HARMONY BIOSCIENCES HOLDINGS (HRMY) Stock Fundamental Analysis
NASDAQ:HRMY - Nasdaq - US4131971040 - Common Stock - Currency: USD
Overall HRMY gets a fundamental rating of 8 out of 10. We evaluated HRMY against 195 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. With these ratings, HRMY could be worth investigating further 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.
Of the past 5 years HRMY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HRMY (14.49%) is better than 96.41% of its industry peers.
With an excellent Return On Equity value of 21.22%, HRMY belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
HRMY's Return On Invested Capital of 18.05% is amongst the best of the industry. HRMY outperforms 94.36% of its industry peers.
HRMY had an Average Return On Invested Capital over the past 3 years of 18.26%. This is above the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 21.22% | ||
| ROIC | 18.05% |
ROA(3y)19.12%
ROA(5y)10.08%
ROE(3y)31.56%
ROE(5y)9.52%
ROIC(3y)18.26%
ROIC(5y)15.28%
1.3 Margins
HRMY's Profit Margin of 20.54% is amongst the best of the industry. HRMY outperforms 93.85% of its industry peers.
In the last couple of years the Profit Margin of HRMY has grown nicely.
HRMY has a Operating Margin of 28.46%. This is amongst the best in the industry. HRMY outperforms 94.36% of its industry peers.
In the last couple of years the Operating Margin of HRMY has declined.
HRMY's Gross Margin of 78.34% is amongst the best of the industry. HRMY outperforms 86.67% of its industry peers.
HRMY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.46% | ||
| PM (TTM) | 20.54% | ||
| GM | 78.34% |
OM growth 3Y-2.3%
OM growth 5YN/A
PM growth 3Y21.43%
PM growth 5YN/A
GM growth 3Y-1.56%
GM growth 5Y1.26%
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 about the same amount of shares outstanding.
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 5.26. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRMY (5.26) is better than 82.05% of its industry peers.
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.
HRMY has a Debt to FCF ratio of 0.79. This is amongst the best in the industry. HRMY outperforms 96.41% 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 43.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.79 | ||
| Altman-Z | 5.26 |
ROIC/WACC1.83
WACC9.86%
2.3 Liquidity
A Current Ratio of 3.67 indicates that HRMY has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.67, HRMY is doing good in the industry, outperforming 60.51% of the companies in the same industry.
HRMY has a Quick Ratio of 3.64. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a better Quick ratio (3.64) than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.82% over the past year.
The Earnings Per Share has been growing by 44.61% on average over the past years. This is a very strong growth
The Revenue has grown by 20.62% in the past year. This is a very strong growth!
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 160.13% yearly.
EPS 1Y (TTM)7.82%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%16.42%
Revenue 1Y (TTM)20.62%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.48%
3.2 Future
The Earnings Per Share is expected to grow by 35.76% on average over the next years. This is a very strong growth
HRMY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.23% yearly.
EPS Next Y33.8%
EPS Next 2Y27.83%
EPS Next 3Y28.9%
EPS Next 5Y35.76%
Revenue Next Year17.85%
Revenue Next 2Y17.93%
Revenue Next 3Y18.6%
Revenue Next 5Y18.23%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.26, 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 88.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (27.28), we can say HRMY is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.83, the valuation of HRMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 88.21% of the companies are valued more expensively.
HRMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
HRMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRMY is cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaply inside the industry as 92.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
The 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 28.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y27.83%
EPS Next 3Y28.9%
5. Dividend
5.1 Amount
HRMY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.11
+0.08 (+0.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.19%
Inst Owner Change-2.03%
Ins Owners0.56%
Ins Owner Change0.05%
Market Cap1.84B
Analysts80
Price Target52.02 (62.01%)
Short Float %8.5%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.9%
Min EPS beat(2)12.8%
Max EPS beat(2)31%
EPS beat(4)4
Avg EPS beat(4)117.47%
Min EPS beat(4)12.8%
Max EPS beat(4)409.61%
EPS beat(8)6
Avg EPS beat(8)58.83%
EPS beat(12)9
Avg EPS beat(12)123.33%
EPS beat(16)12
Avg EPS beat(16)89.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.91%
Revenue beat(8)1
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.54%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)0.22%
PT rev (3m)-1.71%
EPS NQ rev (1m)-10.2%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)2.39%
EPS NY rev (3m)6.9%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 7.83 | ||
| P/S | 2.48 | ||
| P/FCF | 8.32 | ||
| P/OCF | 8.27 | ||
| P/B | 2.56 | ||
| P/tB | 3 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)2.62
EY8.16%
EPS(NY)4.1
Fwd EY12.77%
FCF(TTM)3.86
FCFY12.03%
OCF(TTM)3.88
OCFY12.09%
SpS12.97
BVpS12.56
TBVpS10.69
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 21.22% | ||
| ROCE | 24.06% | ||
| ROIC | 18.05% | ||
| ROICexc | 42.52% | ||
| ROICexgc | 59.55% | ||
| OM | 28.46% | ||
| PM (TTM) | 20.54% | ||
| GM | 78.34% | ||
| FCFM | 29.77% |
ROA(3y)19.12%
ROA(5y)10.08%
ROE(3y)31.56%
ROE(5y)9.52%
ROIC(3y)18.26%
ROIC(5y)15.28%
ROICexc(3y)40.77%
ROICexc(5y)37.46%
ROICexgc(3y)77.32%
ROICexgc(5y)N/A
ROCE(3y)24.34%
ROCE(5y)20.37%
ROICexcg growth 3Y-76.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y-3.85%
ROICexc growth 5YN/A
OM growth 3Y-2.3%
OM growth 5YN/A
PM growth 3Y21.43%
PM growth 5YN/A
GM growth 3Y-1.56%
GM growth 5Y1.26%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.79 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 5.3% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 12.76 | ||
| Cash Conversion | 94.51% | ||
| Profit Quality | 144.92% | ||
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.64 | ||
| Altman-Z | 5.26 |
F-Score5
WACC9.86%
ROIC/WACC1.83
Cap/Depr(3y)59.28%
Cap/Depr(5y)142.27%
Cap/Sales(3y)3.13%
Cap/Sales(5y)8.45%
Profit Quality(3y)125.98%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.82%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%16.42%
EPS Next Y33.8%
EPS Next 2Y27.83%
EPS Next 3Y28.9%
EPS Next 5Y35.76%
Revenue 1Y (TTM)20.62%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.48%
Revenue Next Year17.85%
Revenue Next 2Y17.93%
Revenue Next 3Y18.6%
Revenue Next 5Y18.23%
EBIT growth 1Y4.13%
EBIT growth 3Y29.72%
EBIT growth 5YN/A
EBIT Next Year52.59%
EBIT Next 3Y31.55%
EBIT Next 5Y25.65%
FCF growth 1Y40.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.96%
OCF growth 3Y30.67%
OCF growth 5YN/A