NASDAQ:BMRN, a growth stock which is not overvalued.

Last update: Dec 24, 2024

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.

Evaluating Growth: NASDAQ:BMRN

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:BMRN has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 127.27% over the past year.
The Revenue has grown by 19.14% 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 47.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
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.

Assessing Valuation for NASDAQ:BMRN

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 7 reflects its valuation:

BMRN's Price/Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.66% of the companies listed in the same industry.
Based on the Enterprise Value to EBITDA ratio, BMRN is valued cheaper than 95.20% of the companies in the same industry.
BMRN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.84% 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.
BMRN's earnings are expected to grow with 61.96% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

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 6.21. This indicates that BMRN is financially healthy and has little risk of bankruptcy at the moment.
BMRN has a Altman-Z score of 6.21. This is amongst the best in the industry. BMRN outperforms 82.56% 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 95.20% of the companies in the same industry.
BMRN has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
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.
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.

Profitability Insights: NASDAQ:BMRN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:BMRN has earned a 7 out of 10:

BMRN's Return On Assets of 4.70% is amongst the best of the industry. BMRN outperforms 94.66% 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 94.66% of the companies in the same industry.
BMRN has a Return On Invested Capital of 5.27%. This is amongst the best in the industry. BMRN outperforms 94.84% of its industry peers.
The Profit Margin of BMRN (11.71%) is better than 95.55% of its industry peers.
With an excellent Operating Margin value of 14.88%, BMRN belongs to the best of the industry, outperforming 95.91% of the companies in the same industry.
The Gross Margin of BMRN (78.95%) is better than 86.48% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of BMRN

Disclaimer

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.