HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) – An Undervalued Stock with Strong Fundamentals

HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) was identified by our Decent Value stock screener as a company with an attractive valuation while maintaining solid profitability, financial health, and growth potential. The stock appears undervalued relative to its industry peers, making it a candidate for value investors. Below, we examine the key aspects of its fundamentals.

Valuation

HRMY scores a 9/10 in valuation, indicating it is priced attractively compared to its earnings and cash flow. Key highlights include:

• P/E ratio of 12.23, well below the industry average of 19.94 and the S&P 500 average of 27.21.
• Forward P/E of 7.81, suggesting further upside potential.
• Enterprise Value/EBITDA and Price/Free Cash Flow ratios are lower than 93% of its pharmaceutical peers.

Financial Health

With a Health rating of 9/10, HRMY demonstrates strong solvency and liquidity:

• Debt-to-Equity ratio of 0.22, indicating a conservative capital structure.
• Current Ratio of 3.67 and Quick Ratio of 3.64, reflecting ample liquidity to cover short-term obligations.
• Altman-Z score of 5.26, signaling low bankruptcy risk.

Profitability

HRMY earns an 8/10 in profitability, supported by:

• Return on Equity (ROE) of 21.22%, outperforming 93% of industry peers.
• Operating Margin of 28.46%, ranking in the top 6% of its sector.
• Profit Margin of 20.54%, reflecting efficient cost management.

Growth

The company maintains an 8/10 Growth rating, with:

• Revenue growth of 20.62% YoY and a 3-year average growth of 160.13%.
• Expected EPS growth of 35.76% annually over the next few years.

For a deeper analysis, review the full fundamental report on HRMY.

Our Decent Value screener lists more stocks with strong valuations and fundamentals, updated daily.

Disclaimer

This is not investment advice. The observations are based on data available at the time of writing. Always conduct your own research before making investment decisions.