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Looking for growth without the hefty price tag? Consider NASDAQ:HRMY.

By Mill Chart

Last update: Nov 27, 2023

HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:HRMY is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

A Closer Look at Growth for NASDAQ:HRMY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:HRMY boasts a 7 out of 10:

  • HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.24%.
  • HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 317.90% yearly.
  • Based on estimates for the next years, HRMY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.61% on average per year.
  • HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.61% yearly.

Exploring NASDAQ:HRMY's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:HRMY scores a 8 out of 10:

  • HRMY is valuated reasonably with a Price/Earnings ratio of 10.52.
  • Based on the Price/Earnings ratio, HRMY is valued cheaply inside the industry as 88.29% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 24.55. HRMY is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 8.99, which indicates a very decent valuation of HRMY.
  • 88.78% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
  • HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.64, which is the current average of the S&P500 Index.
  • Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 93.17% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 91.71% of the companies in the same industry.
  • The decent profitability rating of HRMY may justify a higher PE ratio.
  • HRMY's earnings are expected to grow with 12.24% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:HRMY

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HRMY has received a 8 out of 10:

  • HRMY has an Altman-Z score of 5.22. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.22, HRMY belongs to the top of the industry, outperforming 83.90% of the companies in the same industry.
  • HRMY has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
  • HRMY has a Debt to FCF ratio of 1.16. This is amongst the best in the industry. HRMY outperforms 93.17% of its industry peers.
  • HRMY has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
  • Although HRMY 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.
  • HRMY has a Current Ratio of 4.12. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
  • A Quick Ratio of 4.07 indicates that HRMY has no problem at all paying its short term obligations.

How do we evaluate the Profitability for NASDAQ:HRMY?

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:HRMY has achieved a 7:

  • The Return On Assets of HRMY (19.39%) is better than 96.59% of its industry peers.
  • HRMY's Return On Equity of 31.33% is amongst the best of the industry. HRMY outperforms 94.63% of its industry peers.
  • HRMY's Return On Invested Capital of 23.67% is amongst the best of the industry. HRMY outperforms 96.59% of its industry peers.
  • The last Return On Invested Capital (23.67%) for HRMY is above the 3 year average (12.91%), which is a sign of increasing profitability.
  • HRMY's Profit Margin of 27.83% is amongst the best of the industry. HRMY outperforms 96.59% of its industry peers.
  • HRMY's Operating Margin of 36.80% is amongst the best of the industry. HRMY outperforms 97.07% of its industry peers.
  • HRMY's Gross Margin of 80.62% is amongst the best of the industry. HRMY outperforms 85.37% of its industry peers.
  • In the last couple of years the Gross Margin of HRMY has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.

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HARMONY BIOSCIENCES HOLDINGS

NASDAQ:HRMY (6/14/2024, 7:14:27 PM)

After market: 29.05 0 (0%)

29.05

-0.71 (-2.39%)

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