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 193 industry peers in the Pharmaceuticals industry. HRMY gets an excellent profitability rating and is at the same time showing great financial health properties. HRMY has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, HRMY could be worth investigating further 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.
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 16.33%, HRMY belongs to the top of the industry, outperforming 96.89% of the companies in the same industry.
With an excellent Return On Equity value of 23.40%, HRMY belongs to the best of the industry, outperforming 94.30% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.95%, HRMY belongs to the top of the industry, outperforming 94.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRMY is above the industry average of 14.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.33% | ||
| ROE | 23.4% | ||
| ROIC | 17.95% |
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
The Profit Margin of HRMY (23.42%) is better than 94.82% of its industry peers.
HRMY's Profit Margin has improved in the last couple of years.
HRMY has a better Operating Margin (28.72%) than 93.78% of its industry peers.
HRMY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 78.34%, HRMY belongs to the top of the industry, outperforming 86.53% of the companies in the same industry.
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 | 28.72% | ||
| PM (TTM) | 23.42% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRMY is creating value.
Compared to 1 year ago, HRMY has more shares outstanding
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 5.67. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
HRMY has a better Altman-Z score (5.67) than 80.31% of its industry peers.
HRMY has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
HRMY has a better Debt to FCF ratio (0.67) than 96.37% of its industry peers.
HRMY has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
HRMY has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 5.67 |
ROIC/WACC1.77
WACC10.14%
2.3 Liquidity
A Current Ratio of 3.84 indicates that HRMY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.84, HRMY is in the better half of the industry, outperforming 62.18% of the companies in the same industry.
HRMY has a Quick Ratio of 3.80. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a better Quick ratio (3.80) than 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 3.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.76% 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
HRMY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.74%.
Measured over the past years, HRMY shows a very strong growth in Revenue. The Revenue has been growing by 160.13% on average per year.
EPS 1Y (TTM)49.76%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%240%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%16.01%
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
Based on estimates for the next years, HRMY will show a quite strong growth in Revenue. The Revenue will grow by 18.23% on average per year.
EPS Next Y34.21%
EPS Next 2Y31.45%
EPS Next 3Y28.12%
EPS Next 5Y35.76%
Revenue Next Year18.19%
Revenue Next 2Y17.75%
Revenue Next 3Y16.91%
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
Based on the Price/Earnings ratio of 11.83, the valuation of HRMY can be described as reasonable.
HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 89.64% of the companies in the same industry.
HRMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.11.
A Price/Forward Earnings ratio of 8.45 indicates a reasonable valuation of HRMY.
HRMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 87.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HRMY to the average of the S&P500 Index (35.78), we can say HRMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 93.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 93.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 6.61 |
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 28.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y31.45%
EPS Next 3Y28.12%
5. Dividend
5.1 Amount
No dividends for HRMY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.67
+1.2 (+3.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change1.39%
Ins Owners0.56%
Ins Owner Change0%
Market Cap2.11B
Analysts78.82
Price Target51.28 (39.84%)
Short Float %10.12%
Short Ratio7.08
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)1
Avg EPS beat(2)9.92%
Min EPS beat(2)-11.17%
Max EPS beat(2)31%
EPS beat(4)3
Avg EPS beat(4)12.28%
Min EPS beat(4)-11.17%
Max EPS beat(4)31%
EPS beat(8)6
Avg EPS beat(8)59.09%
EPS beat(12)9
Avg EPS beat(12)123.49%
EPS beat(16)11
Avg EPS beat(16)86.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.91%
Revenue beat(8)1
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.17%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-1.43%
PT rev (3m)-1.21%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-6.19%
EPS NY rev (1m)0%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 8.45 | ||
| P/S | 2.73 | ||
| P/FCF | 8.15 | ||
| P/OCF | 8.13 | ||
| P/B | 2.72 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)3.1
EY8.45%
EPS(NY)4.34
Fwd EY11.83%
FCF(TTM)4.5
FCFY12.28%
OCF(TTM)4.51
OCFY12.31%
SpS13.45
BVpS13.46
TBVpS11.7
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.33% | ||
| ROE | 23.4% | ||
| ROCE | 23.91% | ||
| ROIC | 17.95% | ||
| ROICexc | 45.94% | ||
| ROICexgc | 63.76% | ||
| OM | 28.72% | ||
| PM (TTM) | 23.42% | ||
| GM | 78.34% | ||
| FCFM | 33.46% |
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-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 2.7% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 13.83 | ||
| Cash Conversion | 105.45% | ||
| Profit Quality | 142.89% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 3.8 | ||
| Altman-Z | 5.67 |
F-Score6
WACC10.14%
ROIC/WACC1.77
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)49.76%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%240%
EPS Next Y34.21%
EPS Next 2Y31.45%
EPS Next 3Y28.12%
EPS Next 5Y35.76%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%16.01%
Revenue Next Year18.19%
Revenue Next 2Y17.75%
Revenue Next 3Y16.91%
Revenue Next 5Y18.23%
EBIT growth 1Y13.95%
EBIT growth 3Y29.68%
EBIT growth 5YN/A
EBIT Next Year48.18%
EBIT Next 3Y29.62%
EBIT Next 5Y25.65%
FCF growth 1Y60.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.46%
OCF growth 3Y30.64%
OCF growth 5YN/A