Halozyme (HALO) AI Stock Analysis

• Market Cap: $7.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.53
• Revenue Growth: 34.97%
• EPS Growth: 71.10%
• Country: US
• Employees: 350
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): 1.54
• Shares Outstanding: 116,966,000
• 10 Day Avg. Volume: 2,375,262
• 30 Day Avg. Volume: 1,703,931
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 6.29
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 9.37
• 1Y Price Target: $70.90
• Price Target Upside: 2.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: $74.00 ▲(7.31% Upside)

Halozyme's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, high profitability margins, and raised guidance indicate a strong market position. However, high leverage and potential regulatory and litigation challenges pose risks. The lack of detailed technical analysis data limits the assessment of market trends.

Positive Factors

Earnings Guidance

HALO's 2025 EPS guidance increased by 20% since January, driven by partnered products and cost discipline.

Financial Performance

Halozyme's 2Q25 financial results beat top- and bottom-line forecasts, with total revenue for the period significantly higher than expected.

Market Demand

The revenue beat was attributed to a strong increase in royalty revenues, signaling the healthy market appetite for Halozyme's coformulated products.

Negative Factors

Legal Challenges

A court date is set for June 2026 for Merck's challenges to Halozyme patents, with Halozyme's lawsuit against Merck appearing as a significant catalyst.

Regulatory Risks

Regulatory risks persist, with potential clarity on CMS draft guidance expected.

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 generates revenue primarily through collaboration agreements and licensing deals with major pharmaceutical companies. The company enters into partnerships where it licenses its ENHANZE technology for use in the development of drug products, receiving upfront payments, milestone payments based on the achievement of development and regulatory milestones, and royalties on net sales of products that incorporate its technology. Significant partnerships with companies such as Roche, Pfizer, and others contribute to its earnings, as these collaborations often involve substantial financial commitments and ongoing revenue streams. Additionally, Halozyme may receive income from the sale of its proprietary products and services within the biotechnology market.

Halozyme Financial Statement Overview

Summary

Halozyme demonstrates robust financial health with strong revenue growth and profitability. The income statement shows impressive margins and growth rates, while cash flow management is solid. However, the high debt-to-equity ratio poses a leverage risk that requires careful monitoring.

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	1.18B	1.02B	829.25M	660.12M	443.31M	267.59M
Gross Profit	992.43M	855.91M	636.89M	520.81M	361.90M	224.23M
EBITDA	791.84M	656.54M	451.95M	315.51M	259.04M	152.96M
Net Income	557.28M	444.09M	281.59M	202.13M	402.71M	129.09M
Balance Sheet
Total Assets	2.05B	2.06B	1.73B	1.84B	1.10B	579.92M
Cash, Cash Equivalents and Short-Term Investments	548.18M	596.07M	336.00M	362.79M	740.92M	368.01M
Total Debt	1.51B	1.51B	1.50B	1.51B	876.67M	397.23M
Total Liabilities	1.72B	1.70B	1.65B	1.67B	907.48M	428.88M
Stockholders Equity	332.75M	363.82M	83.81M	169.80M	196.95M	151.05M
Cash Flow
Free Cash Flow	540.69M	468.37M	373.28M	235.30M	297.98M	52.95M
Operating Cash Flow	547.77M	479.06M	388.57M	240.11M	299.44M	55.45M
Investing Cash Flow	-143.64M	-262.72M	-96.91M	-487.00M	-406.29M	78.35M
Financing Cash Flow	-530.14M	-218.86M	-407.99M	362.37M	77.86M	-106.28M

Halozyme Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 68.96 is above the 20-day moving average (MA) of 61.55, above the 50-day MA of 57.38, and above the 200-day MA of 56.22, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 83.06 is Negative, neither overbought nor oversold. The STOCH value of 97.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HALO.

Halozyme Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORT	77 Outperform	$7.56B	63.85	21.42%	―	25.71%	4.48%
HALO	76 Outperform	$7.87B	15.37	179.14%	―	34.97%	71.10%
JAZZ	64 Neutral	$7.14B	15.58	-10.84%	―	4.52%	-205.13%
ASND	61 Neutral	$12.01B	―	357.68%	―	55.77%	46.81%
ROIV	57 Neutral	$8.09B	1.93	-15.84%	―	-85.32%	-111.82%
MDGL	56 Neutral	$8.24B	―	-36.30%	―	3421.98%	49.62%
Sector *	47 Neutral	C$212.32M	0.03	-30.33%	3.13%	19.38%	-2.35%

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.