Halozyme (HALO) AI Stock Analysis

Compare

1,003 Followers

Top Page

Halozyme

(NASDAQ:HALO)

Rating:75Outperform

Price Target:

$57.00

▲(4.74%Upside)

Halozyme receives a strong overall score driven by robust financial performance and positive earnings call highlights. The company's high revenue and profit growth, efficient cash flow management, and increased guidance signal a promising growth outlook. However, high leverage on the balance sheet requires careful management. Technical analysis presents mixed signals, but the valuation suggests the stock may be undervalued. Overall, Halozyme presents a compelling investment case with significant strengths offset by some risks.

Positive Factors

Market Expansion

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

Stock Rating and Price Target

Analyst maintains a Buy rating on HALO shares and a $75 price target based on the company’s recent strong financial results.

Negative Factors

Pricing Risks

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 Uncertainty

Issuance by CMS of draft pricing guidance creates too much uncertainty for the stock rating.

Halozyme (HALO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.72B

Dividend YieldN/A

Average Volume (3M)2.69M

Price to Earnings (P/E)14.5

Beta (1Y)0.59

Revenue Growth25.65%

EPS Growth57.10%

CountryUS

Employees350

SectorHealthcare

Sector Strength40

IndustryBiotechnology

Share Statistics

EPS (TTM)1.11

Shares Outstanding123,221,000

10 Day Avg. Volume4,004,219

30 Day Avg. Volume2,691,879

Financial Highlights & Ratios

PEG Ratio1.33

Price to Book (P/B)22.18

Price to Sales (P/S)0.00

P/FCF Ratio16.84

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$64.40

Price Target Upside18.34% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Halozyme Business Overview & Revenue Model

Company DescriptionHalozyme 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 MoneyHalozyme makes money primarily through collaborations and licensing agreements with pharmaceutical and biotechnology companies. The company's ENHANZE technology is licensed to partners who integrate it into their own therapeutic products. Halozyme receives revenue from these partnerships in the form of upfront payments, milestone payments, and royalties on sales of products that incorporate the ENHANZE technology. Additionally, the company may earn revenue from direct product sales and other strategic partnerships that leverage its proprietary platforms. Key partnerships with major pharmaceutical companies significantly contribute to Halozyme's revenue streams.

Halozyme Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Highlights revenue from different business units, indicating which segments drive growth and profitability, and where there might be opportunities or challenges.

Chart InsightsHalozyme's revenue growth is primarily driven by a surge in royalty income, which has seen consistent increases, particularly from blockbuster products like DARZALEX subcutaneous and Phesgo. This aligns with the company's strong earnings report and increased 2025 guidance. While product sales and collaborative agreements show fluctuations, the strategic focus on royalties and new growth catalysts positions Halozyme for sustained momentum. However, investors should be mindful of potential risks from ongoing litigation with Merck, although it is not expected to affect core operations.

Data provided by:

Main Street Data

Halozyme Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -8.35%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong financial performance with significant growth in revenue and profits driven by key blockbuster products. The company announced new growth catalysts and an increased guidance for 2025. However, ongoing litigation with Merck poses a potential risk, though it is not expected to impact the core business. Overall, the highlights significantly outweigh the lowlights.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Total revenue increased 35% year-over-year to $265 million, with royalty revenue increasing by 39% to $168 million. Adjusted EBITDA increased to $162 million and non-GAAP EPS increased to $1.11, both representing approximately 40% year-over-year growth. Net income grew 54% to $118 million.

Successful Blockbuster Products

DARZALEX subcutaneous sales increased 22% year-over-year to $3.2 billion, Phesgo sales increased 52% to approximately $675 million, and VYVGART Hytrulo contributed significantly to revenue growth. These blockbusters are expected to sustain growth for years.

New Growth Catalysts

11 new growth catalysts were identified, including approvals and market expansions for DARZALEX, Phesgo, and VYVGART Hytrulo, expected to drive growth for multiple years.

Share Repurchase Program

The company announced a $250 million share repurchase plan for 2025, continuing a trend of delivering high IRR through buybacks.

Increased 2025 Guidance

Full-year revenue guidance was raised to $1.2 billion to $1.28 billion, representing year-over-year growth of 18% to 26%.

