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.
ChartMill's Evaluation of Growth
ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:BMRN, the assigned 7 reflects its growth potential:
- The Earnings Per Share has grown by an impressive 127.27% over the past year.
- Looking at the last year, BMRN shows a quite strong growth in Revenue. The Revenue has grown by 19.14% 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.
- Based on estimates for the next years, BMRN will show a very strong growth in Earnings Per Share. The EPS will grow by 49.08% on average per year.
- 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.
Understanding NASDAQ:BMRN's Valuation Score
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 cheaper than 94.53% of the companies in the same industry.
- Based on the Price/Forward Earnings ratio, BMRN is valued cheaper than 94.89% of the companies in the same industry.
- Based on the Enterprise Value to EBITDA ratio, BMRN is valued cheaper than 95.41% of the companies in the same industry.
- 95.41% of the companies in the same industry are more expensive than BMRN, based on the Price/Free Cash Flow ratio.
- The 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 Health Score
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 6.20. This indicates that BMRN is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.20, BMRN belongs to the best of the industry, outperforming 80.78% of the companies in the same industry.
- The Debt to FCF ratio of BMRN is 1.98, which is an excellent value as it means it would take BMRN, only 1.98 years of fcf income to pay off all of its debts.
- BMRN's Debt to FCF ratio of 1.98 is amongst the best of the industry. BMRN outperforms 95.41% 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.
- A Current Ratio of 4.27 indicates that BMRN has no problem at all paying 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.
Exploring NASDAQ:BMRN's Profitability
ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:BMRN, the assigned 7 is a significant indicator of profitability:
- With an excellent Return On Assets value of 4.70%, BMRN belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
- BMRN's Return On Equity of 5.95% is amongst the best of the industry. BMRN outperforms 95.06% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.27%, BMRN belongs to the top of the industry, outperforming 94.89% of the companies in the same industry.
- BMRN's Profit Margin of 11.71% is amongst the best of the industry. BMRN outperforms 95.77% of its industry peers.
- With an excellent Operating Margin value of 14.88%, BMRN belongs to the best of the industry, outperforming 95.94% of the companies in the same industry.
- With an excellent Gross Margin value of 78.95%, BMRN belongs to the best of the industry, outperforming 86.60% of the companies in the same industry.
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. 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.