Investors should take note of NASDAQ:BMRN, a growth stock that remains attractively priced.

Last update: Jul 2, 2024

Consider BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) as an affordable growth stock, identified by our stock screening tool. NASDAQ:BMRN is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

How do we evaluate the Growth for NASDAQ:BMRN?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:BMRN scores a 7 out of 10:

The Earnings Per Share has grown by an impressive 200.00% over the past year.
The Revenue has grown by 13.74% 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 49.08% 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 11.86% yearly.
When comparing the EPS 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 Score

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:BMRN, the assigned 6 reflects its valuation:

Based on the Price/Earnings ratio, BMRN is valued cheaper than 94.42% of the companies in the same industry.
93.72% of the companies in the same industry are more expensive than BMRN, based on the Price/Forward Earnings ratio.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.24% of the companies listed in the same industry.
BMRN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMRN is cheaper than 95.11% of the companies in the same industry.
BMRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BMRN may justify a higher PE ratio.
A more expensive valuation may be justified as BMRN's earnings are expected to grow with 63.06% in the coming years.

Assessing Health Metrics for 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 5.87 indicates that BMRN is not in any danger for bankruptcy at the moment.
The Altman-Z score of BMRN (5.87) is better than 80.45% of its industry peers.
With an excellent Debt to FCF ratio value of 6.67, BMRN belongs to the best of the industry, outperforming 94.76% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that BMRN is not too dependend on debt financing.
BMRN has a Current Ratio of 2.74. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NASDAQ:BMRN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:BMRN, the assigned 7 is noteworthy for profitability:

The Return On Assets of BMRN (2.99%) is better than 94.94% of its industry peers.
Looking at the Return On Equity, with a value of 4.05%, BMRN belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
The Return On Invested Capital of BMRN (2.42%) is better than 94.42% of its industry peers.
BMRN has a Profit Margin of 8.31%. This is amongst the best in the industry. BMRN outperforms 95.46% of its industry peers.
BMRN has a Operating Margin of 7.17%. This is amongst the best in the industry. BMRN outperforms 94.42% of its industry peers.
With an excellent Gross Margin value of 79.23%, BMRN belongs to the best of the industry, outperforming 87.09% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of BMRN contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.