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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Halozyme Therapeutics, Inc. (XNAS:HALO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
HALO
Name:
HALOZYME THERAPEUTICS, INC. (XNAS:HALO)
Sector:
47.31M
Industry:
Biotechnology
CEO:
Dr. Helen Torley
Total Employees:
145
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -317.58% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF HALOZYME THERAPEUTICS, INC.(HALO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BIOTECHNOLOGY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
38.92
One Month Price Target:
$39.19
Six Month Price Target :
$40.53
Likely Price in One Year's Time:
Ticker:
$42.13
Likely Trading Range Today Under (Normal Volatility)
$38.8
Price Upper limit ($) :
$39.15
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$36.84
This week:
$34.27
This month :
$29.63
Other Primary facts
Market Cap:
5.31B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
137.78M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.49%
-11.01%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$48.55
$44.05
$29.29
$33.79
Medium risk (<10%) entry points
Buy Call
Sell Call
$42.58
Buy Put:
Sell Put:
$41.62
$35.25
$36.22
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
HALO
Sharpe Ratio:
4.98%
Comparison:
HALO, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 156.28% higher than the industry
& ratio is 118.63% higher than the market/S&P 500 average
Average Returns/Yield of
HALO
Daily returns:
0.14%
Weekly returns:
0.71%
Monthly returns:
2.84%
Yearly returns:
25.22%
Comparison of returns:
Average annual returns/yield (last 3 years) is 34.92% above industry average
Classification:
HALO, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.19
Statistical test of Returns:
HALO has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.67%
Weekly Volatility:
5.97%
Monthly Volatility:
11.93%
Yearly Volatility:
41.33%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.10%
Volatility in last five trading days has been -21.43% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.34%
Weekly VaR:
-11.93%
Monthly VaR:
-23.87%
How Much Can the price of
HALO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-19%
Worst case (decline):
-82.69%
This translates to price declining to:
$31.34
This translates to price declining to:
$6.74
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
HALO is a 68.47% riskier investment compared to the market/S&P 500 & is 44.33% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -43.88% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
HALO
Beta in relation to market/S&P 500--1.23
Expected beta in 1 year's time:
0.922
Expected beta in 3 year's time:
1.304
Unlevered (debt free) Beta:
0.225
Beta in relation to Nasdaq (XNAS):
0.789
Beta in relation to all global stocks::
0.531
Beta Comparison & Analysis
Beta of competitors/peers::
1.037
Beta is 18.53% higher than peers
Average Industry Beta:
1.152
Beta is 6.68% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
263.91%
Sustainable growth rate is 403.23% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.225
Alpha is 58.38% above industry average alpha yield
Alpha is 1430% higher than market/& is unsustainably high
Analysis of Cost of Capital of
HALO
Equity cost of capital:
0.116
Equity cost of capital is 4.78% above industry mean WACC
Unlevered (without debt) cost of capital:
2.12%
Before-tax cost of debt:
0.83%
After-tax cost of debt:
0.66%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.66%
WACC is -63.28% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$3.42
Revenue growth rate per share of (3Y):
20.6
Annual revenue growth rate is -65.93% below industry average
EPS:
$2.98
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$2.06
-
-
Debt per share
$5.72
EBITDA per share
$2.22
Valuation Analysis Today of
HALO
P/E Ratio:
15.42
P/E Ratio of Competitors/Peers:
192.1
P/E ratio is -91.97% lower than main peers & is -82.82% lower than the industry
Stock price/value with industry average P/E ratio: $267.39
HALO is -85.44% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
11.37
