Stock Analysis: Decent Value Stocks

Fundamental Rating

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 is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make HRMY a good candidate 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.

HRMY had positive earnings in 4 of the past 5 years.

HRMY had a positive operating cash flow in 4 of the past 5 years.

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 has a better Return On Equity (22.07%) than 92.93% of its industry peers.

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 41.62%.

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

Looking at the Profit Margin, with a value of 20.36%, HRMY belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.

In the last couple of years the Profit Margin of HRMY has grown nicely.

With an excellent Operating Margin value of 29.09%, HRMY belongs to the best 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.

In the last couple of years the Gross Margin of HRMY has remained more or less at the same level.

		Industry Rank	Sector 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HRMY 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 4.92 indicates that HRMY is not in any danger for bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 4.92, HRMY belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.

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 better Debt to FCF ratio (0.82) than 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 comparable to the rest of the industry.

		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.

HRMY has a Current ratio (3.31) which is in line with its industry peers.

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.

		Industry Rank	Sector Rank
Current Ratio	3.31
Quick Ratio	3.27

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.72% over the past year.

HRMY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.61% yearly.

Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 22.80%.

HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 160.13% yearly.

EPS 1Y (TTM)3.72%

EPS 3Y44.61%

EPS 5YN/A

EPS Q2Q%88.89%

Revenue 1Y (TTM)22.8%

Revenue growth 3Y32.77%

Revenue growth 5Y160.13%

Sales Q2Q%19.51%

3.2 Future

The Earnings Per Share is expected to grow by 36.90% on average over the next years. This is a very strong growth

HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.10% yearly.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.28, the valuation of HRMY can be described as correct.

88.89% of the companies in the same industry are more expensive than HRMY, based on the Price/Earnings ratio.

When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (28.10), we can say HRMY is valued rather cheaply.

With a Price/Forward Earnings ratio of 9.81, the valuation of HRMY can be described as very reasonable.

Based on the Price/Forward Earnings ratio, HRMY is valued cheaper than 88.38% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 20.74. HRMY is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	12.28
Fwd PE	9.81

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.

92.42% of the companies in the same industry are more expensive than HRMY, based on the Price/Free Cash Flow ratio.