Negative Updates

Litigation with Merck

Ongoing patent litigation with Merck over the MDASE, which could introduce uncertainties, though it is not expected to impact ENHANZE business.

R&D and SG&A Expenses

R&D expenses decreased due to resource optimization, while SG&A expenses increased due to higher compensation and consulting fees.

Company Guidance

During Halozyme's first quarter 2025 earnings call, guidance was provided highlighting significant financial growth and future expectations. Total revenue increased by 35% year-over-year to $265 million, driven primarily by a 39% increase in royalty revenue to $168 million from blockbusters like DARZALEX subcutaneous, Phesgo, and VYVGART Hytrulo. Adjusted EBITDA grew to $162 million, representing a 40% increase, while non-GAAP EPS rose to $1.11, marking similar growth. Net income surged by 54% to $118 million. The company announced a $250 million share repurchase plan for 2025, reflecting strong investor returns, and raised its full-year 2025 guidance, projecting total revenues between $1.2 billion and $1.28 billion, with royalty revenues expected to grow by 31% to 37%.

Halozyme Financial Statement Overview

Summary

Halozyme exhibits strong financial health with impressive revenue and profit growth, effective cost management, and robust cash flows. The elimination of debt enhances financial stability, although maintaining sustainable equity growth remains crucial.

Income Statement

Very Positive

Halozyme has demonstrated strong revenue growth, with a significant increase from $267.6M in 2020 to over $1B in 2024, reflecting robust market expansion. Gross profit margin remains high at 84.3% in 2024, showcasing effective cost management. Net profit margin has improved to 43.7%, indicating enhanced profitability. Both EBIT and EBITDA margins are impressive at 54.3% in 2024, highlighting operational efficiency.

Balance Sheet

Positive

The company has improved its financial stability, with stockholders' equity rising to $363.8M in 2024. The debt-to-equity ratio has improved significantly, with total debt being eliminated, enhancing financial resilience. The equity ratio has improved, indicating a stronger capital structure. However, the ROE at 122% reflects high profitability but could also point to a need for sustainable equity growth.

Cash Flow

Very Positive

Halozyme has shown strong cash flow performance, with free cash flow growing consistently, reaching $468.4M in 2024. The operating cash flow to net income ratio is robust at 1.08, showcasing effective conversion of income into cash. Free cash flow to net income ratio stands at 1.06, reflecting efficient cash management. This solid cash flow supports future growth and operational flexibility.

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

Halozyme Technical Analysis

Technical Analysis Sentiment

Negative

Last Price54.42

Price Trends

50DMA

59.94

Negative

100DMA

58.26

Negative

200DMA

56.38

Negative

Market Momentum

MACD

-1.98

Positive

RSI

44.28

Neutral

STOCH

62.35

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 54.42 is below the 20-day moving average (MA) of 57.81, below the 50-day MA of 59.94, and below the 200-day MA of 56.38, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HALO.

Halozyme Risk Analysis

Halozyme disclosed 39 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 1 New Risks

Violence, physical attacks or threats of violence directed toward company facilities or key company personnel may disrupt company operations and undermine investor confidence. Q4, 2024

Halozyme Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORT	76 Outperform	$8.15B	66.67	21.52%	―	30.93%	11.78%
HALO	75 Outperform	$6.72B	14.47	147.06%	―	25.65%	57.10%
JAZZ	70 Outperform	$6.75B	14.76	12.25%	―	5.76%	49.58%
MDGL	56 Neutral	$5.94B	―	-50.16%	―	―	21.83%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
ASND	52 Neutral	$9.88B	―	357.68%	―	10.69%	34.71%
ROIV	51 Neutral	$7.68B	1.93	-7.10%	―	-20.84%	-102.48%

* Healthcare Sector Average

Performance Comparison

HALO

Halozyme

54.42

11.34

26.32%

CORT

Corcept Therapeutics

76.81

45.20

142.99%

JAZZ

Jazz Pharmaceuticals

109.46

4.40

4.19%

MDGL

Madrigal Pharmaceuticals

271.57

48.28

21.62%

ASND

Ascendis Pharma

157.27

29.94

23.51%

ROIV

Roivant Sciences

10.76

-0.07

-0.65%

Halozyme Corporate Events

Executive/Board Changes

Halozyme Announces Retirement of Chief Technical Officer

Neutral

Mar 21, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.