NASDAQ:HRMY is probably undervalued for the fundamentals it is displaying.

Last update: Nov 22, 2023

HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:HRMY showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Insights: 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:

HRMY is valuated reasonably with a Price/Earnings ratio of 9.95.
Based on the Price/Earnings ratio, HRMY is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.39. HRMY is valued rather cheaply when compared to this.
HRMY is valuated reasonably with a Price/Forward Earnings ratio of 8.51.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaper than 90.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.49, HRMY is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaper than 93.66% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 92.20% of the companies listed 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.

Profitability Examination for 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:

HRMY has a Return On Assets of 19.38%. This is amongst the best in the industry. HRMY outperforms 95.61% of its industry peers.
Looking at the Return On Equity, with a value of 31.32%, HRMY belongs to the top of the industry, outperforming 93.66% of the companies in the same industry.
HRMY has a better Return On Invested Capital (23.68%) than 96.59% of its industry peers.
The 3 year average ROIC (12.91%) for HRMY is below the current ROIC(23.68%), indicating increased profibility in the last year.
HRMY has a better Profit Margin (27.82%) than 95.61% of its industry peers.
With an excellent Operating Margin value of 36.80%, HRMY belongs to the best of the industry, outperforming 97.07% of the companies in the same industry.
HRMY's Gross Margin of 80.63% is amongst the best of the industry. HRMY outperforms 84.88% of its industry peers.
In the last couple of years the Gross Margin of HRMY has grown nicely.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:HRMY has earned a 8 out of 10:

An Altman-Z score of 5.03 indicates that HRMY is not in any danger for bankruptcy at the moment.
The Altman-Z score of HRMY (5.03) is better than 82.93% of its industry peers.
The Debt to FCF ratio of HRMY is 1.17, which is an excellent value as it means it would take HRMY, only 1.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.17, HRMY belongs to the top of the industry, outperforming 93.66% of the companies in the same industry.
HRMY has a Debt/Equity ratio of 0.38. 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.
A Current Ratio of 4.12 indicates that HRMY has no problem at all paying its short term obligations.
A Quick Ratio of 4.07 indicates that HRMY has no problem at all paying its short term obligations.

Growth Assessment of NASDAQ:HRMY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:HRMY boasts a 7 out of 10:

Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 35.22%.
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 317.89% yearly.
HRMY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.61% yearly.
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.61% yearly.

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

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

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.