NASDAQ:HRMY is not too expensive for the growth it is showing.

Last update: Dec 16, 2024

HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) was identified as an affordable growth stock by our stock screener. NASDAQ:HRMY is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Deciphering NASDAQ:HRMY's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:HRMY was assigned a score of 7 for growth:

HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.83%.
The Revenue has been growing by 53.89% on average over the past years. This is a very strong growth!
Based on estimates for the next years, HRMY will show a very strong growth in Earnings Per Share. The EPS will grow by 30.50% on average per year.
The Revenue is expected to grow by 21.16% on average over the next years. This is a very strong growth

Valuation Assessment of NASDAQ:HRMY

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:HRMY has achieved a 7 out of 10:

HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 87.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.00. HRMY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.97, which indicates a very decent valuation of HRMY.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaply inside the industry as 88.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HRMY to the average of the S&P500 Index (23.60), we can say HRMY is valued rather cheaply.
90.58% of the companies in the same industry are more expensive than HRMY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 92.67% of the companies in the same industry.
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 24.42% in the coming years.

Health Assessment of NASDAQ:HRMY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:HRMY, the assigned 8 for health provides valuable insights:

HRMY has an Altman-Z score of 5.16. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.16, HRMY belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
HRMY has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.83, HRMY belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
HRMY has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
HRMY has a Current Ratio of 3.24. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a Quick Ratio of 3.20. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NASDAQ:HRMY

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:

Looking at the Return On Assets, with a value of 13.21%, HRMY belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
HRMY has a Return On Equity of 20.55%. This is amongst the best in the industry. HRMY outperforms 92.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.64%, HRMY belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
The 3 year average ROIC (18.06%) for HRMY is below the current ROIC(18.64%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 17.98%, HRMY belongs to the best of the industry, outperforming 91.10% of the companies in the same industry.
HRMY has a better Operating Margin (28.21%) than 92.67% of its industry peers.
In the last couple of years the Operating Margin of HRMY has grown nicely.
HRMY has a better Gross Margin (78.65%) than 83.77% of its industry peers.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.