Halozyme Therapeutics (HALO)
NASDAQ:HALO
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Halozyme
(NASDAQ:HALO)
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Rating:83Outperform
Price Target:
$82.00
▲(18.34% Upside)
Action:Reiterated
Date:05/14/26
The score is led by strong financial performance (high margins and excellent free-cash-flow generation) and a bullish earnings-call setup (reaffirmed growth guidance and a sizable buyback authorization). Technicals are supportive with the stock trading above key moving averages. Valuation appears reasonable at ~12.7x P/E, while balance-sheet volatility and currently elevated leverage temper the overall rating.
Positive Factors
Cash Generation
Consistently strong operating cash flow (~$677M TTM) and near‑par free cash flow (~$668M TTM) indicate high-quality earnings from royalty/licensing streams. Durable cash generation supports non-dilutive capital allocation (buybacks, debt paydown, reinvestment) and reduces reliance on external financing over the medium term.
Negative Factors
Elevated Leverage
Post-acquisition net leverage near 2.5x raises financial risk and limits flexibility for opportunistic M&A or additional R&D spend. Although management plans to reduce leverage to ~1.2x via buybacks and cash flow, higher debt amplifies downside exposure if royalty growth or timing slips.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistently strong operating cash flow (~$677M TTM) and near‑par free cash flow (~$668M TTM) indicate high-quality earnings from royalty/licensing streams. Durable cash generation supports non-dilutive capital allocation (buybacks, debt paydown, reinvestment) and reduces reliance on external financing over the medium term.
Read all positive factors
Halozyme Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and revealing strategic focus areas.
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and revealing strategic focus areas.
Data provided by:
The Fly
The FlyHalozyme (HALO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.18B
Dividend YieldN/A
Average Volume (3M)1.64M
Price to Earnings (P/E)12.7
Beta (1Y)0.42
Revenue Growth39.12%
EPS Growth-24.20%
CountryUS
Employees350
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)2.92
Shares Outstanding118,613,000
10 Day Avg. Volume2,260,845
30 Day Avg. Volume1,642,324
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)165.22
Price to Sales (P/S)5.77
P/FCF Ratio12.51
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue5.32
Enterprise Value/Gross Profit6.92
Enterprise Value/Ebitda8.36
Forecast
1Y Price Target
$80.48Price Target Upside16.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)8.1
Revenue Forecast (FY)$1.77B
Halozyme Business Overview & Revenue Model
Company Description
Halozyme Therapeutics, Inc. operates as a biopharma technology platform company in the United States, Switzerland, Ireland, Belgium, Japan, and internationally. The company's products are based on the ENHANZE drug delivery technology, a patented r...
How the Company Makes Money
Halozyme primarily makes money by licensing its ENHANZE® drug delivery technology to pharmaceutical partners and earning payments tied to partnered products and development programs. Key revenue streams include: (1) Royalties on net sales of partn...
Halozyme Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based commercial and financial momentum: double-digit growth across top-line, royalties, adjusted EBITDA and EPS with reaffirmed 2026 guidance, new $1B buyback, and multiple near- and long-term revenue drivers (ENHANZE expansion, Hypercon, Surf Bio and new CLAs). Key near-term challenges include higher leverage and increased operating expenses from recent acquisitions, and manufacturing/timing execution risk for Hypercon and continued reliance on co-formulation IP to extend royalty duration. On balance, the positive metrics, clear capital allocation plans and pipeline/deal momentum outweigh these operational and timing risks.Positive Updates
Strong Top-Line Growth
Total revenue of $376.7M (reported as $377M) in Q1 2026, up ~42% year-over-year, driven by broad-based strength across commercial products and product sales to partners.
Negative Updates
Elevated Leverage Following Acquisitions
Net leverage ended the quarter at ~2.5x (attributed to Hypercon and Surf Bio acquisitions). Management projects leverage will fall to ~1.2x by end-2026 after planned buybacks and cash generation.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $376.7M (reported as $377M) in Q1 2026, up ~42% year-over-year, driven by broad-based strength across commercial products and product sales to partners.
