NASDAQ:BMRN is not too expensive for the growth it is showing.

Discover BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN), an undervalued growth gem identified by our stock screener. NASDAQ:BMRN is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Evaluating Growth: NASDAQ:BMRN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:BMRN has achieved a 7 out of 10:

• The Earnings Per Share has grown by an impressive 248.08% over the past year.
• Looking at the last year, BMRN shows a quite strong growth in Revenue. The Revenue has grown by 15.84% in the last year.
• BMRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.16% yearly.
• 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.

Valuation Examination for NASDAQ:BMRN

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:BMRN has received a 6 out of 10:

• Based on the Price/Earnings ratio, BMRN is valued cheaply inside the industry as 95.28% of the companies are valued more expensively.
• 93.18% of the companies in the same industry are more expensive than BMRN, based on the Price/Forward Earnings ratio.
• Based on the Enterprise Value to EBITDA ratio, BMRN is valued cheaper than 94.58% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.93% of the companies listed in the same industry.
• The 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.
• BMRN's earnings are expected to grow with 62.40% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NASDAQ:BMRN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:BMRN, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 6.60 indicates that BMRN is not in any danger for bankruptcy at the moment.
• The Altman-Z score of BMRN (6.60) is better than 82.34% of its industry peers.
• The Debt to FCF ratio of BMRN (5.12) is better than 95.80% of its industry peers.
• A Debt/Equity ratio of 0.11 indicates that BMRN is not too dependend on debt financing.
• A Current Ratio of 3.05 indicates that BMRN has no problem at all paying its short term obligations.

Profitability Analysis 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:

• Looking at the Return On Assets, with a value of 3.63%, BMRN belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
• With an excellent Return On Equity value of 4.85%, BMRN belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 3.66%, BMRN belongs to the top of the industry, outperforming 94.76% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 9.91%, BMRN belongs to the top of the industry, outperforming 96.33% of the companies in the same industry.
• The Operating Margin of BMRN (10.73%) is better than 95.10% of its industry peers.
• BMRN's Gross Margin of 80.07% is amongst the best of the industry. BMRN outperforms 87.06% of its industry peers.

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