HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY), a growth stock which is not overvalued.

Discover HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY), an undervalued growth gem identified by our stock screener. NASDAQ:HRMY is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Deciphering NASDAQ:HRMY's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:HRMY has achieved a 8 out of 10:

• HRMY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.61% yearly.
• The Revenue has grown by 22.80% 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 160.13% yearly.
• Based on estimates for the next years, HRMY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% on average per year.
• The Revenue is expected to grow by 19.91% on average over the next years. This is quite good.

Valuation Assessment of NASDAQ:HRMY

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:HRMY was assigned a score of 9 for valuation:

• HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 89.58% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.59, HRMY is valued rather cheaply.
• HRMY is valuated reasonably with a Price/Forward Earnings ratio of 9.96.
• Based on the Price/Forward Earnings ratio, HRMY is valued cheaper than 89.06% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.45, HRMY is valued rather cheaply.
• 92.19% of the companies in the same industry are more expensive than HRMY, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 92.71% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent 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 48.08% in the coming years.

Assessing Health Metrics for NASDAQ:HRMY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:HRMY has earned a 8 out of 10:

• An Altman-Z score of 5.30 indicates that HRMY is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.30, HRMY belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
• The Debt to FCF ratio of HRMY is 0.82, which is an excellent value as it means it would take HRMY, only 0.82 years of fcf income to pay off all of its debts.
• HRMY's Debt to FCF ratio of 0.82 is amongst the best of the industry. HRMY outperforms 96.35% of its industry peers.
• A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
• A Current Ratio of 3.31 indicates that HRMY has no problem at all paying its short term obligations.
• HRMY has a Quick Ratio of 3.27. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination 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 8:

• HRMY's Return On Assets of 14.56% is amongst the best of the industry. HRMY outperforms 96.88% of its industry peers.
• With an excellent Return On Equity value of 22.07%, HRMY belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 18.94%, HRMY belongs to the best of the industry, outperforming 94.27% of the companies in the same industry.
• The last Return On Invested Capital (18.94%) for HRMY is above the 3 year average (18.27%), which is a sign of increasing profitability.
• HRMY's Profit Margin of 20.36% is amongst the best of the industry. HRMY outperforms 92.71% of its industry peers.
• In the last couple of years the Profit Margin of HRMY has grown nicely.
• HRMY's Operating Margin of 29.09% is amongst the best of the industry. HRMY outperforms 92.71% of its industry peers.
• HRMY's Gross Margin of 78.06% is amongst the best of the industry. HRMY outperforms 83.33% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of HRMY for a complete fundamental analysis.

Keep in mind

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.