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. Both the health and profitability get an excellent rating, making HRMY a very profitable company, without any liquidiy or solvency issues. An interesting combination arises when we look at growth and value: HRMY is growing strongly while it also seems undervalued. 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
The Return On Assets of HRMY (14.47%) is better than 95.96% of its industry peers.
Looking at the Return On Equity, with a value of 21.20%, HRMY belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.09%, HRMY belongs to the top of the industry, outperforming 93.43% of the companies in the same industry.
HRMY had an Average Return On Invested Capital over the past 3 years of 18.27%. This is significantly below the industry average of 41.57%.
Industry Rank
Sector Rank
ROA
14.47%
ROE
21.2%
ROIC
18.09%
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 20.50%, 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 28.48%, HRMY belongs to the best of the industry, outperforming 93.43% of the companies in the same industry.
In the last couple of years the Operating Margin of HRMY has declined.
The Gross Margin of HRMY (78.34%) is better than 85.35% of its industry peers.
In the last couple of years the Gross Margin of HRMY has remained more or less at the same level.
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.
Compared to 1 year ago, HRMY has an improved debt to assets ratio.
2.2 Solvency
HRMY has an Altman-Z score of 5.63. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.63, HRMY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
HRMY has a debt to FCF ratio of 0.79. This is a very positive value and a sign of high solvency as it would only need 0.79 years to pay back of all of its debts.
The Debt to FCF ratio of HRMY (0.79) is better than 95.45% of its industry peers.
HRMY has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
HRMY's Debt to Equity ratio of 0.22 is in line compared to the rest of the industry. HRMY outperforms 45.96% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
0.22
Debt/FCF
0.79
Altman-Z
5.63
ROIC/WACC1.82
WACC9.92%
2.3 Liquidity
HRMY has a Current Ratio of 3.67. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a Current ratio of 3.67. This is in the better half of the industry: HRMY outperforms 62.12% of its industry peers.
A Quick Ratio of 3.63 indicates that HRMY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.63, HRMY is in the better half of the industry, outperforming 64.14% of the companies in the same industry.
The Price/Earnings ratio is 13.56, which 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 86.36% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. HRMY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.30 indicates a reasonable valuation of HRMY.
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 20.94, which is the current average of the S&P500 Index.
Industry Rank
Sector Rank
PE
13.56
Fwd PE
8.3
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 88.89% of the companies listed in the same industry.
91.92% of the companies in the same industry are more expensive than HRMY, based on the Price/Free Cash Flow ratio.
Industry Rank
Sector Rank
P/FCF
9.21
EV/EBITDA
7.19
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 a very decent profitability rating, which 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.