Halozyme (HALO) AI Stock Analysis

• Market Cap: $6.64B
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.58
• Revenue Growth: 25.65%
• EPS Growth: 57.10%
• Country: US
• Employees: 350
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): 1.11
• Shares Outstanding: 123,221,000
• 10 Day Avg. Volume: 1,670,452
• 30 Day Avg. Volume: 2,847,995
• PEG Ratio: -0.80
• Price to Book (P/B): 45.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.09
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 10.21
• Enterprise Value/Ebitda: 3.73
• 1Y Price Target: $65.67
• Price Target Upside: 21.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $61.00 ▲(13.13%Upside)

Halozyme's strong earnings performance and increased guidance are the primary drivers of its high score. Despite a bearish technical outlook, the company's impressive financial performance and strategic initiatives like the share repurchase plan support a positive overall evaluation.

Positive Factors

Financial Guidance

Halozyme raised FY25 and multi-year guidance through 2028 to better reflect the growing momentum of multiple recent launches which remain underappreciated.

Market Expansion

Approval of Darzalex Faspro would mark the first medicine to treat smoldering multiple myeloma, which could significantly expand the market.

Product Approval

The European Commission granted approval to the subcutaneous version of Bristol-Myers Squibb's PD-1 inhibitor, Opdivo, which leverages Halozyme's ENHANZE to enable easier and faster administration.

Negative Factors

Commercial Risk

Risks include commercial risk with ENHANZE, particularly in the multiple myeloma indication, which is dynamic and rapidly evolving, and partnership risk, specifically with respect to Janssen.

Pricing Risk

A research firm suggested that drugs using Halozyme's Enhanze additive may not be seen as new drugs, leading to potential earlier price negotiations.

Regulatory Risk

Halozyme shares have tumbled due to a note from Leerink Partners interpreting recent draft guidance from the US CMS.

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 recombinant human hyaluronidase enzyme (rHuPH20) that enables the subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids. Its flagship product is Hylenex recombinant, a formulation of rHuPH20 to facilitate subcutaneous fluid administration for achieving hydration to enhance the dispersion and absorption of other injected drugs in subcutaneous urography and to improve resorption of radiopaque agents. The company also develops Perjeta; RITUXAN HYCELA and MabThera SC for the treatment of non-Hodgkin lymphoma and chronic lymphocytic leukemia (CLL); RITUXAN SC for patients with CLL; and HYQVIA for the treatment of immunodeficiency disorders. In addition, it is developing Tecentriq for non-small cell lung cancer; OCREVUS for multiple sclerosis; DARZALEX for the treatment of patients with amyloidosis, smoldering myeloma, and multiple myeloma; nivolumab for the treatment of solid tumors; ARGX-113, a human neonatal Fc receptor; ARGX-117 to treat autoimmune diseases; and BMS-986179, an anti-CD-73 antibody. The company has collaborations with F. Hoffmann-La Roche, Ltd.; Hoffmann-La Roche, Inc.; Baxalta US Inc.; Baxalta GmbH; Pfizer Inc.; Janssen Biotech, Inc.; AbbVie, Inc.; Eli Lilly and Company; Bristol-Myers Squibb Company; Alexion Pharma Holding; ARGENX BVBA; Horizon Therapeutics plc; National Institute of Allergy and Infectious Diseases; Centre for the AIDS Programme of Research in South Africa; and ViiV Healthcare Limited for small and large molecule targets for the treatment and prevention of HIV. Halozyme Therapeutics, Inc. was founded in 1998 and is based in San Diego, California.

How the Company Makes Money

Halozyme primarily generates revenue through collaborative agreements with global pharmaceutical companies, licensing its ENHANZE drug delivery technology. The company earns money through upfront licensing fees, milestone payments, and royalties on the net sales of its partners' products that utilize the ENHANZE platform. These partnerships are crucial to Halozyme's business model, as they allow the company to leverage its technology across a broad range of therapeutic areas without bearing the full cost of drug development. Additionally, Halozyme may engage in research and development collaborations, further contributing to its revenue streams.

