Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
We assign a fundamental rating of 8 out of 10 to HRMY. HRMY was compared to 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make HRMY suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
HRMY had positive earnings in the past year.
In the past year HRMY had a positive cash flow from operations.
Of the past 5 years HRMY 4 years were profitable.
Of the past 5 years HRMY 4 years had a positive operating cash flow.
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.
With an excellent Return On Equity value of 22.07%, HRMY belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
The Return On Invested Capital of HRMY (18.94%) is better 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 last Return On Invested Capital (18.94%) for HRMY is above the 3 year average (18.27%), which is a sign of increasing profitability.
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's Profit Margin of 20.36% is amongst the best of the industry. HRMY outperforms 92.42% of its industry peers.
HRMY's Profit Margin has improved in the last couple of years.
HRMY's Operating Margin of 29.09% is amongst the best of the industry. HRMY outperforms 93.43% of its industry peers.
In the last couple of years the Operating Margin of HRMY has declined.
HRMY has a better Gross Margin (78.06%) than 84.34% of its industry peers.
HRMY's Gross Margin has been stable in the last couple of years.
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
HRMY has less shares outstanding than it did 5 years ago.
HRMY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.14 indicates that HRMY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.14, HRMY belongs to the best of the industry, outperforming 82.32% of the companies in the same industry.
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.
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.
A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
The Debt to Equity ratio of HRMY (0.25) is comparable to the rest of the industry.
Industry Rank
Sector Rank
Debt/Equity
0.25
Debt/FCF
0.82
Altman-Z
5.14
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.
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 better Quick ratio (3.27) than 60.10% of its industry peers.
A Price/Earnings ratio of 12.76 indicates a correct valuation of HRMY.
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.
When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (23.99), we can say HRMY is valued slightly cheaper.
A Price/Forward Earnings ratio of 7.81 indicates a rather cheap valuation of HRMY.
92.42% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HRMY to the average of the S&P500 Index (20.35), we can say HRMY is valued rather cheaply.
Industry Rank
Sector Rank
PE
12.76
Fwd PE
7.81
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 90.40% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 91.92% of the companies listed in the same industry.
Industry Rank
Sector Rank
P/FCF
8.78
EV/EBITDA
6.63
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.
A more expensive valuation may be justified as HRMY's earnings are expected to grow with 31.63% in the coming years.