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Halozyme
(NASDAQ:HALO)
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Rating:83Outperform
Price Target:
$91.00
▲(31.33% 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
High-quality cash generation
Halozyme converts revenue to cash at an unusually high rate: TTM operating cash flow of ~$677M and free cash flow of ~$668M, with FCF roughly matching net income. That durable cash conversion supports buybacks, debt paydown and disciplined reinvestment over multiple years.
Negative Factors
Elevated leverage after acquisitions
Leverage rose to ~2.5x following the Hypercon and Surf Bio deals, which constrains flexibility for a capital‑intensive biotech. Higher net debt increases risk if growth or deal timing slips, and diminishes optionality on M&A, buybacks and R&D unless deleveraging proceeds as planned.
Read all positive and negative factors
Positive Factors
Negative Factors
High-quality cash generation
Halozyme converts revenue to cash at an unusually high rate: TTM operating cash flow of ~$677M and free cash flow of ~$668M, with FCF roughly matching net income. That durable cash conversion supports buybacks, debt paydown and disciplined reinvestment over multiple years.
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.
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The Fly
The FlyHalozyme (HALO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.28B
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)26.8
Beta (1Y)0.29
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. Volume1,727,929
30 Day Avg. Volume1,965,084
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 Cap1.07
Enterprise Value/Revenue6.61
Enterprise Value/Gross Profit8.59
Enterprise Value/Ebitda15.98
Forecast
1Y Price Target
$81.00Price Target Upside16.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)8.11
Revenue Forecast (FY)$1.77B
Halozyme Business Overview & Revenue Model
Company Description
Halozyme Therapeutics, Inc. is a biopharmaceutical company headquartered in San Diego, California, with operations spanning the United States, Switzerland, Ireland, Belgium, Japan, and other international markets. At its core is the proprietary EN...
How the Company Makes Money
Halozyme primarily makes money by licensing its ENHANZE® drug delivery technology to biopharmaceutical companies and earning payments tied to the development, approval, and commercial sales of partner products that use the technology. Key revenue ...
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 | 623.82M | 573.05M | 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
68.65
Positive
68.64
Positive
69.09
Positive
Market Momentum
1.88
Negative
73.15
Negative
93.03
Negative
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 below the 20-day moving average (MA) of 71.15, above the 50-day MA of 68.65, and above the 200-day MA of 69.09, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 73.15 is Negative, neither overbought nor oversold. The STOCH value of 93.03 is Negative, 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 | $9.28B | 26.80 | 126.27% | ― | 39.12% | -24.20% | |
73 Outperform | $9.33B | 193.11 | 7.50% | ― | 12.20% | -64.76% | |
70 Outperform | $11.06B | 99.54 | 5.49% | 0.54% | 0.17% | -15.73% | |
68 Neutral | $25.45B | -78.07 | -6.85% | ― | -89.16% | -84.69% | |
57 Neutral | $13.10B | -40.02 | -58.57% | ― | 47.40% | 32.85% | |
53 Neutral | $27.79B | -8.54 | -36.73% | ― | -29.97% | 6.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HALO
Halozyme
77.01
23.17
43.03%
CORT
Corcept Therapeutics
88.48
17.14
24.03%
IONS
Ionis Pharmaceuticals
79.19
35.60
81.67%
TECH
Bio-Techne
71.00
18.14
34.32%
MRNA
Moderna
72.50
42.22
139.43%
ROIV
Roivant Sciences
35.03
24.06
219.33%
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...
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.