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 198 industry peers in the Pharmaceuticals industry. HROW has a medium profitability rating, but doesn't score so well on its financial health evaluation. HROW is valued quite expensively, but it does show have an excellent growth rating.
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
HROW's Return On Assets of -5.96% is fine compared to the rest of the industry. HROW outperforms 73.23% of its industry peers.
HROW has a Return On Equity (-38.43%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 2.13%, HROW is doing good in the industry, outperforming 79.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HROW is significantly below the industry average of 42.34%.
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
Looking at the Operating Margin, with a value of 2.24%, HROW is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of HROW has grown nicely.
With an excellent Gross Margin value of 74.53%, HROW belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
HROW's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HROW 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.
The debt/assets ratio for HROW has been reduced compared to a year ago.
2.2 Solvency
HROW has an Altman-Z score of 1.76. This is a bad value and indicates that HROW is not financially healthy and even has some risk of bankruptcy.
HROW has a better Altman-Z score (1.76) than 67.68% 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.
HROW has a Debt to Equity ratio of 1.99. This is in the lower half of the industry: HROW underperforms 74.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACC0.21
WACC10.32%
2.3 Liquidity
A Current Ratio of 0.91 indicates that HROW may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, HROW is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that HROW may have some problems paying its short term obligations.
HROW's Quick ratio of 0.85 is on the low side compared to the rest of the industry. HROW is outperformed by 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
HROW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.78%, which is quite impressive.
HROW shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.49%.
Measured over the past years, HROW shows a very strong growth in Revenue. The Revenue has been growing by 31.29% on average per year.
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
The Earnings Per Share is expected to grow by 135.76% on average over the next years. This is a very strong growth
HROW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 51.08% yearly.
EPS Next Y213.59%
EPS Next 2Y131.91%
EPS Next 3Y135.76%
EPS Next 5YN/A
Revenue Next Year45.22%
Revenue Next 2Y41.06%
Revenue Next 3Y51.08%
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
The Price/Earnings Ratio is negative for HROW. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 17.43, which indicates a rather expensive current valuation of HROW.
Based on the Price/Forward Earnings ratio, HROW is valued a bit cheaper than 78.28% of the companies in the same industry.
HROW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
77.27% of the companies in the same industry are more expensive than HROW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 52.22 |
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.
HROW's earnings are expected to grow with 135.76% in the coming years. This may justify a more expensive valuation.
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 |
25.9
+0.16 (+0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners59.06%
Inst Owner Change0.46%
Ins Owners13.21%
Ins Owner Change16.87%
Market Cap950.53M
Analysts83.64
Price Target58.59 (126.22%)
Short Float %13.27%
Short Ratio7.05
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)0%
PT rev (3m)-4.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.61%
EPS NY rev (1m)0%
EPS NY rev (3m)26.29%
Revenue NQ rev (1m)-3.03%
Revenue NQ rev (3m)-4.45%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.43 | ||
| P/S | 4.46 | ||
| P/FCF | N/A | ||
| P/OCF | 453.81 | ||
| P/B | 16.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 52.22 |
EPS(TTM)-0.56
EYN/A
EPS(NY)1.49
Fwd EY5.74%
FCF(TTM)-1
FCFYN/A
OCF(TTM)0.06
OCFY0.22%
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 | 1.76 |
F-Score7
WACC10.32%
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 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 Year45.22%
Revenue Next 2Y41.06%
Revenue Next 3Y51.08%
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