Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
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!.
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.
Of the past 5 years HRMY 4 years had a positive operating cash flow.
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.
HRMY's Return On Equity of 22.07% is amongst the best of the industry. HRMY outperforms 92.93% of its industry peers.
HRMY's Return On Invested Capital of 18.94% is amongst the best of the industry. HRMY outperforms 93.43% of its industry peers.
HRMY had an Average Return On Invested Capital over the past 3 years of 18.27%. This is significantly below the industry average of 41.61%.
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 Profit Margin of 20.36%. This is amongst the best in the industry. HRMY outperforms 92.42% of its industry peers.
In the last couple of years the Profit Margin of HRMY has grown nicely.
Looking at the Operating Margin, with a value of 29.09%, HRMY belongs to the top 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.
The Gross Margin of HRMY (78.06%) is better than 84.34% of its industry peers.
HRMY's Gross Margin has been stable in the last couple of years.
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HRMY is creating value.
The number of shares outstanding for HRMY has been increased compared to 1 year ago.
The number of shares outstanding for HRMY has been reduced compared to 5 years ago.
Compared to 1 year ago, HRMY has an improved debt to assets ratio.
2.2 Solvency
HRMY has an Altman-Z score of 5.28. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.28, HRMY belongs to the best of the industry, outperforming 82.83% 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.
The Debt to FCF ratio of HRMY (0.82) is better than 94.95% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, HRMY perfoms like the industry average, outperforming 45.96% of the companies in the same industry.
Industry Rank
Sector Rank
Debt/Equity
0.25
Debt/FCF
0.82
Altman-Z
5.28
ROIC/WACC1.93
WACC9.84%
2.3 Liquidity
HRMY has a Current Ratio of 3.31. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.31, HRMY perfoms like the industry average, outperforming 56.57% of the companies in the same 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 better Quick ratio (3.27) than 60.10% of its industry peers.
Based on the Price/Earnings ratio of 12.97, the valuation of HRMY can be described as correct.
87.88% of the companies in the same industry are more expensive than HRMY, based on the Price/Earnings ratio.
HRMY is valuated rather cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.93 indicates a rather cheap valuation of HRMY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 90.40% of the companies listed in the same industry.
HRMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.35.
Industry Rank
Sector Rank
PE
12.97
Fwd PE
7.93
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
91.41% of the companies in the same industry are more expensive than HRMY, based on the Price/Free Cash Flow ratio.
Industry Rank
Sector Rank
P/FCF
8.92
EV/EBITDA
6.97
4.3 Compensation for Growth
HRMY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of HRMY 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.