Harmony Biosciences Holdings (NASDAQ:HRMY) Emerges as a Top Affordable Growth Stock

Investors looking for growth chances often meet the difficulty of balancing expansion possibility with fair prices, a method usually called Growth at a Reasonable Price (GARP). This method looks for companies showing solid growth paths, good profitability, and stable finances, all while having prices that do not show too much hope. One way to find these companies is through organized filtering, like the "Affordable Growth" screen, which focuses on stocks with high growth, profitability, and health scores, along with good prices. Harmony Biosciences Holdings (NASDAQ:HRMY) appears as a strong example from this filter, deserving a more detailed review of its basic profile.

Growth Path

Harmony Biosciences shows solid growth measures, a key part of the affordable growth method. The company’s earnings per share (EPS) rose by 49.76% over the last year, with an average yearly growth rate of 44.61% in recent years. Revenue growth is also strong, increasing 17.74% in the last year and averaging 160.13% each year over a multi-year span. Looking forward, experts predict continued power, with EPS expected to grow at 39.17% per year and revenue at 16.93%. This ongoing growth shows the company’s skill in benefiting from its commercial-stage products, like WAKIX for narcolepsy, and its pipeline for rare neurological disorders.

Price Attractiveness

A main part of the affordable growth method is finding companies where growth is not hidden by too high prices. Harmony Biosciences does well here, with a ChartMill Valuation Rating of 9 out of 10. Its current price-to-earnings (P/E) ratio of 12.11 is much lower than the industry average of 21.57 and the S&P 500’s 26.84. In the same way, its forward P/E of 9.32 looks good compared to industry and wider market measures. Other price measures support this attractiveness:

• Enterprise Value to EBITDA: lower than 93.85% of industry peers
• Price to Free Cash Flow: lower than 92.82% of industry peers
• PEG Ratio: shows payment for growth is fair

These numbers suggest the market might be pricing Harmony’s growth possibilities too low, matching well with the GARP method’s focus on value-aware growth investing.

Profitability and Financial Soundness

Besides growth and price, affordable growth filters look for companies with good profitability and stable financial soundness to make sure they can last. Harmony Biosciences performs on both, getting a Profitability Rating of 8 and a Health Rating of 8. Its return on equity (23.40%) and return on assets (16.33%) are in the top parts of the pharmaceuticals industry, showing efficient use of money. The company also keeps a sound balance sheet, with a debt-to-equity ratio of 0.20 and good cash availability, as shown by current and quick ratios above 3.8. This financial steadiness lowers risk and helps continued growth efforts without too much need for debt or share dilution.

Conclusion

Harmony Biosciences is a clear example of an affordable growth stock, mixing strong expansion, fair prices, and solid basics. Its high scores in growth, price, profitability, and health areas make it a notable choice for investors using a GARP method. For those wanting to look into similar chances, more results from the Affordable Growth screen can be seen here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research or consult a financial advisor before making investment decisions.