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

We assign a fundamental rating of 8 out of 10 to HRMY. HRMY was compared to 198 industry peers in the Pharmaceuticals industry. HRMY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HRMY is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make HRMY suitable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year HRMY was profitable.
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.
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

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.
HRMY has a better Return On Equity (22.07%) than 92.93% of its industry peers.
HRMY has a better Return On Invested Capital (18.94%) than 93.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HRMY 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 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's Profit Margin of 20.36% is amongst the best of the industry. HRMY outperforms 92.42% of its industry peers.
In the last couple of years the Profit Margin of HRMY has grown nicely.
HRMY has a Operating Margin of 29.09%. This is amongst the best in the industry. HRMY outperforms 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.
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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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRMY is creating value.
The number of shares outstanding for HRMY has been increased compared to 1 year ago.
HRMY has less shares outstanding than it did 5 years ago.
HRMY has a better debt/assets ratio than last year.
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

HRMY has an Altman-Z score of 5.14. This indicates that HRMY is financially healthy and has little risk of 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 has a Debt to FCF ratio of 0.82. This is amongst the best in the industry. HRMY outperforms 94.95% of its industry peers.
HRMY has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
HRMY has a Debt to Equity ratio (0.25) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 0.82
Altman-Z 5.14
ROIC/WACC1.91
WACC9.9%
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.
Looking at the Current ratio, with a value of 3.31, HRMY is in line with its industry, outperforming 56.57% of the companies in the same industry.
A Quick Ratio of 3.27 indicates that HRMY has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.27, HRMY is doing good in the industry, outperforming 60.10% of the companies in the same industry.
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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9

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
The Revenue has grown by 22.80% in the past year. This is a very strong growth!
The Revenue has been growing by 160.13% on average over the past years. This is a very strong growth!
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

HRMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.90% yearly.
The Revenue is expected to grow by 21.10% on average over the next years. This is a very strong growth
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

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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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9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.76, HRMY is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, HRMY is valued a bit cheaper.
With a Price/Forward Earnings ratio of 7.81, the valuation of HRMY can be described as very cheap.
HRMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 92.42% of the companies in the same industry.
HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.76
Fwd PE 7.81
HRMY Price Earnings VS Forward Price EarningsHRMY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HRMY is valued 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.
Industry RankSector Rank
P/FCF 8.78
EV/EBITDA 6.63
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

HRMY's 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.
HRMY's earnings are expected to grow with 31.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y30.64%
EPS Next 3Y31.63%

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0

5. Dividend

5.1 Amount

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

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