In the world of growth stocks, NASDAQ:HRMY shines as a value proposition.

Last update: Oct 12, 2023

Our stock screening tool has pinpointed HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) as a growth stock that isn't overvalued. NASDAQ:HRMY is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

ChartMill's Evaluation of Growth

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:HRMY has earned a 8 for growth:

HRMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 210.81%, which is quite impressive.
Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 36.94%.
Measured over the past years, HRMY shows a very strong growth in Revenue. The Revenue has been growing by 317.89% on average per year.
The Earnings Per Share is expected to grow by 31.06% on average over the next years. This is a very strong growth
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.76% yearly.

Valuation Assessment of NASDAQ:HRMY

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:HRMY, the assigned 8 reflects its valuation:

The Price/Earnings ratio is 9.06, which indicates a very decent valuation of HRMY.
Compared to the rest of the industry, the Price/Earnings ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 90.48% of the companies listed in the same industry.
HRMY is valuated cheaply when we compare the Price/Earnings ratio to 26.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.29, the valuation of HRMY can be described as very reasonable.
90.48% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 19.05. HRMY is valued rather cheaply when compared to this.
HRMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRMY is cheaper than 87.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
HRMY has a very decent profitability rating, which may justify a higher PE ratio.
HRMY's earnings are expected to grow with 14.10% in the coming years. This may justify a more expensive valuation.

Health Examination for NASDAQ:HRMY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:HRMY has earned a 8 out of 10:

An Altman-Z score of 5.58 indicates that HRMY is not in any danger for bankruptcy at the moment.
The Altman-Z score of HRMY (5.58) is better than 83.33% of its industry peers.
The Debt to FCF ratio of HRMY is 1.19, which is an excellent value as it means it would take HRMY, only 1.19 years of fcf income to pay off all of its debts.
HRMY has a better Debt to FCF ratio (1.19) than 94.29% of its industry peers.
HRMY has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.90 indicates that HRMY has no problem at all paying its short term obligations.
HRMY has a Current ratio of 4.90. This is in the better half of the industry: HRMY outperforms 61.43% of its industry peers.
HRMY has a Quick Ratio of 4.84. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of HRMY (4.84) is better than 63.81% of its industry peers.

Understanding NASDAQ:HRMY'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:HRMY, the assigned 7 is a significant indicator of profitability:

HRMY's Return On Assets of 26.34% is amongst the best of the industry. HRMY outperforms 97.62% of its industry peers.
HRMY's Return On Equity of 41.27% is amongst the best of the industry. HRMY outperforms 94.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.39%, HRMY belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
The last Return On Invested Capital (17.39%) for HRMY is above the 3 year average (12.91%), which is a sign of increasing profitability.
HRMY's Profit Margin of 40.14% is amongst the best of the industry. HRMY outperforms 97.14% of its industry peers.
HRMY has a better Operating Margin (29.44%) than 94.76% of its industry peers.
HRMY has a Gross Margin of 80.83%. This is amongst the best in the industry. HRMY outperforms 86.19% of its industry peers.
In the last couple of years the Gross Margin of HRMY has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of HRMY for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. 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.