NASDAQ:HRMY is showing good growth, while it is not too expensive.

Last update: Dec 18, 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.

Analyzing Growth Metrics

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:HRMY scores a 7 out of 10:

HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.24%.
Measured over the past years, HRMY shows a very strong growth in Revenue. The Revenue has been growing by 317.90% on average per year.
Based on estimates for the next years, HRMY will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.65% on average per year.
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.05% yearly.

Valuation Analysis for NASDAQ:HRMY

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:HRMY has received a 7 out of 10:

Based on the Price/Earnings ratio, HRMY is valued cheaper than 86.70% of the companies in the same industry.
HRMY is valuated cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
HRMY is valuated reasonably with a Price/Forward Earnings ratio of 9.44.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 91.13% of the companies are valued more expensively.
HRMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.07.
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 91.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaply inside the industry as 90.15% of the companies are valued more expensively.
HRMY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HRMY's earnings are expected to grow with 13.43% in the coming years.

Exploring NASDAQ:HRMY's Health

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 5.77 indicates that HRMY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.77, HRMY belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.
The Debt to FCF ratio of HRMY is 1.16, which is an excellent value as it means it would take HRMY, only 1.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.16, HRMY belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that HRMY is not too dependend on debt financing.
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 4.12. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 4.07 indicates that HRMY has no problem at all paying its short term obligations.

Profitability Analysis for NASDAQ:HRMY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HRMY, the assigned 7 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 19.39%, HRMY belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
The Return On Equity of HRMY (31.33%) is better than 94.58% of its industry peers.
HRMY has a better Return On Invested Capital (23.67%) than 96.55% of its industry peers.
The last Return On Invested Capital (23.67%) for HRMY is above the 3 year average (12.91%), which is a sign of increasing profitability.
HRMY's Profit Margin of 27.83% is amongst the best of the industry. HRMY outperforms 96.55% of its industry peers.
The Operating Margin of HRMY (36.80%) is better than 97.04% of its industry peers.
HRMY has a better Gross Margin (80.62%) than 84.73% of its industry peers.
In the last couple of years the Gross Margin of HRMY has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

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.