NASDAQ:BMRN stands out as a growth opportunity that won't break the bank.

Here's BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) for you, a growth stock our stock screener believes is undervalued. NASDAQ:BMRN is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Unpacking NASDAQ:BMRN's Growth Rating

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:

• BMRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.27%, which is quite impressive.
• BMRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.14%.
• The Revenue has been growing by 10.16% on average over the past years. This is quite good.
• BMRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.08% yearly.
• The Revenue is expected to grow by 11.86% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Valuation looks like for NASDAQ:BMRN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:BMRN boasts a 7 out of 10:

• Based on the Price/Earnings ratio, BMRN is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.83% of the companies listed in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 95.01% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, BMRN is valued cheaper than 95.54% of the companies 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.
• A more expensive valuation may be justified as BMRN's earnings are expected to grow with 62.26% in the coming years.

Looking at the Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:BMRN, the assigned 7 reflects its health status:

• BMRN has an Altman-Z score of 6.28. This indicates that BMRN is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of BMRN (6.28) is better than 79.32% of its industry peers.
• BMRN has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.98, BMRN belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
• A Debt/Equity ratio of 0.11 indicates that BMRN is not too dependend on debt financing.
• Although BMRN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• BMRN has a Current Ratio of 4.27. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.
• BMRN has a Quick Ratio of 2.62. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:BMRN was assigned a score of 7 for profitability:

• BMRN has a better Return On Assets (4.70%) than 94.83% of its industry peers.
• BMRN's Return On Equity of 5.95% is amongst the best of the industry. BMRN outperforms 94.65% of its industry peers.
• BMRN's Return On Invested Capital of 5.27% is amongst the best of the industry. BMRN outperforms 94.30% of its industry peers.
• With an excellent Profit Margin value of 11.71%, BMRN belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
• The Operating Margin of BMRN (14.88%) is better than 95.37% of its industry peers.
• The Gross Margin of BMRN (78.95%) is better than 86.63% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.