Halozyme Therapeutics logged a 13.6% change during today's afternoon session, and is now trading at a price of $51.84 per share.
Halozyme Therapeutics returned gains of 33.6% last year, with its stock price reaching a high of $52.74 and a low of $32.78. Over the same period, the stock outperformed the S&P 500 index by 8.9%. More recently, the company's 50-day average price was $41.39. Halozyme Therapeutics, Inc., a biopharma technology platform company, researches, develops, and commercializes proprietary enzymes and devices in the United States, Switzerland, Belgium, Japan, and internationally. Based in San Diego, CA, the Mid-Cap Health Care company has 373 full time employees. Halozyme Therapeutics has not offered a dividend during the last year.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $151,862 | $195,992 | $267,594 | $443,310 | $660,116 | $829,253 |
| Operating Margins | -46% | -34% | 54% | 62% | 41% | 41% |
| Net Margins | -53% | -37% | 48% | 91% | 31% | 34% |
| Net Income (k) | -$80,330 | -$72,240 | $129,085 | $402,710 | $202,129 | $281,594 |
| Net Interest Expense (k) | $18,041 | $11,627 | $20,378 | $7,526 | $16,947 | $18,762 |
| Depreciation & Amort. (k) | $2,388 | $4,068 | $3,284 | $2,997 | $6,493 | $11,083 |
| Diluted Shares (k) | 144,203 | 141,046 | 145,122 | 146,796 | 140,608 | 134,197 |
| Earnings Per Share | -$0.56 | -$0.5 | $0.91 | $2.74 | $1.44 | $2.1 |
| EPS Growth | n/a | 10.71% | 282.0% | 201.1% | -47.45% | 45.83% |
| Avg. Price | $17.93 | $16.54 | $26.41 | $42.22 | $39.76 | $52.37 |
| P/E Ratio | -32.02 | -33.08 | 27.8 | 14.76 | 26.86 | 24.59 |
| Free Cash Flow (k) | -$54,163 | -$89,463 | $52,950 | $297,983 | $235,300 | $373,277 |
| CAPEX (k) | $4,663 | $4,040 | $2,504 | $1,457 | $4,810 | $15,294 |
| EV / EBITDA | -37.98 | -42.2 | 26.43 | 23.2 | 24.67 | 24.29 |
| Total Debt (k) | $34,874 | $402,587 | $397,228 | $876,674 | $1,519,434 | $1,499,248 |
| Net Debt / EBITDA | 0.34 | -4.44 | 1.69 | 2.72 | 4.69 | 3.96 |
| Current Ratio | 2.86 | 6.35 | 1.32 | 7.91 | 5.65 | 6.64 |
Halozyme Therapeutics benefits from rapidly growing revenues and increasing reinvestment in the business, strong operating margins with a positive growth rate, and exceptional EPS growth. The company's financial statements show generally positive cash flows and an excellent current ratio of 6.64. However, the firm has a highly leveraged balance sheet.
an Increase in Expected Earnings Improves Its Value Outlook but Its Shares Are Expensive:
Halozyme Therapeutics has a trailing twelve month P/E ratio of 17.2, compared to an average of 27.53 for the Health Care sector. Based on its EPS guidance of $4.53, the company has a forward P/E ratio of 9.1. According to the 37.1% compound average growth rate of Halozyme Therapeutics's historical and projected earnings per share, the company's PEG ratio is 0.46. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 18.5%. On this basis, the company's PEG ratio is 0.93. This suggests that its shares are undervalued. In contrast, Halozyme Therapeutics is likely overvalued compared to the book value of its equity, since its P/B ratio of 37.09 is higher than the sector average of 3.61. The company's shares are currently trading 854.8% below their Graham number. Ultimately, Halozyme Therapeutics's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Halozyme Therapeutics Has an Analyst Consensus of Little Upside Potential:
The 9 analysts following Halozyme Therapeutics have set target prices ranging from $41.0 to $71.0 per share, for an average of $51.78 with a buy rating. The company is trading 0.1% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Halozyme Therapeutics has an above average percentage of its shares sold short because 9.1% of the company's shares are sold short. Institutions own 99.2% of the company's shares, and the insider ownership rate stands at 1.11%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 14% stake in the company is worth $945,733,078.
