In the world of growth stocks, HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) shines as a value proposition.

Uncover the potential of HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY), a growth stock that our stock screener found to be reasonably priced. HRMY is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

How We Gauge Growth for 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 HRMY, the assigned 9 reflects its growth potential:

• The Earnings Per Share has been growing by 44.61% on average over the past years. This is a very strong growth
• Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 22.80%.
• The Revenue has been growing by 160.13% on average over the past years. This is a very strong growth!
• HRMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.90% yearly.
• HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.10% yearly.

Assessing Valuation for 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. HRMY boasts a 9 out of 10:

• HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 89.23% of the companies in the same industry.
• HRMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.85.
• Based on the Price/Forward Earnings ratio of 10.35, 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 88.21% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, HRMY is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaper than 92.82% of the companies in the same industry.
• HRMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRMY is cheaper than 93.33% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• HRMY has an outstanding 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 31.63% in the coming years.

Understanding HRMY's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. HRMY was assigned a score of 8 for health:

• An Altman-Z score of 5.18 indicates that HRMY is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.18, HRMY belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
• HRMY has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
• HRMY has a better Debt to FCF ratio (0.82) than 96.41% of its industry peers.
• A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
• HRMY has a Current Ratio of 3.31. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 3.27 indicates that HRMY has no problem at all paying its short term obligations.

Evaluating Profitability: 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 HRMY, the assigned 8 is noteworthy for profitability:

• HRMY's Return On Assets of 14.56% is amongst the best of the industry. HRMY outperforms 96.41% of its industry peers.
• HRMY has a Return On Equity of 22.07%. This is amongst the best in the industry. HRMY outperforms 94.87% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 18.94%, HRMY belongs to the top of the industry, outperforming 94.36% of the companies in the same industry.
• The last Return On Invested Capital (18.94%) for HRMY is above the 3 year average (18.27%), which is a sign of increasing profitability.
• HRMY's Profit Margin of 20.36% is amongst the best of the industry. HRMY outperforms 92.82% of its industry peers.
• In the last couple of years the Profit Margin of HRMY has grown nicely.
• The Operating Margin of HRMY (29.09%) is better than 94.36% of its industry peers.
• HRMY has a better Gross Margin (78.06%) than 84.10% of its industry peers.

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

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

Disclaimer

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.