HARMONY BIOSCIENCES HOLDINGS (HRMY)
US4131971040 - Common Stock
We assign a fundamental rating of 7 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make HRMY suitable for value 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.
In multiple years HRMY reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: HRMY reported negative operating cash flow in multiple years.
1.2 Ratios
HRMY has a Return On Assets of 15.89%. This is amongst the best in the industry. HRMY outperforms 95.90% of its industry peers.
HRMY has a better Return On Equity (27.60%) than 94.87% of its industry peers.
HRMY has a Return On Invested Capital of 22.03%. This is amongst the best in the industry. HRMY outperforms 96.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HRMY is in line with the industry average of 16.40%.
The last Return On Invested Capital (22.03%) for HRMY is above the 3 year average (18.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 27.6% | ||
| ROIC | 22.03% |
ROA(3y)16.93%
ROA(5y)-27.92%
ROE(3y)30.4%
ROE(5y)N/A
ROIC(3y)18.06%
ROIC(5y)N/A
1.3 Margins
HRMY has a Profit Margin of 22.15%. This is amongst the best in the industry. HRMY outperforms 94.36% of its industry peers.
HRMY's Operating Margin of 32.99% is amongst the best of the industry. HRMY outperforms 96.41% of its industry peers.
In the last couple of years the Operating Margin of HRMY has grown nicely.
HRMY has a better Gross Margin (79.17%) than 82.56% of its industry peers.
HRMY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.99% | ||
| PM (TTM) | 22.15% | ||
| GM | 79.17% |
OM growth 3Y46.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.43%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRMY is creating value.
HRMY has less 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 4.57. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.57, HRMY belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
HRMY has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
HRMY's Debt to FCF ratio of 0.88 is amongst the best of the industry. HRMY outperforms 95.38% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that HRMY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, HRMY is not doing good in the industry: 61.03% of the companies in the same industry are doing better.
Although HRMY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 4.57 |
ROIC/WACC2.41
WACC9.13%
2.3 Liquidity
A Current Ratio of 2.75 indicates that HRMY has no problem at all paying its short term obligations.
The Current ratio of HRMY (2.75) is comparable to the rest of the industry.
A Quick Ratio of 2.72 indicates that HRMY has no problem at all paying its short term obligations.
HRMY's Quick ratio of 2.72 is in line compared to the rest of the industry. HRMY outperforms 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The earnings per share for HRMY have decreased strongly by -22.68% in the last year.
HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.94%.
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.89% yearly.
EPS 1Y (TTM)-22.68%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-43.04%
Revenue 1Y (TTM)32.94%
Revenue growth 3Y53.89%
Revenue growth 5YN/A
Revenue growth Q2Q31.26%
3.2 Future
Based on estimates for the next years, HRMY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.65% on average per year.
Based on estimates for the next years, HRMY will show a quite strong growth in Revenue. The Revenue will grow by 16.66% on average per year.
EPS Next Y22.59%
EPS Next 2Y30.12%
EPS Next 3Y28.99%
EPS Next 5Y24.65%
Revenue Next Year22.16%
Revenue Next 2Y20.11%
Revenue Next 3Y19.02%
Revenue Next 5Y16.66%
3.3 Evolution
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
Based on the Price/Earnings ratio of 11.95, the valuation of HRMY can be described as reasonable.
Based on the Price/Earnings ratio, HRMY is valued cheaper than 89.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, HRMY is valued rather cheaply.
A Price/Forward Earnings ratio of 9.75 indicates a reasonable valuation of HRMY.
92.82% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, HRMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
HRMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRMY is cheaper than 94.36% of the companies in the same industry.
HRMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRMY is cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.5 | ||
| EV/EBITDA | 6.74 |
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.
HRMY has a very decent profitability rating, which may justify a higher PE ratio.
HRMY's earnings are expected to grow with 28.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y30.12%
EPS Next 3Y28.99%
5. Dividend
5.1 Amount
HRMY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HARMONY BIOSCIENCES HOLDINGS
NASDAQ:HRMY (4/25/2024, 7:00:01 PM)
After market: 28.93 0 (0%)28.93
-0.3 (-1.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap1.64B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 9.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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SpS
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PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 27.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.99% | ||
| PM (TTM) | 22.15% | ||
| GM | 79.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-22.68%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y22.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)32.94%
Revenue growth 3Y53.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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