NASDAQ:HRMY is an undervalued gem with solid fundamentals.

Last update: Nov 1, 2023

Take a closer look at HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY), a remarkable value stock uncovered by our stock screener. NASDAQ:HRMY excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Assessing Valuation for NASDAQ:HRMY

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:HRMY boasts a 8 out of 10:

Based on the Price/Earnings ratio of 6.82, the valuation of HRMY can be described as very cheap.
92.23% of the companies in the same industry are more expensive than HRMY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 22.86. HRMY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.29 indicates a rather cheap valuation of HRMY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 93.69% of the companies listed in the same industry.
HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.20, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 93.69% of the companies listed in the same industry.
HRMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRMY is cheaper than 95.63% of the companies in the same industry.
The decent profitability rating of HRMY may justify a higher PE ratio.
HRMY's earnings are expected to grow with 12.24% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NASDAQ:HRMY

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:HRMY scores a 7 out of 10:

Looking at the Return On Assets, with a value of 26.34%, HRMY belongs to the top of the industry, outperforming 97.57% of the companies in the same industry.
Looking at the Return On Equity, with a value of 41.27%, HRMY belongs to the top of the industry, outperforming 94.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.39%, HRMY belongs to the top of the industry, outperforming 94.17% 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.
The Profit Margin of HRMY (40.14%) is better than 97.09% of its industry peers.
HRMY has a Operating Margin of 29.44%. This is amongst the best in the industry. HRMY outperforms 94.66% of its industry peers.
HRMY has a better Gross Margin (80.83%) than 85.44% of its industry peers.
HRMY's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NASDAQ:HRMY

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:HRMY was assigned a score of 8 for health:

An Altman-Z score of 4.06 indicates that HRMY is not in any danger for bankruptcy at the moment.
The Altman-Z score of HRMY (4.06) is better than 81.07% of its industry peers.
HRMY has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
HRMY has a better Debt to FCF ratio (1.19) than 94.17% 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.
Even though the debt/equity ratio score it not favorable for HRMY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
HRMY has a Current Ratio of 4.90. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a better Current ratio (4.90) than 61.16% 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.
HRMY's Quick ratio of 4.84 is fine compared to the rest of the industry. HRMY outperforms 63.59% of its industry peers.

Growth Examination for NASDAQ:HRMY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HRMY has received a 8 out of 10:

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.
The Revenue has grown by 36.94% in the past year. This is a very strong growth!
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 317.89% yearly.
The Earnings Per Share is expected to grow by 17.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 24.61% on average over the next years. This is a very strong growth

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of HRMY contains the most current fundamental analsysis.

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.