BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screener has singled out BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) as a stellar value proposition. NASDAQ:BMRN not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Deciphering NASDAQ:BMRN's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:BMRN, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio, BMRN is valued cheaper than 94.93% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, BMRN is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
• BMRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMRN is cheaper than 95.10% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, BMRN is valued cheaply inside the industry as 94.76% of the companies are valued more expensively.
• BMRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of BMRN may justify a higher PE ratio.
• BMRN's earnings are expected to grow with 37.09% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NASDAQ:BMRN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:BMRN has achieved a 7:

• The Return On Assets of BMRN (6.11%) is better than 95.10% of its industry peers.
• BMRN has a Return On Equity of 7.54%. This is amongst the best in the industry. BMRN outperforms 94.23% of its industry peers.
• BMRN has a better Return On Invested Capital (7.44%) than 94.76% of its industry peers.
• The last Return On Invested Capital (7.44%) for BMRN is above the 3 year average (3.73%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 14.96%, BMRN belongs to the best of the industry, outperforming 95.80% of the companies in the same industry.
• BMRN has a better Operating Margin (19.85%) than 95.98% of its industry peers.
• BMRN has a better Gross Margin (79.67%) than 85.84% of its industry peers.

How do we evaluate the Health for NASDAQ:BMRN?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:BMRN has achieved a 7 out of 10:

• BMRN has an Altman-Z score of 7.30. This indicates that BMRN is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 7.30, BMRN belongs to the best of the industry, outperforming 84.27% of the companies in the same industry.
• BMRN has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 1.25, BMRN belongs to the best of the industry, outperforming 95.63% of the companies in the same industry.
• A Debt/Equity ratio of 0.11 indicates that BMRN is not too dependend on debt financing.
• Although BMRN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• A Current Ratio of 5.33 indicates that BMRN has no problem at all paying its short term obligations.
• BMRN has a Quick Ratio of 3.29. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.

Evaluating Growth: NASDAQ:BMRN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:BMRN has received a 5 out of 10:

• The Earnings Per Share has grown by an impressive 132.63% over the past year.
• Looking at the last year, BMRN shows a quite strong growth in Revenue. The Revenue has grown by 17.97% in the last year.
• Measured over the past years, BMRN shows a quite strong growth in Revenue. The Revenue has been growing by 10.86% on average per year.
• Based on estimates for the next years, BMRN will show a very strong growth in Earnings Per Share. The EPS will grow by 27.45% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of BMRN contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.