One-glance verdict
Undervalued
$241.77 our estimate vs market $121.23
Wall Street consensus: $108.78 (-55.0% lower than our fair-value estimate)
50% below our estimate, below the bear case
Fundamentals snapshot
Halozyme Therapeutics, Inc.
HALO · NMS · Healthcare · Biotechnology
Current price
$121.23
52-week range
$61.23 - $122.44
Market cap
$13.76B
Balance sheet
Distressed
44.28x Strong cushion
Net debt $1.95B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 19.1% last year.
- Reward Returns 173.7% on equity, ahead of 83% of its peers.
- Risk Net debt grew 74.9% over 3 years.
- Risk Stock trades 45.7% above its 5-year average P/E.
What this company does
Halozyme Therapeutics, Inc.
Halozyme Therapeutics develops special enzymes that help deliver other medicines more easily under the skin. Their main income comes from licensing these enzymes to big drug companies, meaning they get paid when those companies use Halozyme's technology in their own injected drugs. This matters because it helps patients get their treatments with less discomfort and allows drug companies to create new ways to give their medicines.
How the company got here
Halozyme Therapeutics was founded in 1998 with a focus on developing a patented enzyme technology. This enzyme, called recombinant human hyaluronidase (rHuPH20), is designed to help the body absorb injected medications more effectively. The company's journey has involved extensive research and development to prove the utility of this enzyme, leading to strategic partnerships with major pharmaceutical companies. These collaborations have been crucial in bringing Halozyme's technology to a wider market and establishing its place in the biopharmaceutical industry.
What it actually does
At its core, Halozyme Therapeutics develops and commercializes a special enzyme that makes it easier for the body to absorb injectable medicines. Think of it like adding a special ingredient to an injection that helps the medicine spread out and get into the bloodstream faster and more efficiently. This technology is used to improve the delivery of various drugs, including those for cancer, autoimmune diseases, and hormone replacement therapy, making treatments potentially more convenient for patients by allowing for subcutaneous (under the skin) injections instead of intravenous (into the vein) ones.
ENHANZE Technology
Halozyme's primary business revolves around its patented ENHANZE drug delivery technology, which is based on the rHuPH20 enzyme. This technology is licensed to pharmaceutical partners who then incorporate it into their own injectable drugs. When combined with a partner's drug, the ENHANZE technology helps the drug disperse more quickly and widely under the skin. This allows for larger volumes of medication to be delivered via a single subcutaneous injection, potentially reducing the need for frequent or lengthy IV infusions for patients.
Collaborations and Licensing
A significant portion of Halozyme's revenue comes from collaborations and licensing agreements with large pharmaceutical companies like Roche, Pfizer, and Bristol Myers Squibb. These agreements allow Halozyme's partners to use its ENHANZE technology with their own drugs. Halozyme earns money through upfront payments, milestone payments (paid when certain development or commercial goals are met), and royalties on the sales of drugs that use its technology. This business model means Halozyme doesn't necessarily develop the final drugs itself but provides a key enabling technology.
What management is betting on now
Halozyme's management is focused on expanding the reach of its ENHANZE technology by forging new partnerships and supporting existing ones. They aim to see more drugs developed using their platform, particularly for chronic conditions and complex therapies where subcutaneous delivery offers a significant patient benefit. The strategy involves demonstrating the value of their technology to more pharmaceutical companies, thereby increasing the number of drugs on the market that utilize ENHANZE and growing the royalty revenue stream.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$113.86M
FY2024 Q4
$175.41M
FY2025 Q1
$153.27M
FY2025 Q2
$98.15M
FY2025 Q3
$175.57M
FY2025 Q4
$217.60M
FY2026 Q1
$176.34M
FY2026 Q2
$236.72M
Revenue
$481.00M
Net income
$229.91M
Diluted EPS
1.90
Operating cash flow
$240.89M
Free cash flow
$236.72M
Fetching…
Sources
Revenue
$376.71M
Net income
$150.05M
Diluted EPS
1.22
Operating cash flow
$180.08M
Free cash flow
$176.34M
Fetching…
Sources
Revenue
$451.77M
Net income
$-141.59M
Diluted EPS
-1.13
Operating cash flow
$219.03M
Free cash flow
$217.60M
Fetching…
Sources
Revenue
$354.26M
Net income
$175.22M
Diluted EPS
1.43
Operating cash flow
$178.60M
Free cash flow
$175.57M
Fetching…
Sources
Revenue
$325.72M
Net income
$165.16M
Diluted EPS
1.33
Operating cash flow
$99.71M
Free cash flow
$98.15M
Fetching…
Sources
Revenue
$264.86M
Net income
$118.09M
Diluted EPS
0.93
Operating cash flow
$154.22M
Free cash flow
$153.27M
Fetching…
Sources
Revenue
$298.01M
Net income
$137.01M
Diluted EPS
1.06
Operating cash flow
$178.47M
Free cash flow
$175.41M
Fetching…
Sources
Revenue
$290.08M
Net income
$137.01M
Diluted EPS
1.05
Operating cash flow
$115.38M
Free cash flow
$113.86M
Fetching…
Sources
Is it cheap or expensive?
Fair value $241.77 vs current price $121.23
Wall Street consensus is the average analyst price target: $108.78 (-55.0% lower than our fair-value estimate).
Our most-likely fair value is $241.77 a share — about 99.4% above today's price of $121.23, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $1.9B. Interest coverage 44.3x.
Net debt
$1.95B
Interest coverage
44.28x
Halozyme Therapeutics, Inc.'s profit covers its interest bill about 44.3 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
HALO
BASELINE
Halozyme Therapeutics, Inc.
Total debt $2.18B Interest coverage 44.28x This is the baseline the peer rows are being compared against.
Total debt $1.19B Interest coverage -48.80x -100% vs HALO This peer has almost no interest-payment cushion compared with HALO.
Total debt $8.36B Interest coverage 9.23x -79% vs HALO Carries about 4.8x less debt cushion than HALO.
Total debt $2.99B Interest coverage 1.99x -96% vs HALO Carries about 22.3x less debt cushion than HALO.
Total debt $107.15M Interest coverage -36.96x -100% vs HALO This peer has almost no interest-payment cushion compared with HALO.
Total debt $355.21M Interest coverage -45.12x -100% vs HALO This peer has almost no interest-payment cushion compared with HALO.
What you should know
The case for and against HALO
3 Rewards
3 Risks
Rewards
-
Revenue grew 19.1% last year.
-
Returns 173.7% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Net debt grew 74.9% over 3 years.
-
Stock trades 45.7% above its 5-year average P/E.
-
Insider ownership is only 1.1% (peer median: 1.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.45x
Forward P/E
11.35x
P/B
96.29x
P/S
8.27x
EV/EBITDA
14.98x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
76.3%
Operating margin
59.8%
Net margin
24.9%
ROE
173.7%
ROA
25.5%
Health
Liquidity and balance-sheet strength
Debt / equity
15.18x
Current ratio
2.71x
Quick ratio
1.99x
Total debt
$2.18B
Total cash
$231.00M
Growth
How the business has been compounding
Revenue TTM
$1.66B
Revenue 5Y CAGR
33.2%
EPS TTM
3.42
EPS 5Y CAGR
21.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$818.60M
Free CF TTM
$644.59M
FCF margin
38.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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