HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) - A Strong Candidate for Affordable Growth Investors

HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) was identified as an affordable growth stock by our screener, which looks for companies with solid growth, reasonable valuations, and healthy fundamentals. HRMY stands out with strong profitability, financial health, and an attractive valuation relative to its growth prospects.

Growth Prospects

HRMY has demonstrated impressive growth, with revenue increasing by 20.62% over the past year and an average annual growth rate of 160.13% in recent years. Earnings per share (EPS) have also grown at a robust 44.61% annualized rate. Looking ahead, analysts expect EPS to rise by 35.76% and revenue by 18.23% annually, indicating sustained momentum.

Attractive Valuation

Despite its strong growth, HRMY remains reasonably priced. The stock trades at a P/E ratio of 12.16, significantly below the S&P 500 average of 26.86. Its forward P/E of 7.77 suggests further upside potential. Compared to industry peers, HRMY is cheaper than 88% of pharmaceutical companies based on P/E and 93% based on Enterprise Value to EBITDA.

Profitability & Financial Health

HRMY scores well on profitability, with a Return on Invested Capital (ROIC) of 18.05%, outperforming 94% of its peers. Its operating margin of 28.46% is also among the best in the industry. Financially, the company maintains a strong balance sheet with a low debt-to-equity ratio of 0.22 and ample liquidity, reflected in a current ratio of 3.67.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper analysis, review the full fundamental report on HRMY.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own research before making investment decisions.