Harmony Gold Mining Co. Ltd. (NYSE:HMY): A Prime GARP Candidate with Strong Growth and Logical Valuation

Investors looking for growth openings often face the task of balancing expansion possibility with fair cost. The Growth At Reasonable Price (GARP) method handles this by focusing on companies showing solid growth paths while keeping logical valuations. This system steers clear of both costly growth stocks and heavily reduced value traps, concentrating instead on businesses with lasting expansion possibilities trading at reachable multiples. One filtering tactic using this idea selects for stocks with growth ratings over 7, profitability and health scores suggesting basic stability, and valuation scores above 5 to confirm fair cost.

Harmony Gold Mining Co. Ltd.-Sponsored ADR (NYSE:HMY) appears as a strong candidate within this structure, especially considering its work in South Africa, Papua New Guinea, and Australia. The company's varied mining collection and recent operational upgrades place it favorably in the precious metals industry.

Growth Path

Harmony Gold shows notable expansion measurements that build the foundation of its low-cost growth outline. The company's latest results display considerable speed across important financial signs:

• Earnings Per Share rose 66.97% over the last year
• Revenue grew by 20.39% in the newest reporting term
• Past revenue growth averages 20.37% each year
• Future EPS growth estimated at 23.20% per year
• Anticipated revenue growth of 15.04% yearly from analyst forecasts

These growth numbers notably exceed industry standards and back the company's solid growth rating of 7. The mix of sturdy past results and good future estimates offers assurance in the durability of Harmony Gold's expansion, a key part for GARP investors who want lasting growth instead of short-term jumps.

Valuation Measurements

Even with its notable growth data, Harmony Gold trades at multiples that stay logical compared to both its industry and wider market guides. The company's valuation rating of 9 shows this appealing cost:

• Price/Earnings ratio of 16.34 stacks up well against industry average of 37.17
• Forward P/E of 7.90 shows a major price difference to S&P 500 average of 22.85
• Enterprise Value/EBITDA ratio puts company at a lower cost than 76% of industry rivals
• Price/Free Cash Flow ratio below 83% of mining competitors
• PEG ratio showing repayment for growth stays appealing

The valuation view shows an uncommon mix of growth trading at logical multiples. For low-cost growth investors, this match is vital—it offers contact to expansion while reducing possible loss from extreme valuation add-ons that frequently describe high-growth tales.

Profitability and Financial Condition

Beyond growth and valuation, Harmony Gold displays basic strength in profitability and financial condition, scoring 8 and 7 in these groups. The company's operational effectiveness is clear in several main zones:

• Return on Invested Capital of 20.62% does better than 97% of industry rivals
• Profit margin of 15.68% sits in the top group of mining companies
• Operating margin growth shows getting better efficiency
• Altman-Z score of 8.36 points to very low failure risk
• Debt-to-equity ratio of 0.04 shows a careful capital setup

These measurements give important background for the growth story, showing that expansion is backed by stable operations instead of financial tactics or high borrowing. The solid profitability makes sure that growth turns into shareholder gain, while the sound balance sheet offers steadiness during product price changes common in the mining field.

Investment Points

While Harmony Gold presents a strong low-cost growth outline, investors should be aware of several items. The company's dividend, while steady with a 10-year payment record, gives 1.19% and has had recent drops. Also, share number rises over recent years have caused some thinning, though this seems workable given the company's growth path. The current ratio of 1.84, while sufficient, is behind many industry rivals, though this is lessened by good cash flow creation and small debt load.

For investors looking for like chances, other low-cost growth options can be found using our predefined filtering method that found Harmony Gold. The filter keeps finding companies displaying the growth-valuation balance central to the GARP method.

Disclaimer: This study is based on basic data and ratings accessible through ChartMill's research tools. The information shown should not be taken as investment guidance or a suggestion to purchase or sell any security. Investors should do their own study and think about their personal money situations before making investment choices. Past results do not ensure future outcomes, and all investments carry built-in risks including possible loss of original funds.