NasdaqGS:HZNP

Stock Analysis Report

Executive Summary

Horizon Therapeutics Public Limited Company, a biopharmaceutical company, focuses on researching, developing, and commercializing medicines that address unmet treatment needs for rare and rheumatic diseases in the United States and internationally.

Rewards

Trading at 65.7% below its fair value

Earnings are forecast to grow 20.39% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with high growth potential.


Similar Companies

Share Price & News

How has Horizon Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HZNP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

HZNP

5.5%

US Pharmaceuticals

10.5%

US Market


1 Year Return

4.2%

HZNP

-12.2%

US Pharmaceuticals

-11.5%

US Market

Return vs Industry: HZNP exceeded the US Pharmaceuticals industry which returned -12.2% over the past year.

Return vs Market: HZNP exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

HZNPIndustryMarket
7 Day10.1%5.5%10.5%
30 Day-19.2%-10.3%-15.4%
90 Day-24.3%-16.7%-21.4%
1 Year4.2%4.2%-10.0%-12.2%-9.6%-11.5%
3 Year86.3%86.3%7.0%-0.7%12.6%5.4%
5 Year6.0%6.0%11.0%-1.3%32.8%18.1%

Price Volatility Vs. Market

How volatile is Horizon Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Horizon Therapeutics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HZNP ($27.53) is trading below our estimate of fair value ($80.28)

Significantly Below Fair Value: HZNP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HZNP is good value based on its PE Ratio (8.8x) compared to the Pharmaceuticals industry average (20.1x).

PE vs Market: HZNP is good value based on its PE Ratio (8.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: HZNP is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HZNP is good value based on its PB Ratio (2.4x) compared to the US Pharmaceuticals industry average (2.5x).


Next Steps

Future Growth

How is Horizon Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HZNP's forecast earnings growth (20.4% per year) is above the savings rate (1.7%).

Earnings vs Market: HZNP's earnings (20.4% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HZNP's revenue (11.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HZNP's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HZNP's Return on Equity is forecast to be high in 3 years time (25.3%)


Next Steps

Past Performance

How has Horizon Therapeutics performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HZNP has a large one-off loss of $70.9M impacting its December 31 2019 financial results.

Growing Profit Margin: HZNP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HZNP has become profitable over the past 5 years, growing earnings by 17.3% per year.

Accelerating Growth: HZNP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HZNP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: HZNP's Return on Equity (26.2%) is considered high.


Next Steps

Financial Health

How is Horizon Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: HZNP's short term assets ($1.7B) exceed its short term liabilities ($723.2M).

Long Term Liabilities: HZNP's short term assets ($1.7B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: HZNP's debt to equity ratio (61.9%) is considered high.

Reducing Debt: HZNP's debt to equity ratio has reduced from 64.3% to 61.9% over the past 5 years.


Balance Sheet

Inventory Level: HZNP has a low level of unsold assets or inventory.

Debt Coverage by Assets: HZNP's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HZNP is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HZNP is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Horizon Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HZNP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HZNP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HZNP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HZNP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HZNP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Tim Walbert (52yo)

11.75s

Tenure

US$13,873,171

Compensation

Mr. Timothy P. Walbert, also known as Tim, serves as Director at Exicure, Inc. since July 22, 2019. Mr. Walbert has been the Chairman, President and Chief Executive Officer at Horizon Pharma plc since June ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD13.87M) is above average for companies of similar size in the US market ($USD7.47M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Walbert
Chairman11.75yrsUS$13.87m0.45% $23.6m
Paul Hoelscher
Executive VP & CFO5.42yrsUS$4.44m0.12% $6.5m
Vikram Karnani
Executive VP & Chief Commercial Officerno dataUS$4.06m0.047% $2.5m
Miles McHugh
Chief Accounting Officer & Senior VP5.25yrsno data0.072% $3.8m
Tina Ventura
Senior Vice President of Investor Relationsno datano datano data
Brian Beeler
Executive VP & General Counsel4.83yrsno data0.059% $3.1m
Timothy Ayers
Chief Compliance Officer & VP4.83yrsno datano data
Geoffrey Curtis
Executive VP of Corporate Affairs & Chief Communications Officer4.25yrsno data0.033% $1.7m
Irina Konstantinovsky
Executive VP & Chief Human Resources Officer2.5yrsUS$2.31m0.029% $1.5m
Jeffrey Sherman
Executive VP & Chief Medical Officerno dataUS$916.28k0.16% $8.3m

4.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HZNP's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Walbert
Chairman11.75yrsUS$13.87m0.45% $23.6m
Michael Grey
Lead Independent Director7.58yrsUS$524.03k0.025% $1.3m
William Daniel
Independent Director5.5yrsUS$502.76k0.029% $1.5m
Gino Santini
Independent Director8yrsUS$518.83k0.016% $830.3k
H. Watkins
Independent Director5.92yrsUS$515.22k0.032% $1.7m
James Shannon
Independent Director2.58yrsUS$507.24k0.010% $530.3k
Susan Mahony
Director0.58yrUS$341.79kno data
Pascale Witz
Independent Director2.58yrsUS$494.61k0.011% $558.1k

5.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HZNP's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HZNP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.1%.


Top Shareholders

Company Information

Horizon Therapeutics Public Limited Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Horizon Therapeutics Public Limited Company
  • Ticker: HZNP
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$5.235b
  • Shares outstanding: 190.16m
  • Website: https://www.horizontherapeutics.com

Number of Employees


Location

  • Horizon Therapeutics Public Limited Company
  • Connaught House
  • 1st Floor
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HZNPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2014
HPRDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2014

Biography

Horizon Therapeutics Public Limited Company, a biopharmaceutical company, focuses on researching, developing, and commercializing medicines that address unmet treatment needs for rare and rheumatic diseases in the United States and internationally. Its orphan and rheumatology marketed medicines include KRYSTEXXA, a medicine for the treatment of uncontrolled gout; RAVICTI for use as a nitrogen-binding agent for chronic management of adult and pediatric patients; PROCYSBI for nephropathic cystinosis, a rare and life-threatening metabolic disorder; ACTIMMUNE for chronic granulomatous disease; RAYOS for the treatment of multiple conditions, rheumatoid arthritis; BUPHENYL tablets for oral administration and BUPHENYL powder for oral, nasogastric, or gastrostomy tube administration; and QUINSAIR, a formulation of the antibiotic drug levofloxacin for the management of chronic pulmonary infections due to Pseudomonas aeruginosa in adult patients with cystic fibrosis. The company’s primary care marketed medicines comprise PENNSAID 2% that is indicated for the treatment of pain of osteoarthritis of the knees; DUEXIS for the relief of signs and symptoms of RA and OA, and to decrease the risk of developing upper-GI ulcers; VIMOVO for the relief of signs and symptoms of OA, RA, and AS and to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric ulcers; and MIGERGOT, a therapy to abort or prevent vascular headaches, such as migraines and migraine variants. It has collaboration agreements with Alliance for Lupus Research, Syneos Health, Inc., and HemoShear Therapeutics, LLC. The company was formerly known as Horizon Pharma Public Limited Company and changed its name to Horizon Therapeutics Public Limited Company in May 2019. Horizon Therapeutics Public Limited Company was founded in 2005 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 03:33
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.