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NASDAQ:HRMY stands out as a growth opportunity that won't break the bank.

By Mill Chart

Last update: Jan 10, 2024

Consider HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) as an affordable growth stock, identified by our stock screening tool. NASDAQ:HRMY is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

How do we evaluate the Growth for NASDAQ:HRMY?

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HRMY has earned a 7 for growth:

  • The Revenue has grown by 35.24% in the past year. This is a very strong growth!
  • 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 19.65% on average per year.
  • The Revenue is expected to grow by 22.05% on average over the next years. This is a very strong growth

Looking at the Valuation

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. NASDAQ:HRMY boasts a 8 out of 10:

  • The Price/Earnings ratio is 11.81, which indicates a very decent valuation of HRMY.
  • HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 88.61% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.84. HRMY is valued rather cheaply when compared to this.
  • HRMY is valuated reasonably with a Price/Forward Earnings ratio of 9.14.
  • 93.07% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 20.76. HRMY is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaper than 92.57% of the companies in the same industry.
  • 92.08% of the companies in the same industry are more expensive than HRMY, based on the Price/Free Cash Flow ratio.
  • The decent profitability rating of HRMY may justify a higher PE ratio.
  • HRMY's earnings are expected to grow with 13.43% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NASDAQ:HRMY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:HRMY has earned a 8 out of 10:

  • An Altman-Z score of 5.64 indicates that HRMY is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.64, HRMY belongs to the top of the industry, outperforming 81.19% 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.
  • With an excellent Debt to FCF ratio value of 1.16, HRMY belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
  • A Debt/Equity ratio of 0.38 indicates that HRMY is not too dependend on debt financing.
  • 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.
  • A Current Ratio of 4.12 indicates that HRMY has no problem at all paying its short term obligations.
  • A Quick Ratio of 4.07 indicates that HRMY has no problem at all paying its short term obligations.

Profitability Assessment of NASDAQ:HRMY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HRMY, the assigned 7 is noteworthy for profitability:

  • With an excellent Return On Assets value of 19.39%, HRMY belongs to the best of the industry, outperforming 96.53% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 31.33%, HRMY belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
  • The Return On Invested Capital of HRMY (23.67%) is better than 96.53% 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.
  • The Profit Margin of HRMY (27.83%) is better than 96.53% of its industry peers.
  • HRMY has a Operating Margin of 36.80%. This is amongst the best in the industry. HRMY outperforms 97.03% of its industry peers.
  • HRMY has a better Gross Margin (80.62%) than 84.65% of its industry peers.
  • In the last couple of years the Gross Margin of HRMY has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HRMY

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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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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