HARMONY BIOSCIENCES HOLDINGS (HRMY) Stock Fundamental Analysis
NASDAQ:HRMY - Nasdaq - US4131971040 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to HRMY. HRMY was compared to 198 industry peers in the Pharmaceuticals industry. HRMY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
In the past year HRMY was profitable.
In the past year HRMY had a positive cash flow from operations.
Of the past 5 years HRMY 4 years were profitable.
Of the past 5 years HRMY 4 years had a positive operating cash flow.
1.2 Ratios
HRMY's Return On Assets of 14.47% is amongst the best of the industry. HRMY outperforms 95.96% of its industry peers.
With an excellent Return On Equity value of 21.20%, HRMY belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
HRMY has a Return On Invested Capital of 18.09%. This is amongst the best in the industry. HRMY outperforms 93.94% 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 42.34%.
| 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
HRMY has a Profit Margin of 20.50%. This is amongst the best in the industry. HRMY outperforms 92.93% of its industry peers.
In the last couple of years the Profit Margin of HRMY has grown nicely.
HRMY has a Operating Margin of 28.48%. This is amongst the best in the industry. HRMY outperforms 93.43% of its industry peers.
HRMY's Operating Margin has declined in the last couple of years.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.48% | ||
| PM (TTM) | 20.5% | ||
| GM | 78.34% |
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%
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.
HRMY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HRMY has less shares outstanding
HRMY has a better debt/assets ratio than last year.
2.2 Solvency
HRMY has an Altman-Z score of 5.51. 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 5.51, HRMY belongs to the top of the industry, outperforming 82.32% of the companies in the same industry.
The Debt to FCF ratio of HRMY is 0.79, which is an excellent value as it means it would take HRMY, only 0.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HRMY (0.79) is better than 95.45% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that HRMY is not too dependend on debt financing.
HRMY has a Debt to Equity ratio of 0.22. This is comparable 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 | 5.51 |
ROIC/WACC1.81
WACC9.97%
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.
The Current ratio of HRMY (3.67) is better than 63.64% of its industry peers.
HRMY has a Quick Ratio of 3.63. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a Quick ratio of 3.63. This is in the better half of the industry: HRMY outperforms 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.63 |
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!
The Revenue has been growing by 160.13% on average over the past years. This is a very strong growth!
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 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 Y30.68%
EPS Next 2Y31.49%
EPS Next 3Y31.91%
EPS Next 5Y36.9%
Revenue Next Year18.09%
Revenue Next 2Y17.75%
Revenue Next 3Y18.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.00 indicates a correct valuation of HRMY.
88.38% 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 (26.03), we can say HRMY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.85, which indicates a rather cheap valuation of HRMY.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 88.38% of the companies are valued more expensively.
HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 90.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 6.91 |
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.
A more expensive valuation may be justified as HRMY's earnings are expected to grow with 31.91% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y31.49%
EPS Next 3Y31.91%
5. Dividend
5.1 Amount
No dividends for HRMY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HRMY (5/22/2025, 10:23:10 AM)
34.07
-0.43 (-1.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners85.48%
Inst Owner Change-2.37%
Ins Owners0.52%
Ins Owner Change0.05%
Market Cap1.96B
Analysts80
Price Target51.91 (52.36%)
Short Float %7.46%
Short Ratio4.46
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)-1.93%
PT rev (3m)-6.2%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)4.41%
EPS NY rev (3m)-2.92%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 7.85 | ||
| P/S | 2.63 | ||
| P/FCF | 8.83 | ||
| P/OCF | 8.78 | ||
| P/B | 2.71 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.62
EY7.69%
EPS(NY)4.34
Fwd EY12.74%
FCF(TTM)3.86
FCFY11.32%
OCF(TTM)3.88
OCFY11.39%
SpS12.98
BVpS12.55
TBVpS10.69
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.47% | ||
| ROE | 21.2% | ||
| ROCE | 24.09% | ||
| ROIC | 18.09% | ||
| ROICexc | 42.65% | ||
| ROICexgc | 59.84% | ||
| OM | 28.48% | ||
| PM (TTM) | 20.5% | ||
| GM | 78.34% | ||
| FCFM | 29.72% |
ROA(3y)19.12%
ROA(5y)10.08%
ROE(3y)31.57%
ROE(5y)9.53%
ROIC(3y)18.27%
ROIC(5y)15.29%
ROICexc(3y)40.78%
ROICexc(5y)37.48%
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-3.89%
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.79 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 5.33% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 12.53 | ||
| Cash Conversion | 94.31% | ||
| Profit Quality | 144.97% | ||
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.63 | ||
| Altman-Z | 5.51 |
F-Score5
WACC9.97%
ROIC/WACC1.81
Cap/Depr(3y)59.29%
Cap/Depr(5y)142.27%
Cap/Sales(3y)3.13%
Cap/Sales(5y)8.45%
Profit Quality(3y)125.93%
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 Y30.68%
EPS Next 2Y31.49%
EPS Next 3Y31.91%
EPS Next 5Y36.9%
Revenue 1Y (TTM)20.62%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.48%
Revenue Next Year18.09%
Revenue Next 2Y17.75%
Revenue Next 3Y18.76%
Revenue Next 5Y21.1%
EBIT growth 1Y4.18%
EBIT growth 3Y29.68%
EBIT growth 5YN/A
EBIT Next Year52.36%
EBIT Next 3Y28.26%
EBIT Next 5Y26.17%
FCF growth 1Y40.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.75%
OCF growth 3Y30.64%
OCF growth 5YN/A