NASDAQ:BMRN is an undervalued gem with solid fundamentals.

Last update: Jan 27, 2025

Our stock screener has spotted BIOMARIN PHARMACEUTICAL INC (NASDAQ:BMRN) as an undervalued stock with solid fundamentals. NASDAQ:BMRN shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Examination 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:

Compared to the rest of the industry, the Price/Earnings ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.51% of the companies listed in the same industry.
BMRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.87% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, BMRN is valued cheaper than 95.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMRN is valued cheaply inside the industry as 94.87% of the companies are valued more expensively.
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.
A more expensive valuation may be justified as BMRN's earnings are expected to grow with 61.96% in the coming years.

Profitability Examination for NASDAQ:BMRN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:BMRN scores a 7 out of 10:

The Return On Assets of BMRN (4.70%) is better than 94.87% of its industry peers.
BMRN's Return On Equity of 5.95% is amongst the best of the industry. BMRN outperforms 94.69% of its industry peers.
The Return On Invested Capital of BMRN (5.27%) is better than 94.87% of its industry peers.
Looking at the Profit Margin, with a value of 11.71%, BMRN belongs to the top of the industry, outperforming 95.58% of the companies in the same industry.
BMRN's Operating Margin of 14.88% is amongst the best of the industry. BMRN outperforms 95.93% of its industry peers.
BMRN's Gross Margin of 78.95% is amongst the best of the industry. BMRN outperforms 86.55% of its industry peers.

Assessing Health for NASDAQ:BMRN

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 5.85 indicates that BMRN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.85, BMRN belongs to the best of the industry, outperforming 82.12% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.98, BMRN belongs to the best of the industry, outperforming 95.22% 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.
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.
A Quick Ratio of 2.62 indicates that BMRN has no problem at all paying its short term obligations.

A Closer Look at Growth 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.
BMRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.14%.
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 48.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, BMRN will show a quite strong growth in Revenue. The Revenue will grow by 9.77% on average per year.
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.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.