HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Consider HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) as a top value stock, identified by our stock screening tool. HRMY shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Examination for HRMY

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 HRMY, the assigned 9 reflects its valuation:

• With a Price/Earnings ratio of 11.70, the valuation of HRMY can be described as very reasonable.
• HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 88.89% of the companies in the same industry.
• When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (28.87), we can say HRMY is valued rather cheaply.
• With a Price/Forward Earnings ratio of 9.35, the valuation of HRMY can be described as very reasonable.
• HRMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 88.89% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, HRMY is valued rather cheaply.
• 92.93% 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 cheaply inside the industry as 92.42% of the companies are valued more expensively.
• 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.
• HRMY's earnings are expected to grow with 31.63% in the coming years. This may justify a more expensive valuation.

Profitability Examination for HRMY

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

• Looking at the Return On Assets, with a value of 14.56%, HRMY belongs to the top of the industry, outperforming 95.96% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 22.07%, HRMY belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
• HRMY has a Return On Invested Capital of 18.94%. This is amongst the best in the industry. HRMY outperforms 93.43% of its industry peers.
• 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 has a Profit Margin of 20.36%. This is amongst the best in the industry. HRMY outperforms 92.93% of its industry peers.
• HRMY's Profit Margin has improved in the last couple of years.
• HRMY's Operating Margin of 29.09% is amongst the best of the industry. HRMY outperforms 93.43% of its industry peers.
• The Gross Margin of HRMY (78.06%) is better than 84.34% of its industry peers.

Evaluating Health: 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. HRMY has achieved a 8 out of 10:

• HRMY has an Altman-Z score of 4.86. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.86, HRMY belongs to the best of the industry, outperforming 81.82% 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.
• With an excellent Debt to FCF ratio value of 0.82, HRMY belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
• 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.
• The Quick ratio of HRMY (3.27) is better than 60.10% of its industry peers.

Evaluating Growth: HRMY

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. HRMY scores a 9 out of 10:

• Measured over the past years, HRMY shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.61% on average per year.
• The Revenue has grown by 22.80% in the past year. This is a very strong growth!
• Measured over the past years, HRMY shows a very strong growth in Revenue. The Revenue has been growing by 160.13% on average per year.
• The Earnings Per Share is expected to grow by 36.90% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 21.10% on average over the next years. This is a very strong growth

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.