HARROW INC (HROW) Stock Fundamental Analysis
NASDAQ:HROW - Nasdaq - US4158581094 - Common Stock - Currency: USD
Taking everything into account, HROW scores 4 out of 10 in our fundamental rating. HROW was compared to 195 industry peers in the Pharmaceuticals industry. HROW has a medium profitability rating, but doesn't score so well on its financial health evaluation. HROW shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
HROW had negative earnings in the past year.
HROW had a positive operating cash flow in the past year.
HROW had negative earnings in each of the past 5 years.
In multiple years HROW reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of HROW (-5.96%) is better than 72.82% of its industry peers.
HROW has a Return On Equity (-38.43%) which is comparable to the rest of the industry.
HROW has a Return On Invested Capital of 2.13%. This is in the better half of the industry: HROW outperforms 78.97% of its industry peers.
HROW had an Average Return On Invested Capital over the past 3 years of 1.25%. This is significantly below the industry average of 14.70%.
The last Return On Invested Capital (2.13%) for HROW is above the 3 year average (1.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.96% | ||
| ROE | -38.43% | ||
| ROIC | 2.13% |
ROA(3y)-7.09%
ROA(5y)-9.18%
ROE(3y)-36.88%
ROE(5y)-57.31%
ROIC(3y)1.25%
ROIC(5y)1.34%
1.3 Margins
The Operating Margin of HROW (2.24%) is better than 77.44% of its industry peers.
In the last couple of years the Operating Margin of HROW has grown nicely.
The Gross Margin of HROW (74.53%) is better than 81.54% of its industry peers.
In the last couple of years the Gross Margin of HROW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.24% | ||
| PM (TTM) | N/A | ||
| GM | 74.53% |
OM growth 3Y20.78%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.21%
GM growth 5Y2.29%
2. Health
2.1 Basic Checks
HROW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HROW has more shares outstanding than it did 1 year ago.
HROW has more shares outstanding than it did 5 years ago.
HROW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.15 indicates that HROW is not a great score, but indicates only limited risk for bankruptcy at the moment.
HROW has a better Altman-Z score (2.15) than 69.23% of its industry peers.
A Debt/Equity ratio of 1.99 is on the high side and indicates that HROW has dependencies on debt financing.
With a Debt to Equity ratio value of 1.99, HROW is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.2
WACC10.43%
2.3 Liquidity
HROW has a Current Ratio of 0.91. This is a bad value and indicates that HROW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.91, HROW is not doing good in the industry: 85.13% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that HROW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, HROW is doing worse than 81.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.78% over the past year.
The Revenue has grown by 53.49% in the past year. This is a very strong growth!
The Revenue has been growing by 31.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)37.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-31.58%
Revenue 1Y (TTM)53.49%
Revenue growth 3Y40.17%
Revenue growth 5Y31.29%
Sales Q2Q%38.29%
3.2 Future
Based on estimates for the next years, HROW will show a very strong growth in Earnings Per Share. The EPS will grow by 135.76% on average per year.
HROW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 47.48% yearly.
EPS Next Y213.59%
EPS Next 2Y131.91%
EPS Next 3Y135.76%
EPS Next 5YN/A
Revenue Next Year45.04%
Revenue Next 2Y42.03%
Revenue Next 3Y47.48%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HROW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 20.39, HROW is valued on the expensive side.
HROW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HROW is cheaper than 74.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, HROW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HROW indicates a somewhat cheap valuation: HROW is cheaper than 76.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 61.69 |
4.3 Compensation for Growth
HROW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HROW's earnings are expected to grow with 135.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y131.91%
EPS Next 3Y135.76%
5. Dividend
5.1 Amount
HROW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.31
-0.85 (-2.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners57.24%
Inst Owner Change0.5%
Ins Owners15.07%
Ins Owner Change16.87%
Market Cap1.11B
Analysts83.64
Price Target56.55 (86.57%)
Short Float %13.36%
Short Ratio7.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-375.73%
Min EPS beat(2)-970.3%
Max EPS beat(2)218.83%
EPS beat(4)2
Avg EPS beat(4)-216.22%
Min EPS beat(4)-970.3%
Max EPS beat(4)218.83%
EPS beat(8)2
Avg EPS beat(8)-262.97%
EPS beat(12)3
Avg EPS beat(12)-1238.92%
EPS beat(16)4
Avg EPS beat(16)-1032.22%
Revenue beat(2)1
Avg Revenue beat(2)-5.85%
Min Revenue beat(2)-17.73%
Max Revenue beat(2)6.04%
Revenue beat(4)2
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-17.73%
Max Revenue beat(4)12.87%
Revenue beat(8)3
Avg Revenue beat(8)-3.1%
Revenue beat(12)5
Avg Revenue beat(12)-2.47%
Revenue beat(16)9
Avg Revenue beat(16)0.14%
PT rev (1m)-3.48%
PT rev (3m)-4.22%
EPS NQ rev (1m)-47.86%
EPS NQ rev (3m)-35.03%
EPS NY rev (1m)0%
EPS NY rev (3m)26.29%
Revenue NQ rev (1m)-4.73%
Revenue NQ rev (3m)-6.12%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.39 | ||
| P/S | 5.23 | ||
| P/FCF | N/A | ||
| P/OCF | 531.22 | ||
| P/B | 19.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 61.69 |
EPS(TTM)-0.56
EYN/A
EPS(NY)1.49
Fwd EY4.9%
FCF(TTM)-1
FCFYN/A
OCF(TTM)0.06
OCFY0.19%
SpS5.8
BVpS1.54
TBVpS-3.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.96% | ||
| ROE | -38.43% | ||
| ROCE | 2.69% | ||
| ROIC | 2.13% | ||
| ROICexc | 3.41% | ||
| ROICexgc | N/A | ||
| OM | 2.24% | ||
| PM (TTM) | N/A | ||
| GM | 74.53% | ||
| FCFM | N/A |
ROA(3y)-7.09%
ROA(5y)-9.18%
ROE(3y)-36.88%
ROE(5y)-57.31%
ROIC(3y)1.25%
ROIC(5y)1.34%
ROICexc(3y)2.44%
ROICexc(5y)3.09%
ROICexgc(3y)9.66%
ROICexgc(5y)8.29%
ROCE(3y)1.58%
ROCE(5y)1.69%
ROICexcg growth 3Y16.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.77%
ROICexc growth 5YN/A
OM growth 3Y20.78%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.21%
GM growth 5Y2.29%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 237.77% | ||
| Cap/Sales | 18.17% | ||
| Interest Coverage | 0.22 | ||
| Cash Conversion | 9.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.15 |
F-Score7
WACC10.43%
ROIC/WACC0.2
Cap/Depr(3y)528.86%
Cap/Depr(5y)344.75%
Cap/Sales(3y)46.48%
Cap/Sales(5y)28.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-31.58%
EPS Next Y213.59%
EPS Next 2Y131.91%
EPS Next 3Y135.76%
EPS Next 5YN/A
Revenue 1Y (TTM)53.49%
Revenue growth 3Y40.17%
Revenue growth 5Y31.29%
Sales Q2Q%38.29%
Revenue Next Year45.04%
Revenue Next 2Y42.03%
Revenue Next 3Y47.48%
Revenue Next 5YN/A
EBIT growth 1Y165.06%
EBIT growth 3Y69.3%
EBIT growth 5YN/A
EBIT Next Year1568.1%
EBIT Next 3Y280.43%
EBIT Next 5YN/A
FCF growth 1Y73.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y128.03%
OCF growth 3YN/A
OCF growth 5YN/A