Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.
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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! 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.
Of the past 5 years HRMY 4 years had a positive operating cash flow.
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 93.94% 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.
Measured over the past 3 years, the Average Return On Invested Capital for HRMY is significantly below the industry average of 41.67%.
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's Profit Margin of 20.36% is amongst the best of the industry. HRMY outperforms 92.93% 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.
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.
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
An Altman-Z score of 4.91 indicates that HRMY is not in any danger for bankruptcy at the moment.
HRMY has a Altman-Z score of 4.91. This is amongst the best in the industry. HRMY outperforms 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.
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.
HRMY has a Debt to Equity ratio (0.25) which is in line with its industry peers.
Industry Rank
Sector Rank
Debt/Equity
0.25
Debt/FCF
0.82
Altman-Z
4.91
ROIC/WACC1.96
WACC9.65%
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.
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.
Based on the Price/Earnings ratio of 12.02, the valuation of HRMY can be described as correct.
Based on the Price/Earnings ratio, HRMY is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
HRMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.75.
Based on the Price/Forward Earnings ratio of 9.60, the valuation of HRMY can be described as reasonable.
88.89% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
Industry Rank
Sector Rank
PE
12.02
Fwd PE
9.6
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 92.42% 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 92.42% of the companies listed in the same industry.
Industry Rank
Sector Rank
P/FCF
7.92
EV/EBITDA
6.08
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.