Harmony Biosciences Holdings (NASDAQ:HRMY) was identified as an affordable growth stock by our screener, which looks for companies with solid growth prospects, reasonable valuations, and healthy financials. The pharmaceutical firm specializes in treatments for neurological disorders and stands out for its strong fundamentals.
Growth Prospects
HRMY has demonstrated impressive growth, with revenue increasing by 20.62% over the past year and an annualized growth rate of 160.13% over recent years. Earnings per share (EPS) have also grown at a strong pace, with a 44.61% yearly increase. Analysts expect this momentum to continue, projecting EPS growth of 36.90% annually in the coming years.
Attractive Valuation
Despite its growth potential, HRMY remains reasonably priced. Key valuation metrics include:
- P/E ratio of 13.37, below both the industry average (21.34) and the S&P 500 (26.30).
- Forward P/E of 8.07, significantly cheaper than peers.
- Price/Free Cash Flow ratio ranking better than 92.82% of industry competitors.
Financial Health & Profitability
The company maintains a strong balance sheet, with:
- Altman-Z score of 5.57, indicating low bankruptcy risk.
- Debt-to-FCF ratio of 0.79, meaning it could pay off debt in less than a year.
- Profit margin of 20.54%, outperforming 93.85% of pharmaceutical peers.
Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper look, review the full fundamental analysis of HRMY.
Disclaimer
This is not investing advice. Always conduct your own research before making investment decisions.
