NasdaqGS:HZNP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HZNP's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

HZNP

2.9%

US Pharmaceuticals

0.7%

US Market


1 Year Return

113.2%

HZNP

7.0%

US Pharmaceuticals

22.2%

US Market

Return vs Industry: HZNP exceeded the US Pharmaceuticals industry which returned 7.4% over the past year.

Return vs Market: HZNP exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

HZNPIndustryMarket
7 Day0.9%2.9%0.7%
30 Day-5.6%7.3%11.8%
90 Day-3.7%2.1%8.6%
1 Year113.2%113.2%9.7%7.0%25.0%22.2%
3 Year380.2%380.2%28.6%19.1%49.4%39.5%
5 Year250.3%250.3%41.4%25.1%100.2%78.1%

Long-Term 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 ($69.54) is trading below our estimate of fair value ($143.95)

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 (17.1x) compared to the US Pharmaceuticals industry average (21.8x).

PE vs Market: HZNP is good value based on its PE Ratio (17.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: HZNP is poor value based on its PEG Ratio (42.3x)


Price to Book Ratio

PB vs Industry: HZNP is overvalued based on its PB Ratio (4x) compared to the US Pharmaceuticals industry average (3.6x).


Next Steps

Future Growth

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

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HZNP's forecast earnings growth (0.4% per year) is below the savings rate (2.2%).

Earnings vs Market: HZNP's earnings (0.4% per year) are forecast to grow slower than the US market (21.8% per year).

High Growth Earnings: HZNP's earnings are forecast to grow, but not significantly.

Revenue vs Market: HZNP's revenue (17.4% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: HZNP's revenue (17.4% 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 (25.7%)


Next Steps

Past Performance

How has Horizon Therapeutics performed over the past 5 years?

52.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HZNP has a high level of non-cash earnings.

Growing Profit Margin: HZNP's current net profit margins (43.5%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: HZNP has become profitable over the past 5 years, growing earnings by 52.3% per year.

Accelerating Growth: HZNP's earnings growth over the past year (807.9%) exceeds its 5-year average (52.3% per year).

Earnings vs Industry: HZNP earnings growth over the past year (807.9%) exceeded the Pharmaceuticals industry 16.8%.


Return on Equity

High ROE: HZNP's Return on Equity (20.9%) 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 ($2.7B) exceed its short term liabilities ($783.6M).

Long Term Liabilities: HZNP's short term assets ($2.7B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: HZNP's debt to equity ratio (26.4%) is considered satisfactory.

Reducing Debt: HZNP's debt to equity ratio has reduced from 90.6% to 26.4% over the past 5 years.

Debt Coverage: HZNP's debt is well covered by operating cash flow (33.6%).

Interest Coverage: HZNP's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


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 recent payouts.

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

5.6yrs

Average management tenure


CEO

Tim Walbert (53 yo)

12.5yrs

Tenure

US$13,873,171

Compensation

Mr. Timothy P. Walbert, also known as Tim, serves as Chairman of the Board at Exicure, Inc. since April 2020. Mr. Walbert serves as Lead Independent Director at Assertio Holdings, Inc. from May 19, 2020. M...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD13.87M) is about average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Walbert
Chairman12.5yrsUS$13.87m0.34%
$ 51.7m
Paul Hoelscher
Executive VP & CFO6.17yrsUS$4.44m0.047%
$ 7.2m
Barry Moze
Executive VP & Chief Administrative Officer0.92yrUS$4.66m0.046%
$ 7.0m
Vikram Karnani
Executive VP & President of Internationalno dataUS$4.06m0.036%
$ 5.5m
Miles McHugh
Chief Accounting Officer & Senior VP6yrsno data0.0098%
$ 1.5m
Karin Rosen
Executive VP of Research & Development and Chief Scientific Officerno datano datano data
Tina Ventura
Senior Vice President of Investor Relationsno datano datano data
Brian Beeler
Executive VP & General Counsel5.58yrsno data0.029%
$ 4.5m
Timothy Ayers
Chief Compliance Officer & VP5.58yrsno datano data
Geoffrey Curtis
Executive VP of Corporate Affairs & Chief Communications Officer5yrsno data0.016%
$ 2.5m
Irina Konstantinovsky
Executive VP & Chief Human Resources Officer3.25yrsUS$2.31m0.026%
$ 4.0m
Jeffrey Sherman
Executive VP & Chief Medical Officerno dataUS$916.28k0.14%
$ 21.3m

5.6yrs

Average Tenure

53yo

Average Age

Experienced Management: HZNP's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Walbert
Chairman12.5yrsUS$13.87m0.34%
$ 51.7m
Michael Grey
Lead Independent Director8.33yrsUS$524.03k0.028%
$ 4.3m
William Daniel
Independent Director6.25yrsUS$502.76k0.030%
$ 4.6m
Jeff Himawan
Director13.42yrsUS$521.33k0.019%
$ 3.0m
Gino Santini
Independent Director8.75yrsUS$518.83k0.034%
$ 5.2m
H. Watkins
Independent Director6.67yrsUS$515.22k0.034%
$ 5.3m
James Shannon
Independent Director3.33yrsUS$507.24k0.015%
$ 2.3m
Susan Mahony
Independent Director1.33yrsUS$341.79k0.0033%
$ 508.0k
Pascale Witz
Independent Director3.33yrsUS$494.61k0.016%
$ 2.4m

6.7yrs

Average Tenure

63yo

Average Age

Experienced Board: HZNP's board of directors are considered experienced (6.7 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 17.8%.


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$15.348b
  • Shares outstanding: 220.71m
  • 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 StockUSUSDJul 2011
HPRDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2011
HZNP NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2011
H1ZN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COM NPVBRBRLOct 2020

Biography

Horizon Therapeutics Public Limited Company, a biopharmaceutical company, focuses on researching, developing, and commercializing of medicines that address unmet treatment needs for rare and rheumatic dise...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:51
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
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.