When you look at NASDAQ:BMRN, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Nov 22, 2024

BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) has caught the attention of our stock screener as a great value stock. NASDAQ:BMRN excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Assessment of 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 7 out of 10:

Based on the Price/Earnings ratio, BMRN is valued cheaper than 94.65% of the companies in the same industry.
94.47% of the companies in the same industry are more expensive than BMRN, based on the Price/Forward Earnings ratio.
95.19% of the companies in the same industry are more expensive than BMRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BMRN is valued cheaper than 95.54% 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.
BMRN has a very decent profitability rating, which may justify a higher PE ratio.
BMRN's earnings are expected to grow with 62.26% in the coming years. This may justify a more expensive valuation.

Understanding NASDAQ:BMRN's Profitability

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:

BMRN has a better Return On Assets (4.70%) than 95.01% of its industry peers.
Looking at the Return On Equity, with a value of 5.95%, BMRN belongs to the top of the industry, outperforming 94.83% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.27%, BMRN belongs to the best of the industry, outperforming 94.47% of the companies in the same industry.
The Profit Margin of BMRN (11.71%) is better than 95.54% of its industry peers.
BMRN has a Operating Margin of 14.88%. This is amongst the best in the industry. BMRN outperforms 95.54% of its industry peers.
BMRN has a better Gross Margin (78.95%) than 86.27% of its industry peers.

Understanding NASDAQ:BMRN's Health Score

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 7 for health:

BMRN has an Altman-Z score of 5.99. This indicates that BMRN is financially healthy and has little risk of bankruptcy at the moment.
BMRN has a better Altman-Z score (5.99) than 81.82% 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.
BMRN's Debt to FCF ratio of 1.98 is amongst the best of the industry. BMRN outperforms 95.19% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that BMRN is not too dependend on debt financing.
Even though the debt/equity ratio score it not favorable for BMRN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
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.

Assessing Growth Metrics for 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:

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.
Looking at the last year, BMRN shows a quite strong growth in Revenue. The Revenue has grown by 19.14% in the last year.
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
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

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.