Halozyme Financial Statement Overview

Summary

Halozyme demonstrates robust financial health with strong revenue growth and profitability. The income statement reflects impressive financial performance, but the high debt-to-equity ratio requires careful leverage management.

Income Statement

Halozyme exhibits strong and consistent growth in revenue with a solid revenue growth rate of 6.79% for TTM. The gross profit margin is robust at 81.82%, and net profit margin is healthy at 44.77% which indicates efficient cost management. EBIT and EBITDA margins are also strong at 55.10% and 64.52% respectively, highlighting operational efficiency and profitability. Overall, the income statement reflects impressive financial performance and growth trajectory.

Balance Sheet

The company maintains a high debt-to-equity ratio of 3.13, indicating significant leverage which could pose a risk if not managed carefully. However, a return on equity (ROE) of 100.67% demonstrates excellent profitability relative to equity. The equity ratio of 21.96% suggests a moderate level of equity financing, indicating a balanced approach towards asset financing. While profitability metrics are strong, the high leverage requires careful monitoring.

Cash Flow

Halozyme's free cash flow growth rate is 5.85%, indicating steady cash generation. The operating cash flow to net income ratio is 1.04, suggesting that net income is well-supported by cash flows. The free cash flow to net income ratio of 1.02 further reinforces the company's ability to convert earnings into cash effectively. Overall, the cash flow statement indicates solid cash management and operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.08B	1.02B	829.25M	660.12M	443.31M	267.59M
	Gross Profit
887.05M	855.91M	636.89M	520.81M	361.90M	224.23M
	EBIT
597.47M	551.48M	337.57M	267.53M	275.90M	144.25M
	EBITDA
699.60M	656.54M	451.95M	315.51M	259.04M	152.96M
	Net Income Common Stockholders
485.36M	444.09M	281.59M	202.13M	402.71M	129.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
747.92M	596.07M	336.00M	362.79M	740.92M	368.01M
	Total Assets
2.20B	2.06B	1.73B	1.84B	1.10B	579.92M
	Total Debt
1.51B	1.51B	1.50B	1.51B	876.67M	397.23M
	Net Debt
1.33B	1.39B	1.38B	1.27B	757.96M	249.53M
	Total Liabilities
1.71B	1.70B	1.65B	1.67B	907.48M	428.88M
	Stockholders Equity
482.27M	363.82M	83.81M	169.80M	196.95M	151.05M
Cash Flow		Free Cash Flow
495.76M	468.37M	373.28M	235.30M	297.98M	52.95M
	Operating Cash Flow
503.86M	479.06M	388.57M	240.11M	299.44M	55.45M
	Investing Cash Flow
-270.46M	-262.72M	-96.91M	-487.00M	-406.29M	78.35M
	Financing Cash Flow
-221.69M	-218.86M	-407.99M	362.37M	77.86M	-106.28M

Halozyme Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HALO, the sentiment is Negative. The current price of 53.92 is below the 20-day moving average (MA) of 54.18, below the 50-day MA of 57.33, and below the 200-day MA of 56.02, indicating a bearish trend. The MACD of -0.96 indicates Negative momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HALO.

Halozyme Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	76 Outperform	$6.64B	14.31	147.06%	―	25.65%	57.10%
CORT	74 Outperform	$7.43B	60.81	21.52%	―	30.93%	11.78%
JAZZ	73 Outperform	$6.57B	14.63	12.25%	―	5.76%	49.58%
MDGL	56 Neutral	$6.56B	―	-50.16%	―	―	21.83%
ROIV	56 Neutral	$7.70B	1.93	-8.56%	―	-38.94%	-104.46%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ASND	52 Neutral	$10.31B	―	357.68%	―	10.69%	34.71%

Halozyme Corporate Events

Halozyme Announces Retirement of Chief Technical Officer

On March 17, 2025, Michael J. LaBarre, Senior Vice President and Chief Technical Officer of Halozyme Therapeutics, Inc., announced his retirement, effective immediately. The company acknowledged his significant contributions to their ENHANZE® drug delivery technology, marking a notable transition in their leadership team.