Harmony Biosciences Holdings (NASDAQ:HRMY) was identified by our value stock screener as a company with solid fundamentals and an attractive valuation. The pharmaceutical firm specializes in treatments for neurological disorders and shows strong financial health, profitability, and growth potential.
Valuation
HRMY stands out with a Valuation Rating of 9/10, indicating it may be priced below its intrinsic value. Key points:
- P/E ratio of 13.60 – Below both the industry average (19.03) and the S&P500 (26.60).
- Forward P/E of 8.21 – Significantly lower than peers, suggesting future earnings are undervalued.
- Price/Free Cash Flow – Ranks better than 91.92% of industry competitors.
Financial Health
The company earns an 8/10 Health Rating, reflecting a strong balance sheet:
- Low debt-to-equity ratio (0.22) – Well below concerning levels.
- Current Ratio of 3.67 – Demonstrates ample liquidity to cover short-term obligations.
- Altman-Z score of 5.63 – Indicates low bankruptcy risk, outperforming 82.83% of peers.
Profitability
With a Profitability Rating of 7/10, HRMY delivers consistent earnings:
- Profit Margin of 20.50% – Higher than 92.93% of pharmaceutical firms.
- ROE of 21.20% – Reflects efficient use of shareholder capital.
- Operating Margin of 28.48% – Strong compared to industry standards.
Growth Prospects
HRMY’s Growth Rating of 9/10 highlights its expansion potential:
- Revenue growth (20.62% YoY) – Supported by strong demand for its narcolepsy treatment, WAKIX.
- Expected EPS growth (36.90% annually) – Driven by pipeline developments and market expansion.
For a deeper look, review the full fundamental analysis of HRMY.
Our Decent Value Stock Screener lists more stocks with strong valuations and fundamentals.
Disclaimer
This is not investment advice. Always conduct your own research before making financial decisions.
