HARMONY BIOSCIENCES HOLDINGS (HRMY) Stock Fundamental Analysis
NASDAQ:HRMY - Nasdaq - US4131971040 - Common Stock - Currency: USD
HRMY gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. HRMY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: HRMY is growing strongly while it also seems undervalued. These ratings would make HRMY suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
HRMY had positive earnings in the past year.
HRMY had a positive operating cash flow in the past year.
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 has a better Return On Assets (14.56%) than 95.96% of its industry peers.
HRMY has a Return On Equity of 22.07%. This is amongst the best in the industry. HRMY outperforms 93.94% of its industry peers.
With an excellent Return On Invested Capital value of 18.94%, HRMY belongs to the best of the industry, outperforming 93.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HRMY is significantly below the industry average of 41.61%.
The 3 year average ROIC (18.27%) for HRMY is below the current ROIC(18.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.56% | ||
| ROE | 22.07% | ||
| ROIC | 18.94% |
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's Profit Margin of 20.36% is amongst the best of the industry. HRMY outperforms 92.93% of its industry peers.
In the last couple of years the Profit Margin of HRMY has grown nicely.
The Operating Margin of HRMY (29.09%) is better than 93.43% 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 78.06%, HRMY belongs to the top of the industry, outperforming 84.34% 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 | 29.09% | ||
| PM (TTM) | 20.36% | ||
| GM | 78.06% |
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.
The number of shares outstanding for HRMY has been reduced compared to 5 years ago.
Compared to 1 year ago, HRMY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.87 indicates that HRMY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.87, HRMY belongs to the top of the industry, outperforming 81.31% of the companies in the same industry.
HRMY has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.82, HRMY belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
HRMY has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.96
WACC9.65%
2.3 Liquidity
A Current Ratio of 3.31 indicates that HRMY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.31, HRMY is in line with its industry, outperforming 56.57% of the companies in the same industry.
HRMY has a Quick Ratio of 3.27. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY's Quick ratio of 3.27 is fine compared to the rest of the industry. HRMY outperforms 60.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
HRMY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.72%.
Measured over the past years, HRMY shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.61% on average per year.
Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 22.80%.
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)3.72%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%88.89%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.51%
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 36.90% on average per year.
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.10% yearly.
EPS Next Y25.16%
EPS Next 2Y30.64%
EPS Next 3Y31.63%
EPS Next 5Y36.9%
Revenue Next Year17.81%
Revenue Next 2Y18.1%
Revenue Next 3Y18.92%
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
Based on the Price/Earnings ratio of 11.90, 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 88.89% of the companies in the same industry.
HRMY is valuated cheaply when we compare the Price/Earnings ratio to 27.85, which is the current average of the S&P500 Index.
HRMY is valuated reasonably with a Price/Forward Earnings ratio of 9.50.
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 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 92.42% 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 | 7.84 | ||
| EV/EBITDA | 5.99 |
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 an outstanding 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.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y30.64%
EPS Next 3Y31.63%
5. Dividend
5.1 Amount
HRMY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.86
+0.39 (+1.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners85.48%
Inst Owner Change0.46%
Ins Owners0.52%
Ins Owner Change-53.01%
Market Cap1.71B
Analysts80
Price Target52.81 (76.86%)
Short Float %7.46%
Short Ratio4.36
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)14.64%
Min EPS beat(2)12.8%
Max EPS beat(2)16.47%
EPS beat(4)4
Avg EPS beat(4)111.9%
Min EPS beat(4)8.7%
Max EPS beat(4)409.61%
EPS beat(8)6
Avg EPS beat(8)59.62%
EPS beat(12)9
Avg EPS beat(12)126.57%
EPS beat(16)12
Avg EPS beat(16)181%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.2%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)6
Avg Revenue beat(16)-0.29%
PT rev (1m)0%
PT rev (3m)-3.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 9.5 | ||
| P/S | 2.4 | ||
| P/FCF | 7.84 | ||
| P/OCF | 7.8 | ||
| P/B | 2.6 | ||
| P/tB | 3.14 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.51
EY8.41%
EPS(NY)3.14
Fwd EY10.52%
FCF(TTM)3.81
FCFY12.76%
OCF(TTM)3.83
OCFY12.83%
SpS12.45
BVpS11.49
TBVpS9.51
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.56% | ||
| ROE | 22.07% | ||
| ROCE | 25.23% | ||
| ROIC | 18.94% | ||
| ROICexc | 43.74% | ||
| ROICexgc | 64.07% | ||
| OM | 29.09% | ||
| PM (TTM) | 20.36% | ||
| GM | 78.06% | ||
| FCFM | 30.59% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 4.78% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 12.01 | ||
| Cash Conversion | 94.74% | ||
| Profit Quality | 150.29% | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 4.87 |
F-Score5
WACC9.65%
ROIC/WACC1.96
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)3.72%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%88.89%
EPS Next Y25.16%
EPS Next 2Y30.64%
EPS Next 3Y31.63%
EPS Next 5Y36.9%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.51%
Revenue Next Year17.81%
Revenue Next 2Y18.1%
Revenue Next 3Y18.92%
Revenue Next 5Y21.1%
EBIT growth 1Y8.29%
EBIT growth 3Y29.68%
EBIT growth 5YN/A
EBIT Next Year52.36%
EBIT Next 3Y28.26%
EBIT Next 5Y26.17%
FCF growth 1Y-0.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.2%
OCF growth 3Y30.64%
OCF growth 5YN/A