Price to sales ratio is -71.93% below the industry mean
P/B (Price to book value ratio):
20.6
Price to free cash flow: 18.85
Price to free cash flow ratio is -55.52% lower than the industry
Net income growth rate (3Y):
-606.89%
Net income growth rate is -959.83% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
302.82%
Net debt to equity ratio:
291.95%
Debt to assets ratio:
67.81%
Net debt to assets ratio:
65.37%
Debt-to-asset ratio is 60.84% above industry average
Ability to repay debt:
Interest coverage ratio:
41.69
Interest coverage ratio is -135.23% less than industry average
Looking forward:
Debt growth rate:
120.70%
Annual debt growth is -11% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.494
Statistical significance of correlation:
HALO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.34
Stock price is 45.23% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.34
Correlation of price movement with Nasdaq (^IXIC):
-0.041
Covariance of price movement with the market:
-0.064
Kurtosis
2.44
Returns are more concentrated around the mean (platykurtic), compared to a normal distribution
Skewness of returns:
0.299
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
HALO
Gross Profit Margin Ratio:
332%
Operating Profit Margin Ratio:
63.80%
Operating profit margin is -114.88% lower than the industry
Net Profit Margin Ratio:
332%
Effective Tax Rate:
-47.51%
Effective tax rate is -932.91% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
167.11%
Return on equity (ROE) is -391.48% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
37.42%
Return on assets (ROA) is -283.41% lower than the industry
Financial Leverage:
3.1x
Current Ratio:
8.85
Current ratio is 9.35% above industry average
Cash Conversion Cycle (days):
127.6
Cash conversion cycle is -76.06% below industry average
The remaining useful life of property plant & equipment is: 6.0 years
Stock based compensation to net income ratio:
1.09%
In-depth Efficiency Analysis
Revenue generated per employee:
3.3M
Each employee generates 102% more revenue than industry average revenue per employee
EBITDA generated per employee:
2.1M
Each employee generates 446% more EBITDA than industry average revenue per employee
Profit generated per employee:
3.0M
Each employee generates 2244% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
326.3K
Each employee generates 122% more free cash flow than industry average revenue per employee
Assets/Capital per employee
1.2M
Each employee generates 122% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 4.19%
Growth rate in R&D investment/expenditure is -216.91% lower than the industry
Competitors/Peer firms of
HALO
ZAI LAB LIMITED (XNAS:ZLAB)
CRISPR Therapeutics Ltd (XNAS:CRSP)
QUIDELORTHO CORPORATION (XNAS:QDEL)
DENALI THERAPEUTICS INC. (XNAS:DNLI)
ACADIA HEALTHCARE COMPANY, INC. (XNAS:ACHC)
ULTRAGENYX PHARMACEUTICAL INC. (XNAS:RARE)
INTEGRA LIFESCIENCES HOLDINGS CORPORATION (XNAS:IART)
PREMIER, INC. (XNAS:PINC)
ICU MEDICAL, INC. (XNAS:ICUI)
Current Analyst Ratings
Strong buy�8%
Buy�21%
Hold�8%
Sell�0%
Strong sell�4%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
471.57M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
79.12M
392.45M
38.52M
-
53.10M
-
-
91.61M
-
7.32M
3.04M
305.20M
300.84M
434.92M
294.84M
- 140082.00K
434.92M
Statement of Cash Flow
Date:
Period:
778.00K
Differed Income Tax :
12.93M
Stock Based Compensation :
4.74M
Change in Working Capital :
- 31667.00K
Accounts Receivables:
- 22787.00K
Other Working Capital:
-
Other Non-Cash Items:
910.00K
Net Cash Provided by Operating Activities:
47.80M
Investments in PP&E:
- 490.00K
Net Acquisitions:
-
Purchases of Investments:
- 184815.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
117.84M
668.31M
786.14M
113.76M
47.76M
41.03M
988.69M
8.51M
-
-
-
142.51M
22.54M
173.56M
-
1.16B
1.27M
89.55M
-
1.75M
19.13M
111.69M
788.10M
171.00K
790.30M
-
901.99M
138.00K
1.20M
- 2791.0K
261.71M
March 31, 2022 at 6:00:00 AM
170.73M
260.26M
1.16B
-
877.65M
759.8M
136.00M
-
- 49305.00K
-
-
-
-
624.00K
624.00K
-
- 884.00K
118.34M
119.22M
47.80M
- 490.00K
47.31M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
HALO
2023
2024
2025
2026
2027
$42.34
$195.87
$212.05
$229.56
$248.51