NASDAQ:BMRN is showing decent growth, but is still valued reasonably.

Last update: Jan 14, 2025

Our stock screener has spotted BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) as a growth stock which is not overvalued. NASDAQ:BMRN is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Growth: NASDAQ:BMRN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:BMRN scores 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.
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 48.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.77% 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.

Valuation Examination for NASDAQ:BMRN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:BMRN has achieved a 7 out of 10:

BMRN's Price/Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.51% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, BMRN is valued cheaply inside the industry as 94.34% of the companies are valued more expensively.
95.04% 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 94.51% 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.
A more expensive valuation may be justified as BMRN's earnings are expected to grow with 61.96% in the coming years.

Unpacking NASDAQ:BMRN's Health Rating

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 7 for health provides valuable insights:

An Altman-Z score of 6.27 indicates that BMRN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.27, BMRN belongs to the best of the industry, outperforming 82.83% 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 has a Debt to FCF ratio of 1.98. This is amongst the best in the industry. BMRN outperforms 95.22% of its industry peers.
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.
A Quick Ratio of 2.62 indicates that BMRN has no problem at all paying 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:

Looking at the Return On Assets, with a value of 4.70%, BMRN belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
BMRN has a better Return On Equity (5.95%) than 94.69% 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 94.87% of the companies in the same industry.
With an excellent Profit Margin value of 11.71%, BMRN belongs to the best of the industry, outperforming 95.58% of the companies in the same industry.
The Operating Margin of BMRN (14.88%) is better than 95.93% of its industry peers.
Looking at the Gross Margin, with a value of 78.95%, BMRN belongs to the top of the industry, outperforming 86.55% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.