Investors should take note of NASDAQ:HRMY, a growth stock that remains attractively priced.

Last update: Jan 7, 2025

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.

How do we evaluate the Growth for NASDAQ:HRMY?

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%.
Measured over the past years, HRMY shows a very strong growth in Revenue. The Revenue has been growing by 53.89% on average per year.
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.
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.16% yearly.

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 7 out of 10:

HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 86.41% of the companies in the same industry.
HRMY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.60, the valuation of HRMY can be described as reasonable.
HRMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 86.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.67, HRMY is valued rather cheaply.
HRMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRMY is cheaper than 89.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 92.93% 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 25.88% in the coming years.

Health Insights: NASDAQ:HRMY

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HRMY has received a 8 out of 10:

An Altman-Z score of 5.38 indicates that HRMY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.38, HRMY belongs to the top of the industry, outperforming 80.43% 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.
The Debt to FCF ratio of HRMY (0.83) is better than 96.74% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that HRMY is not too dependend on debt financing.
A Current Ratio of 3.24 indicates that HRMY has no problem at all paying its short term obligations.
A Quick Ratio of 3.20 indicates that HRMY has no problem at all paying its short term obligations.

What does the Profitability looks like 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:

Looking at the Return On Assets, with a value of 13.21%, HRMY belongs to the top of the industry, outperforming 96.20% of the companies in the same industry.
With an excellent Return On Equity value of 20.55%, HRMY belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.64%, HRMY belongs to the best of the industry, outperforming 94.02% 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.
HRMY has a better Profit Margin (17.98%) than 90.76% of its industry peers.
Looking at the Operating Margin, with a value of 28.21%, HRMY belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
In the last couple of years the Operating Margin of HRMY has grown nicely.
The Gross Margin of HRMY (78.65%) is better than 83.15% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth 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. 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.