HARROW INC (HROW) Stock Fundamental Analysis
USA - NASDAQ:HROW - US4158581094 - Common Stock
40.01 USD
+2.09 (+5.51%)
40.48 USD
+0.47 (+1.17%)
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. While HROW is still in line with the averages on profitability rating, there are concerns on its financial health. HROW is valued quite expensive, but it does show an excellent growth.
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.
HROW had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: HROW reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of HROW (-2.96%) is better than 74.36% of its industry peers.
HROW's Return On Equity of -20.60% is fine compared to the rest of the industry. HROW outperforms 67.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.04%, HROW belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
HROW had an Average Return On Invested Capital over the past 3 years of 1.25%. This is significantly below the industry average of 15.30%.
The last Return On Invested Capital (12.04%) for HROW is above the 3 year average (1.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.96% | ||
| ROE | -20.6% | ||
| ROIC | 12.04% |
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 6.44%, HROW is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of HROW has grown nicely.
Looking at the Gross Margin, with a value of 74.56%, HROW belongs to the top of the industry, outperforming 80.51% of the companies in the same industry.
In the last couple of years the Gross Margin of HROW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.44% | ||
| PM (TTM) | N/A | ||
| GM | 74.56% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HROW has been increased compared to 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 2.66. 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.
Looking at the Altman-Z score, with a value of 2.66, HROW is in the better half of the industry, outperforming 69.74% of the companies in the same industry.
HROW has a Debt/Equity ratio of 0.78. This is a neutral value indicating HROW is somewhat dependend on debt financing.
HROW has a Debt to Equity ratio of 0.78. This is in the lower half of the industry: HROW underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC1.34
WACC8.95%
2.3 Liquidity
HROW has a Current Ratio of 0.62. This is a bad value and indicates that HROW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.62, HROW is doing worse than 91.28% of the companies in the same industry.
HROW has a Quick Ratio of 0.62. This is a bad value and indicates that HROW is not financially healthy enough and could expect problems in meeting its short term obligations.
HROW's Quick ratio of 0.58 is on the low side compared to the rest of the industry. HROW is outperformed by 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.40% over the past year.
The Revenue has grown by 47.69% in the past year. This is a very strong growth!
HROW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.29% yearly.
EPS 1Y (TTM)73.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%172.22%
Revenue 1Y (TTM)47.69%
Revenue growth 3Y40.17%
Revenue growth 5Y31.29%
Sales Q2Q%30.25%
3.2 Future
HROW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 72.94% yearly.
The Revenue is expected to grow by 31.80% on average over the next years. This is a very strong growth
EPS Next Y188.38%
EPS Next 2Y149.61%
EPS Next 3Y108.44%
EPS Next 5Y72.94%
Revenue Next Year44.77%
Revenue Next 2Y43.03%
Revenue Next 3Y41.77%
Revenue Next 5Y31.8%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HROW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 21.49, which indicates a rather expensive current valuation of HROW.
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.
HROW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.49 |
4.2 Price Multiples
77.95% 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 | 48.2 |
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 108.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y149.61%
EPS Next 3Y108.44%
5. Dividend
5.1 Amount
HROW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.01
+2.09 (+5.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners57.65%
Inst Owner Change-0.01%
Ins Owners15.72%
Ins Owner Change5.45%
Market Cap1.48B
Analysts85.71
Price Target63.21 (57.99%)
Short Float %16.77%
Short Ratio8.4
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)343.82%
Min EPS beat(2)-970.3%
Max EPS beat(2)1657.94%
EPS beat(4)2
Avg EPS beat(4)194.78%
Min EPS beat(4)-970.3%
Max EPS beat(4)1657.94%
EPS beat(8)3
Avg EPS beat(8)-25.33%
EPS beat(12)4
Avg EPS beat(12)-827.36%
EPS beat(16)5
Avg EPS beat(16)-916.47%
Revenue beat(2)0
Avg Revenue beat(2)-11.52%
Min Revenue beat(2)-17.73%
Max Revenue beat(2)-5.31%
Revenue beat(4)1
Avg Revenue beat(4)-6.39%
Min Revenue beat(4)-17.73%
Max Revenue beat(4)6.04%
Revenue beat(8)2
Avg Revenue beat(8)-4.47%
Revenue beat(12)4
Avg Revenue beat(12)-3.21%
Revenue beat(16)8
Avg Revenue beat(16)-1.01%
PT rev (1m)3.58%
PT rev (3m)10.93%
EPS NQ rev (1m)-4.28%
EPS NQ rev (3m)24.4%
EPS NY rev (1m)7.39%
EPS NY rev (3m)73.16%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.49 | ||
| P/S | 6.5 | ||
| P/FCF | N/A | ||
| P/OCF | 366.7 | ||
| P/B | 29.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.2 |
EPS(TTM)-0.25
EYN/A
EPS(NY)1.86
Fwd EY4.65%
FCF(TTM)-0.93
FCFYN/A
OCF(TTM)0.11
OCFY0.27%
SpS6.15
BVpS1.34
TBVpS-3.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.96% | ||
| ROE | -20.6% | ||
| ROCE | 15.24% | ||
| ROIC | 12.04% | ||
| ROICexc | 26.8% | ||
| ROICexgc | N/A | ||
| OM | 6.44% | ||
| PM (TTM) | N/A | ||
| GM | 74.56% | ||
| 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 214.23% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 0.65 | ||
| Cash Conversion | 12.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.66 |
F-Score7
WACC8.95%
ROIC/WACC1.34
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)73.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%172.22%
EPS Next Y188.38%
EPS Next 2Y149.61%
EPS Next 3Y108.44%
EPS Next 5Y72.94%
Revenue 1Y (TTM)47.69%
Revenue growth 3Y40.17%
Revenue growth 5Y31.29%
Sales Q2Q%30.25%
Revenue Next Year44.77%
Revenue Next 2Y43.03%
Revenue Next 3Y41.77%
Revenue Next 5Y31.8%
EBIT growth 1Y279.69%
EBIT growth 3Y69.3%
EBIT growth 5YN/A
EBIT Next Year1336.35%
EBIT Next 3Y239.76%
EBIT Next 5Y132.11%
FCF growth 1Y75.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y151.96%
OCF growth 3YN/A
OCF growth 5YN/A