Stock Analysis: Affordable Growth

Fundamental Rating

Taking everything into account, HRMY scores 8 out of 10 in our fundamental rating. HRMY was compared to 198 industry peers in the Pharmaceuticals industry. HRMY gets an excellent profitability rating and is at the same time showing great financial health properties. HRMY is evaluated to be cheap and growing strongly. This does not happen too often! 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.

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.

1.2 Ratios

HRMY has a Return On Assets of 14.56%. This is amongst the best in the industry. HRMY outperforms 95.96% of its industry peers.

Looking at the Return On Equity, with a value of 22.07%, HRMY belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.

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

With an excellent Profit Margin value of 20.36%, HRMY belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.

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.

HRMY's Operating Margin has declined in the last couple of years.

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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

Compared to 5 years ago, HRMY has less shares outstanding

The debt/assets ratio for HRMY has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 5.14 indicates that HRMY is not in any danger for bankruptcy at the moment.

The Altman-Z score of HRMY (5.14) is better than 82.32% of its industry peers.

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.

HRMY's Debt to FCF ratio of 0.82 is amongst the best of the industry. HRMY outperforms 94.95% of its industry peers.

A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.

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	5.14

ROIC/WACC1.91

WACC9.9%

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 in line with its industry peers.

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.

		Industry Rank	Sector Rank
Current Ratio	3.31
Quick Ratio	3.27

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HRMY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.82%.

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%.

HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 160.13% yearly.

EPS 1Y (TTM)7.82%

EPS 3Y44.61%

EPS 5YN/A

EPS Q2Q%16.42%

Revenue 1Y (TTM)22.8%

Revenue growth 3Y32.77%

Revenue growth 5Y160.13%

Sales Q2Q%19.48%

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.

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.23 indicates a correct valuation of HRMY.

Based on the Price/Earnings ratio, HRMY is valued cheaper than 87.88% of the companies in the same industry.

The average S&P500 Price/Earnings ratio is at 24.29. HRMY is valued slightly cheaper when compared to this.

HRMY is valuated cheaply with a Price/Forward Earnings ratio of 7.48.

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

When comparing the Price/Forward Earnings ratio of HRMY to the average of the S&P500 Index (20.42), we can say HRMY is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.23
Fwd PE	7.48

4.2 Price Multiples

HRMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRMY is cheaper than 90.40% of the companies in the same industry.

91.92% of the companies in the same industry are more expensive than HRMY, based on the Price/Free Cash Flow ratio.