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! These ratings would make HRMY suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HRMY was profitable.
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
The Return On Assets of HRMY (14.56%) is better than 95.96% of its industry peers.
HRMY has a Return On Equity of 22.07%. This is amongst the best in 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 41.67%.
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 has a Profit Margin of 20.36%. This is amongst the best in the industry. HRMY outperforms 92.42% of its industry peers.
In the last couple of years the Profit Margin of HRMY has grown nicely.
Looking at the Operating Margin, with a value of 29.09%, HRMY belongs to the top of the industry, outperforming 93.43% of the companies in the same industry.
HRMY's Operating Margin has declined in the last couple of years.
HRMY has a Gross Margin of 78.06%. This is amongst the best in the industry. HRMY outperforms 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.
HRMY has more shares outstanding than it did 1 year ago.
HRMY has less shares outstanding than it did 5 years ago.
HRMY has a better debt/assets ratio than last year.
2.2 Solvency
HRMY has an Altman-Z score of 4.96. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRMY (4.96) is better 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.
Looking at the Debt to Equity ratio, with a value of 0.25, HRMY is in line with its industry, outperforming 45.96% of the companies in the same industry.
Industry Rank
Sector Rank
Debt/Equity
0.25
Debt/FCF
0.82
Altman-Z
4.96
ROIC/WACC1.94
WACC9.76%
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.
HRMY has a Current ratio of 3.31. This is comparable to the rest of the industry: HRMY outperforms 56.57% of its industry peers.
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.
With a Price/Earnings ratio of 12.08, 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 89.39% of the companies listed in the same industry.
HRMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
The Price/Forward Earnings ratio is 9.65, which indicates a very decent valuation of HRMY.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
Industry Rank
Sector Rank
PE
12.08
Fwd PE
9.65
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaper than 91.92% of the companies in the same industry.
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
7.96
EV/EBITDA
6.2
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.
HRMY's earnings are expected to grow with 31.63% in the coming years. This may justify a more expensive valuation.