From Positive Market Indicators:
8 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 hold. At the current price of $109.62, HZNP is trading -9.03% away from its average analyst target price of $120.5 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.8% of the company's shares are tied to short positions. Institutions own 96.4% of Horizon Therapeutics Public's shares, while the insider ownership rate stands at 1.17%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $2,327,901,669.
