Our stock screener has singled out BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) as an attractive growth opportunity. NASDAQ:BMRN is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.
ChartMill's Evaluation of Growth
ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:BMRN has earned a 7 for growth:
- BMRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 334.48%, which is quite impressive.
- The Revenue has grown by 15.42% in the past year. This is quite good.
- Measured over the past years, BMRN shows a quite strong growth in Revenue. The Revenue has been growing by 10.16% on average per year.
- The Earnings Per Share is expected to grow by 41.32% on average over the next years. This is a very strong growth
- BMRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.54% yearly.
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
Understanding NASDAQ:BMRN's Valuation
ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:BMRN has earned a 6 for valuation:
- BMRN's Price/Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.58% of the companies in the same industry.
- BMRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.58% of the companies in the same industry.
- BMRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.24% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BMRN is valued cheaply inside the industry as 93.90% of the companies are valued more expensively.
- BMRN has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BMRN's earnings are expected to grow with 59.29% in the coming years.
Evaluating Health: NASDAQ:BMRN
ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:BMRN was assigned a score of 5 for health:
- An Altman-Z score of 6.07 indicates that BMRN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 6.07, BMRN is doing good in the industry, outperforming 78.64% of the companies in the same industry.
- BMRN has a better Debt to FCF ratio (21.05) than 94.07% of its industry peers.
- BMRN has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- BMRN has a Current Ratio of 2.51. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.
Understanding NASDAQ:BMRN's Profitability
Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:BMRN has achieved a 7:
- Looking at the Return On Assets, with a value of 2.45%, BMRN belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
- BMRN has a better Return On Equity (3.39%) than 94.75% of its industry peers.
- With an excellent Return On Invested Capital value of 2.21%, BMRN belongs to the best of the industry, outperforming 94.75% of the companies in the same industry.
- Looking at the Profit Margin, with a value of 6.93%, BMRN belongs to the top of the industry, outperforming 95.76% of the companies in the same industry.
- The Operating Margin of BMRN (6.54%) is better than 94.92% of its industry peers.
- BMRN has a better Gross Margin (78.72%) than 86.10% of its industry peers.
More Affordable Growth stocks can be found in our Affordable Growth screener.
Check the latest full fundamental report of BMRN for a complete fundamental analysis.
Keep in mind
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.