BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) is an undervalued gem with solid fundamentals.

Our stock screener has spotted BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) as an undervalued stock with solid fundamentals. BMRN shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Valuation looks like for BMRN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. BMRN boasts a 7 out of 10:

• BMRN's Price/Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.72% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.37% of the companies listed in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 95.25% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 95.07% of the companies listed in the same industry.
• BMRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• BMRN has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as BMRN's earnings are expected to grow with 32.13% in the coming years.

Profitability Analysis for BMRN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. BMRN has earned a 7 out of 10:

• BMRN has a better Return On Assets (6.11%) than 94.37% of its industry peers.
• BMRN's Return On Equity of 7.54% is amongst the best of the industry. BMRN outperforms 94.01% of its industry peers.
• With an excellent Return On Invested Capital value of 7.44%, BMRN belongs to the best of the industry, outperforming 94.72% of the companies in the same industry.
• The 3 year average ROIC (3.73%) for BMRN is below the current ROIC(7.44%), indicating increased profibility in the last year.
• BMRN's Profit Margin of 14.96% is amongst the best of the industry. BMRN outperforms 95.77% of its industry peers.
• With an excellent Operating Margin value of 19.85%, BMRN belongs to the best of the industry, outperforming 96.13% of the companies in the same industry.
• BMRN's Gross Margin of 79.67% is amongst the best of the industry. BMRN outperforms 84.86% of its industry peers.

ChartMill's Evaluation of Health

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. BMRN has achieved a 7 out of 10:

• BMRN has an Altman-Z score of 6.20. This indicates that BMRN is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 6.20, BMRN belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
• The Debt to FCF ratio of BMRN is 1.25, which is an excellent value as it means it would take BMRN, only 1.25 years of fcf income to pay off all of its debts.
• BMRN's Debt to FCF ratio of 1.25 is amongst the best of the industry. BMRN outperforms 95.25% of its industry peers.
• 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.
• BMRN has a Current Ratio of 5.33. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 3.29 indicates that BMRN has no problem at all paying its short term obligations.

Understanding BMRN's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. BMRN scores a 5 out of 10:

• BMRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 132.63%, which is quite impressive.
• BMRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.97%.
• BMRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.86% yearly.
• The Earnings Per Share is expected to grow by 27.94% on average over the next years. This is a very strong growth

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

Check the latest full fundamental report of BMRN for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.