Read all positive updates
Company Guidance
On the call Halozyme reaffirmed its full-year 2026 and 2026–2028 financial guidance, backing total 2026 revenue of $1.71–$1.81 billion (up ~22–30% YoY), royalty revenue of $1.13–$1.17 billion (up ~30–35% YoY) and adjusted EBITDA of $1.125–$1.205 billion (including ~$6 million of planned Hypercon/Surf Bio investment); non‑GAAP diluted EPS is guided to $7.75–$8.25 (does not assume share repurchases). Q1 results that support the outlook included revenue of $376.7 million (+42% YoY), royalty revenue of $240.7 million (+43% YoY), adjusted EBITDA of $229.5 million (+42% YoY), Q1 non‑GAAP EPS of $1.60 (GAAP EPS $1.22), and ENHANZE royalties of ~$241 million in the quarter. Management expects ENHANZE royalties to exceed $1 billion in 2026 (30–35% growth over 2025), projects adjusted EBITDA margins >65% (approaching ~70%) during 2026–2028, and announced a $1 billion share‑repurchase authorization with at least $400 million planned in 2026; net leverage was ~2.5x at quarter end and is expected to decline to ~1.2x by year‑end 2026.Halozyme Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
56
Neutral
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.51B | 1.40B | 1.02B | 829.25M | 660.12M | 443.31M |
| Gross Profit | 1.16B | 1.09B | 855.91M | 636.89M | 520.81M | 361.90M |
| EBITDA | 960.61M | 904.34M | 656.54M | 451.95M | 315.51M | 259.04M |
| Net Income | 348.84M | 316.89M | 444.09M | 281.59M | 202.13M | 402.71M |
Balance Sheet | ||||||
| Total Assets | 2.67B | 2.53B | 2.06B | 1.73B | 1.84B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 318.62M | 142.82M | 596.07M | 336.00M | 362.79M | 740.92M |
| Total Debt | 2.14B | 2.14B | 1.51B | 1.50B | 1.51B | 876.67M |
| Total Liabilities | 2.45B | 2.48B | 1.70B | 1.65B | 1.67B | 907.48M |
| Stockholders Equity | 219.64M | 48.81M | 363.82M | 83.81M | 169.80M | 196.95M |
Cash Flow | ||||||
| Free Cash Flow | 667.65M | 644.59M | 468.37M | 373.28M | 235.30M | 297.98M |
| Operating Cash Flow | 677.41M | 651.56M | 479.06M | 388.57M | 240.11M | 299.44M |
| Investing Cash Flow | -458.27M | -545.81M | -262.72M | -96.91M | -487.00M | -406.29M |
| Financing Cash Flow | -83.47M | -85.17M | -218.86M | -407.99M | 362.37M | 77.86M |
Halozyme Technical Analysis
Positive
69.29
Price Trends
65.66
Positive
69.00
Negative
69.09
Negative
Market Momentum
0.72
Negative
55.09
Neutral
50.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HALO, the sentiment is Positive. The current price of 69.29 is above the 20-day moving average (MA) of 66.39, above the 50-day MA of 65.66, and above the 200-day MA of 69.09, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HALO.
Halozyme Risk Analysis
Halozyme disclosed 40 risk factors in its most recent earnings report. Halozyme reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Halozyme Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $8.18B | 12.72 | 126.27% | ― | 39.12% | -24.20% | |
73 Outperform | $6.34B | -33.73 | 7.50% | ― | 12.20% | -64.76% | |
68 Neutral | $23.20B | -64.12 | -6.56% | ― | -89.16% | -84.69% | |
62 Neutral | $7.31B | 39.89 | 5.49% | 0.54% | 0.17% | -15.73% | |
53 Neutral | $19.09B | -3.74 | -36.73% | ― | -29.97% | 6.60% | |
52 Neutral | $12.40B | -33.45 | -58.57% | ― | 47.40% | 32.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HALO
Halozyme
68.52
14.77
27.48%
CORT
Corcept Therapeutics
59.69
-16.40
-21.55%
IONS
Ionis Pharmaceuticals
75.78
42.52
127.84%
TECH
Bio-Techne
47.37
0.34
0.71%
MRNA
Moderna
47.26
20.54
76.87%
ROIV
Roivant Sciences
30.88
19.94
182.27%
Halozyme Corporate Events
Executive/Board ChangesShareholder Meetings
Halozyme Stockholders Back Board, Pay and Auditor Choices
Positive
May 7, 2026
On May 5, 2026, Halozyme Therapeutics, Inc. held its Annual Meeting of Stockholders, with 104,138,244 of 118,474,300 eligible shares represented, to vote on board elections, executive compensation and auditor ratification. Stockholders re-elected ...
Business Operations and StrategyExecutive/Board Changes
Halozyme Appoints New Chief Financial Officer to Drive Growth
Positive
Apr 30, 2026
On April 30, 2026, Halozyme Therapeutics announced the appointment of veteran Johnson Johnson finance executive Darren Snellgrove as its new chief financial officer, effective June 8, 2026, with interim CFO David Ramsay shifting to an advisory ro...
Executive/Board Changes
Halozyme Names David Ramsay Interim Chief Financial Officer
Positive
Mar 12, 2026
On March 12, 2026, Halozyme Therapeutics announced the appointment of David Ramsay as Interim Chief Financial Officer, effective March 23, 2026, tasking the veteran finance executive with overseeing all financial operations while the company compl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.