BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) – An Undervalued Biotech Stock Worth Watching

BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) was identified by our Decent Value screener as a stock with strong fundamentals and an attractive valuation. The company, which specializes in therapies for rare diseases, scores well across key financial metrics while trading at a reasonable price relative to its industry peers.

Valuation

With a Valuation Rating of 8/10, BMRN appears attractively priced:

• P/E Ratio: At 20.76, it is cheaper than 95% of its biotechnology peers.
• Forward P/E: 14.49, below the S&P 500 average of 20.99.
• Price/Free Cash Flow: Ranks better than 95% of industry competitors.
• PEG Ratio: Indicates the stock is reasonably priced relative to expected earnings growth.

Financial Health

The company earns a Health Rating of 7/10, reflecting strong solvency and liquidity:

• Low Debt: Debt/Equity ratio of 0.10 suggests minimal reliance on borrowing.
• Strong Liquidity: Current Ratio of 5.52 and Quick Ratio of 3.49 indicate ample ability to cover short-term obligations.
• Altman-Z Score: 6.43 signals low bankruptcy risk.

Profitability

BMRN’s Profitability Rating of 7/10 highlights efficient operations:

• High Margins: Gross Margin of 79.44% and Operating Margin of 24.13% outperform most industry peers.
• ROIC & ROE: Return on Invested Capital (9.16%) and Return on Equity (9.04%) rank in the top 6% of the sector.

Growth Prospects

While growth is moderate (Rating: 5/10), key positives include:

• Recent EPS Growth: Up 152.63% over the past year.
• Revenue Growth: 19.36% YoY increase, with a 5-year average of 10.86%.
• Future EPS Growth: Expected to rise nearly 28% annually.

Our Decent Value screener lists more stocks with similar characteristics. For a deeper look, review the full fundamental report on BMRN.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.