Horizon Therapeutics (NasdaqGS:HZNP) - Share price, News & Analysis

HZNP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

HZNP Stock Overview

Rewards

Trading at 67.2% below our estimate of its fair value

Earnings are forecast to grow 27.71% per year

Earnings grew by 207.9% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Horizon Therapeutics Competitors

AbbVie

NYSE:ABBV

US$266.9b

Gilead Sciences

NasdaqGS:GILD

US$80.1b

Biogen

NasdaqGS:BIIB

US$29.2b

Pfizer

NYSE:PFE

US$294.4b

Price History & Performance

Summary of all time highs, changes and price drops for Horizon Therapeutics
Historical stock prices
Current Share Price	US$90.35
52 Week High	US$120.54
52 Week Low	US$82.51
Beta	1.11
1 Month Change	-14.64%
3 Month Change	-3.23%
1 Year Change	-3.86%
3 Year Change	263.87%
5 Year Change	785.78%
Change since IPO	887.43%

Recent News & Updates

May 20

Horizon Therapeutics (NASDAQ:HZNP) Has A Rock Solid Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

May 09

Horizon: For Those Who Dare

Horizon's inflammation segment is on fire in a not good way. The biopharmaceutical firm's orphan therapies segment presents another, far more interesting opportunity. The company is performing well in a perilous market environment.

Shareholder Returns

	HZNP	US Biotechs	US Market
7D	-0.09%	1.4%	-2.7%
1Y	-3.9%	-21.7%	-12.9%

Return vs Industry: HZNP exceeded the US Biotechs industry which returned -21.7% over the past year.

Return vs Market: HZNP exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is HZNP's price volatile compared to industry and market?
HZNP volatility
HZNP Average Weekly Movement	5.4%
Biotechs Industry Average Movement	12.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: HZNP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HZNP's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	1,940	Tim Walbert	https://www.horizontherapeutics.com

Horizon Therapeutics Public Limited Company, a biotechnology company, focuses on the discovery, development, and commercialization of medicines that address critical needs for people impacted by rare, autoimmune, and severe inflammatory diseases. The company operates in two segments, Orphan and Inflammation. Its portfolio comprises 12 medicines in the areas of rare diseases, gout, ophthalmology, and inflammation.

Horizon Therapeutics Fundamentals Summary

How do Horizon Therapeutics's earnings and revenue compare to its market cap?
HZNP fundamental statistics
Market Cap	US$20.77b
Earnings (TTM)	US$862.10m
Revenue (TTM)	US$3.77b

24.1x

P/E Ratio

5.5x

P/S Ratio

Is HZNP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HZNP income statement (TTM)
Revenue	US$3.77b
Cost of Revenue	US$855.34m
Gross Profit	US$2.91b
Other Expenses	US$2.05b
Earnings	US$862.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.75
Gross Margin	77.31%
Net Profit Margin	22.87%
Debt/Equity Ratio	53.3%

How did HZNP perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HZNP ($90.35) is trading below our estimate of fair value ($275.59)

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

Price To Earnings Ratio

PE vs Industry: HZNP is poor value based on its PE Ratio (24.1x) compared to the US Biotechs industry average (15.1x).

PE vs Market: HZNP is poor value based on its PE Ratio (24.1x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: HZNP is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: HZNP is overvalued based on its PB Ratio (4.3x) compared to the US Biotechs industry average (1.5x).

Future Growth

How is Horizon Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

27.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HZNP's forecast earnings growth (27.7% per year) is above the savings rate (1.9%).

Earnings vs Market: HZNP's earnings (27.7% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: HZNP's revenue (11.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: HZNP's revenue (11.8% 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 (22.6%)

Past Performance

How has Horizon Therapeutics performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

64.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HZNP has high quality earnings.

Growing Profit Margin: HZNP's current net profit margins (22.9%) are higher than last year (12.8%).

Past Earnings Growth Analysis

Earnings Trend: HZNP has become profitable over the past 5 years, growing earnings by 64% per year.

Accelerating Growth: HZNP's earnings growth over the past year (207.9%) exceeds its 5-year average (64% per year).

Earnings vs Industry: HZNP earnings growth over the past year (207.9%) exceeded the Biotechs industry 96.9%.

Return on Equity

High ROE: HZNP's Return on Equity (17.9%) is considered low.

Financial Health

How is Horizon Therapeutics's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HZNP's short term assets ($2.9B) exceed its short term liabilities ($825.2M).

Long Term Liabilities: HZNP's short term assets ($2.9B) do not cover its long term liabilities ($3.1B).

Debt to Equity History and Analysis

Debt Level: HZNP's net debt to equity ratio (19.2%) is considered satisfactory.

Reducing Debt: HZNP's debt to equity ratio has reduced from 157% to 53.3% over the past 5 years.

Debt Coverage: HZNP's debt is well covered by operating cash flow (48.8%).

Interest Coverage: HZNP's interest payments on its debt are well covered by EBIT (10.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HZNP has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.5yrs

Average management tenure

CEO

Tim Walbert (54 yo)

13.92yrs

Tenure

US$21,353,458

Compensation

Mr. Timothy P. Walbert, also known as Tim, had been the Chairman of the Board at Exicure, Inc. since April 2020 until February 4, 2022 and had been its Independent Director since July 22, 2019 until Februa...

CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD21.35M) is above average for companies of similar size in the US market ($USD13.34M).

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

Leadership Team

Experienced Management: HZNP's management team is seasoned and experienced (5.5 years average tenure).

Board Members

Experienced Board: HZNP's board of directors are considered experienced (8.1 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 2.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31