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NASDAQ:HRMY: good value for what you're paying.

By Mill Chart

Last update: Jan 25, 2024

Our stock screening tool has identified HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) as an undervalued gem with strong fundamentals. NASDAQ:HRMY boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Exploring NASDAQ:HRMY's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:HRMY has received a 8 out of 10:

  • The Price/Earnings ratio is 11.12, which indicates a very decent valuation of HRMY.
  • Based on the Price/Earnings ratio, HRMY is valued cheaper than 89.16% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (25.83), we can say HRMY is valued rather cheaply.
  • The Price/Forward Earnings ratio is 8.60, which indicates a very decent valuation of HRMY.
  • Based on the Price/Forward Earnings ratio, HRMY is valued cheaper than 94.09% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 20.78. HRMY is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 93.60% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, HRMY is valued cheaply inside the industry as 92.61% of the companies are valued more expensively.
  • The decent profitability rating of HRMY may justify a higher PE ratio.
  • A more expensive valuation may be justified as HRMY's earnings are expected to grow with 13.43% in the coming years.

A Closer Look at 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:

  • With an excellent Return On Assets value of 19.39%, HRMY belongs to the best of the industry, outperforming 96.55% 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 95.07% of the companies in the same industry.
  • HRMY has a better Return On Invested Capital (23.67%) than 96.55% 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 has a Profit Margin of 27.83%. This is amongst the best in the industry. HRMY outperforms 96.55% of its industry peers.
  • HRMY has a better Operating Margin (36.80%) than 97.04% of its industry peers.
  • HRMY's Gross Margin of 80.62% is amongst the best of the industry. HRMY outperforms 84.73% of its industry peers.
  • In the last couple of years the Gross Margin of HRMY has grown nicely.

A Closer Look at Health for NASDAQ:HRMY

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. NASDAQ:HRMY has achieved a 8 out of 10:

  • An Altman-Z score of 5.42 indicates that HRMY is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.42, HRMY belongs to the top of the industry, outperforming 81.28% 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.
  • Looking at the Debt to FCF ratio, with a value of 1.16, HRMY belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
  • A Debt/Equity ratio of 0.38 indicates that HRMY is not too dependend on debt financing.
  • Even though the debt/equity ratio score it not favorable for HRMY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
  • A Current Ratio of 4.12 indicates that HRMY has no problem at all paying its short term obligations.
  • HRMY has a Quick Ratio of 4.07. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.

How We Gauge Growth for NASDAQ:HRMY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HRMY has received a 7 out of 10:

  • The Revenue has grown by 35.24% in the past year. This is a very strong growth!
  • The Revenue has been growing by 317.90% on average over the past years. This is a very strong growth!
  • 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.
  • HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.05% yearly.

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

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

Disclaimer

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.

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