NASDAQ:HRMY, a growth stock which is not overvalued.

Last update: Jan 28, 2025

HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:HRMY is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Insights: NASDAQ:HRMY

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HRMY has earned a 7 for growth:

The Revenue has grown by 25.83% in the past year. This is a very strong growth!
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.89% yearly.
Based on estimates for the next years, HRMY will show a very strong growth in Earnings Per Share. The EPS will grow by 37.92% on average per year.
Based on estimates for the next years, HRMY will show a very strong growth in Revenue. The Revenue will grow by 24.18% on average per year.

ChartMill's Evaluation of Valuation

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 7 reflects its valuation:

HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 86.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.39, HRMY is valued a bit cheaper.
A Price/Forward Earnings ratio of 11.76 indicates a reasonable valuation of HRMY.
HRMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 86.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HRMY to the average of the S&P500 Index (24.37), we can say HRMY is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 87.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 92.47% of the companies in the same industry.
The decent profitability rating of HRMY 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 Analysis for NASDAQ:HRMY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:HRMY, the assigned 8 reflects its health status:

HRMY has an Altman-Z score of 5.76. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
HRMY has a better Altman-Z score (5.76) than 82.26% of its industry peers.
The Debt to FCF ratio of HRMY is 0.83, which is an excellent value as it means it would take HRMY, only 0.83 years of fcf income to pay off all of its debts.
HRMY has a Debt to FCF ratio of 0.83. This is amongst the best in the industry. HRMY outperforms 96.24% 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.
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.

Evaluating Profitability: 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 13.21%. This is amongst the best in the industry. HRMY outperforms 96.24% of its industry peers.
HRMY's Return On Equity of 20.55% is amongst the best of the industry. HRMY outperforms 93.01% of its industry peers.
HRMY's Return On Invested Capital of 18.64% is amongst the best of the industry. HRMY outperforms 94.09% of its industry peers.
The 3 year average ROIC (18.06%) for HRMY is below the current ROIC(18.64%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 17.98%, HRMY belongs to the top of the industry, outperforming 90.86% of the companies in the same industry.
Looking at the Operating Margin, with a value of 28.21%, HRMY belongs to the top of the industry, outperforming 92.47% of the companies in the same industry.
HRMY's Operating Margin has improved in the last couple of years.
The Gross Margin of HRMY (78.65%) is better than 83.33% of its industry peers.

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

Check the latest full fundamental report of HRMY for a complete fundamental analysis.

Keep in mind

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.