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. 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! 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.
In the past year HRMY had a positive cash flow from operations.
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.
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 41.62%.
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 has a better Profit Margin (20.36%) than 92.42% of its industry peers.
HRMY's Profit Margin has improved in the last couple of years.
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.
HRMY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for HRMY has been reduced compared to a year ago.
2.2 Solvency
HRMY has an Altman-Z score of 4.92. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
HRMY has a better Altman-Z score (4.92) than 81.82% of its industry peers.
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.
HRMY has a Debt to Equity ratio of 0.25. This is comparable 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
4.92
ROIC/WACC1.91
WACC9.91%
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.
A Quick Ratio of 3.27 indicates that HRMY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.27, HRMY is in the better half of the industry, outperforming 60.10% of the companies in the same industry.