Stock Analysis: Affordable Growth

Fundamental Rating

Overall HRMY gets a fundamental rating of 8 out of 10. We evaluated HRMY against 198 industry peers in the Pharmaceuticals industry. HRMY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HRMY has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes HRMY very considerable for value and growth and quality investing!

1. Profitability

1.1 Basic Checks

HRMY had positive earnings in the past year.

HRMY had a positive operating cash flow in the past year.

Of the past 5 years HRMY 4 years were profitable.

HRMY had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 14.56%, HRMY belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.

HRMY has a Return On Equity of 22.07%. This is amongst the best in the industry. HRMY outperforms 92.93% of its industry peers.

The Return On Invested Capital of HRMY (18.94%) is better than 93.43% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for HRMY is significantly below the industry average of 41.67%.

The 3 year average ROIC (18.27%) for HRMY is below the current ROIC(18.94%), indicating increased profibility in the last year.

		Industry Rank	Sector 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%

1.3 Margins

HRMY has a better Profit Margin (20.36%) than 92.42% of its industry peers.

In the last couple of years the Profit Margin of HRMY has grown nicely.

With an excellent Operating Margin value of 29.09%, HRMY belongs to the best of the industry, outperforming 93.43% of the companies in the same industry.

In the last couple of years the Operating Margin of HRMY has declined.

With an excellent Gross Margin value of 78.06%, HRMY belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.

In the last couple of years the Gross Margin of HRMY has remained more or less at the same level.

		Industry Rank	Sector 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRMY is creating value.

Compared to 1 year ago, HRMY has more shares outstanding

The number of shares outstanding for HRMY has been reduced compared to 5 years ago.

HRMY has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.96 indicates that HRMY is not in any danger for bankruptcy at the moment.

With an excellent Altman-Z score value of 4.96, HRMY belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.

The Debt to FCF ratio of HRMY is 0.82, which is an excellent value as it means it would take HRMY, only 0.82 years of fcf income to pay off 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.

HRMY has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.

HRMY's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. HRMY outperforms 45.96% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.25
Debt/FCF	0.82
Altman-Z	4.96

ROIC/WACC1.94

WACC9.76%

2.3 Liquidity

A Current Ratio of 3.31 indicates that HRMY has no problem at all paying its short term obligations.

The Current ratio of HRMY (3.31) is comparable to the rest of the industry.

HRMY has a Quick Ratio of 3.27. This indicates that HRMY is financially healthy and has no problem in meeting 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 Rank	Sector Rank
Current Ratio	3.31
Quick Ratio	3.27

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.72% over the past year.

The Earnings Per Share has been growing by 44.61% on average over the past years. This is a very strong growth

Looking at the last year, HRMY shows a very strong growth in Revenue. 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

HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.10% yearly.

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.08, which indicates a correct valuation of HRMY.

Based on the Price/Earnings ratio, HRMY is valued cheaper than 89.39% of the companies in the same industry.

The average S&P500 Price/Earnings ratio is at 28.22. HRMY is valued rather cheaply when compared to this.

The Price/Forward Earnings ratio is 9.65, which indicates a very decent 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 20.86.

		Industry Rank	Sector Rank
PE	12.08
Fwd PE	9.65

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaper than 91.92% of the companies in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 92.42% of the companies listed in the same industry.