HARROW INC (HROW) Stock Fundamental Analysis
NASDAQ:HROW - Nasdaq - US4158581094 - Common Stock - Currency: USD
HROW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 194 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of HROW while its profitability can be described as average. HROW is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
HROW had negative earnings in the past year.
In the past year HROW had a positive cash flow from operations.
In the past 5 years HROW always reported negative net income.
In multiple years HROW reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.96%, HROW is in the better half of the industry, outperforming 72.16% of the companies in the same industry.
HROW's Return On Equity of -38.43% is in line compared to the rest of the industry. HROW outperforms 57.22% of its industry peers.
With a decent Return On Invested Capital value of 2.13%, HROW is doing good in the industry, outperforming 79.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HROW is significantly below the industry average of 14.91%.
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 78.35% of its industry peers.
HROW's Operating Margin has improved in the last couple of years.
HROW has a Gross Margin of 74.53%. This is amongst the best in the industry. HROW outperforms 81.44% 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
HROW has an Altman-Z score of 2.15. This is not the best score and indicates that HROW is in the grey zone with still only limited risk for bankruptcy at the moment.
HROW has a better Altman-Z score (2.15) than 68.04% 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.
Looking at the Debt to Equity ratio, with a value of 1.99, HROW is doing worse than 76.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.21
WACC10.14%
2.3 Liquidity
A Current Ratio of 0.91 indicates that HROW may have some problems paying its short term obligations.
The Current ratio of HROW (0.91) is worse than 85.05% of its industry peers.
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 80.93% 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.
Looking at the last year, HROW shows a very strong growth in Revenue. The Revenue has grown by 53.49%.
HROW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.29% yearly.
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
HROW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 114.53% yearly.
Based on estimates for the next years, HROW will show a very strong growth in Revenue. The Revenue will grow by 29.43% on average per year.
EPS Next Y151.04%
EPS Next 2Y131.72%
EPS Next 3Y114.54%
EPS Next 5YN/A
Revenue Next Year47.03%
Revenue Next 2Y43.46%
Revenue Next 3Y42.09%
Revenue Next 5Y29.43%
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 stable.
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 21.07, HROW is valued on the expensive side.
73.20% of the companies in the same industry are more expensive than HROW, based on the Price/Forward Earnings ratio.
HROW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.07 |
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 76.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 61.81 |
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.
HROW's earnings are expected to grow with 114.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y131.72%
EPS Next 3Y114.54%
5. Dividend
5.1 Amount
No dividends for HROW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.23
-0.53 (-1.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners57.24%
Inst Owner Change-0.04%
Ins Owners15.07%
Ins Owner Change21.4%
Market Cap1.15B
Analysts86.15
Price Target59.92 (91.87%)
Short Float %13.31%
Short Ratio9.63
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)5.15%
PT rev (3m)2.27%
EPS NQ rev (1m)-34.92%
EPS NQ rev (3m)-92.95%
EPS NY rev (1m)-40.53%
EPS NY rev (3m)-55.07%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.07 | ||
| P/S | 5.38 | ||
| P/FCF | N/A | ||
| P/OCF | 547.35 | ||
| P/B | 20.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 61.81 |
EPS(TTM)-0.56
EYN/A
EPS(NY)1.48
Fwd EY4.75%
FCF(TTM)-1
FCFYN/A
OCF(TTM)0.06
OCFY0.18%
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
WACC10.14%
ROIC/WACC0.21
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 Y151.04%
EPS Next 2Y131.72%
EPS Next 3Y114.54%
EPS Next 5YN/A
Revenue 1Y (TTM)53.49%
Revenue growth 3Y40.17%
Revenue growth 5Y31.29%
Sales Q2Q%38.29%
Revenue Next Year47.03%
Revenue Next 2Y43.46%
Revenue Next 3Y42.09%
Revenue Next 5Y29.43%
EBIT growth 1Y165.06%
EBIT growth 3Y69.3%
EBIT growth 5YN/A
EBIT Next Year1568.1%
EBIT Next 3Y280.43%
EBIT Next 5Y132.11%
FCF growth 1Y73.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y128.03%
OCF growth 3YN/A
OCF growth 5YN/A