Discover HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY), an undervalued stock highlighted by our stock screener. NASDAQ:HRMY showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.
Valuation Analysis 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 11.16, the valuation of HRMY can be described as reasonable.
- 88.61% of the companies in the same industry are more expensive than HRMY, based on the Price/Earnings ratio.
- HRMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
- A Price/Forward Earnings ratio of 8.63 indicates a reasonable valuation of HRMY.
- Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 93.56% of the companies are valued more expensively.
- HRMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.90, 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 92.57% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HRMY is valued cheaply inside the industry as 92.08% of the companies are valued more expensively.
- The decent profitability rating of HRMY may justify a higher PE ratio.
- HRMY's earnings are expected to grow with 13.43% in the coming years. This may justify a more expensive valuation.
A Closer Look at Profitability for NASDAQ:HRMY
Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HRMY has achieved a 7:
- The Return On Assets of HRMY (19.39%) is better than 96.53% of its industry peers.
- HRMY has a Return On Equity of 31.33%. This is amongst the best in the industry. HRMY outperforms 94.55% of its industry peers.
- HRMY's Return On Invested Capital of 23.67% is amongst the best of the industry. HRMY outperforms 96.53% 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 has a better Profit Margin (27.83%) than 96.53% of its industry peers.
- Looking at the Operating Margin, with a value of 36.80%, HRMY belongs to the top of the industry, outperforming 97.03% of the companies in the same industry.
- The Gross Margin of HRMY (80.62%) is better than 84.65% of its industry peers.
- HRMY's Gross Margin has improved in the last couple of years.
Health Examination for NASDAQ:HRMY
Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HRMY has achieved a 8 out of 10:
- HRMY has an Altman-Z score of 5.43. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
- HRMY has a better Altman-Z score (5.43) than 81.68% of its industry peers.
- HRMY has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
- HRMY has a better Debt to FCF ratio (1.16) than 93.07% of its industry peers.
- 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.
- 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.
- HRMY has a Quick Ratio of 4.07. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
Growth Insights: NASDAQ:HRMY
ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:HRMY, the assigned 7 reflects its growth potential:
- Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 35.24%.
- HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 317.90% yearly.
- The Earnings Per Share is expected to grow by 19.65% on average over the next years. This is quite good.
- HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.05% 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.
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.