Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


HARMONY BIOSCIENCES HOLDINGS

Nasdaq / Health Care / Pharmaceuticals

Fundamental Rating

8

Overall HRMY gets a fundamental rating of 8 out of 10. We evaluated HRMY against 198 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making HRMY a very profitable company, without any liquidiy or solvency issues. HRMY is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, HRMY could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year HRMY was profitable.
HRMY had a positive operating cash flow in the past year.
HRMY had positive earnings in 4 of the past 5 years.
HRMY had a positive operating cash flow in 4 of the past 5 years.
HRMY Yearly Net Income VS EBIT VS OCF VS FCFHRMY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of 14.56%, HRMY belongs to the top of the industry, outperforming 95.96% of the companies in the same industry.
The Return On Equity of HRMY (22.07%) is better than 92.93% of its industry peers.
With an excellent Return On Invested Capital value of 18.94%, HRMY belongs to the best of the industry, outperforming 93.43% of the companies in the same industry.
HRMY had an Average Return On Invested Capital over the past 3 years of 18.27%. This is significantly below the industry average of 41.62%.
The 3 year average ROIC (18.27%) for HRMY is below the current ROIC(18.94%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 14.56%
ROE 22.07%
ROIC 18.94%
ROA(3y)19.12%
ROA(5y)10.08%
ROE(3y)31.57%
ROE(5y)9.53%
ROIC(3y)18.27%
ROIC(5y)15.29%
HRMY Yearly ROA, ROE, ROICHRMY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K

1.3 Margins

HRMY has a Profit Margin of 20.36%. This is amongst the best in the industry. HRMY outperforms 92.42% of its industry peers.
HRMY's Profit Margin has improved in the last couple of years.
HRMY has a better Operating Margin (29.09%) than 93.43% of its industry peers.
In the last couple of years the Operating Margin of HRMY has declined.
HRMY has a Gross Margin of 78.06%. This is amongst the best in the industry. HRMY outperforms 84.34% of its industry peers.
HRMY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 29.09%
PM (TTM) 20.36%
GM 78.06%
OM growth 3Y-2.32%
OM growth 5YN/A
PM growth 3Y21.57%
PM growth 5YN/A
GM growth 3Y-1.56%
GM growth 5Y1.26%
HRMY Yearly Profit, Operating, Gross MarginsHRMY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 -1K -2K -3K

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2. Health

2.1 Basic Checks

HRMY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HRMY has more shares outstanding
Compared to 5 years ago, HRMY has less shares outstanding
The debt/assets ratio for HRMY has been reduced compared to a year ago.
HRMY Yearly Shares OutstandingHRMY Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
HRMY Yearly Total Debt VS Total AssetsHRMY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 4.96 indicates that HRMY is not in any danger for bankruptcy at the moment.
The Altman-Z score of HRMY (4.96) is better than 81.82% of its industry peers.
HRMY has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.82, HRMY belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
HRMY has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 0.82
Altman-Z 4.96
ROIC/WACC1.91
WACC9.91%
HRMY Yearly LT Debt VS Equity VS FCFHRMY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 3.31 indicates that HRMY has no problem at all paying its short term obligations.
HRMY has a Current ratio (3.31) which is comparable to the rest of the industry.
A Quick Ratio of 3.27 indicates that HRMY has no problem at all paying its short term obligations.
HRMY has a Quick ratio of 3.27. This is in the better half of the industry: HRMY outperforms 60.10% of its industry peers.
Industry RankSector Rank
Current Ratio 3.31
Quick Ratio 3.27
HRMY Yearly Current Assets VS Current LiabilitesHRMY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.72% over the past year.
HRMY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.61% yearly.
HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.80%.
The Revenue has been growing by 160.13% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)3.72%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%88.89%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.51%

3.2 Future

The Earnings Per Share is expected to grow by 36.90% on average over the next years. This is a very strong growth
Based on estimates for the next years, HRMY will show a very strong growth in Revenue. The Revenue will grow by 21.10% on average per year.
EPS Next Y25.16%
EPS Next 2Y30.64%
EPS Next 3Y31.63%
EPS Next 5Y36.9%
Revenue Next Year17.81%
Revenue Next 2Y18.1%
Revenue Next 3Y18.92%
Revenue Next 5Y21.1%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
HRMY Yearly Revenue VS EstimatesHRMY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B
HRMY Yearly EPS VS EstimatesHRMY Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 4 6 8 10

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.08, which indicates a correct valuation of HRMY.
HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 89.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.18, HRMY is valued rather cheaply.
A Price/Forward Earnings ratio of 9.65 indicates a reasonable valuation of HRMY.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
HRMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.81.
Industry RankSector Rank
PE 12.08
Fwd PE 9.65
HRMY Price Earnings VS Forward Price EarningsHRMY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

91.92% of the companies in the same industry are more expensive than HRMY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 92.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.96
EV/EBITDA 6.2
HRMY Per share dataHRMY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HRMY has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HRMY's earnings are expected to grow with 31.63% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y30.64%
EPS Next 3Y31.63%

0

5. Dividend

5.1 Amount

No dividends for HRMY!.
Industry RankSector Rank
Dividend Yield N/A