HARMONY BIOSCIENCES HOLDINGS (HRMY) Stock Fundamental Analysis
NASDAQ:HRMY - Nasdaq - US4131971040 - Common Stock - Currency: USD
Overall HRMY gets a fundamental rating of 7 out of 10. We evaluated HRMY against 194 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making HRMY a very profitable company, without any liquidiy or solvency issues. HRMY has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, HRMY could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year HRMY was profitable.
In the past year HRMY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HRMY reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: HRMY reported negative operating cash flow in multiple years.
1.2 Ratios
HRMY has a Return On Assets of 13.21%. This is amongst the best in the industry. HRMY outperforms 96.76% of its industry peers.
HRMY has a better Return On Equity (20.55%) than 93.51% of its industry peers.
With an excellent Return On Invested Capital value of 18.64%, HRMY belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRMY is significantly below the industry average of 44.04%.
The last Return On Invested Capital (18.64%) for HRMY is above the 3 year average (18.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.21% | ||
| ROE | 20.55% | ||
| ROIC | 18.64% |
ROA(3y)16.93%
ROA(5y)-27.92%
ROE(3y)30.4%
ROE(5y)N/A
ROIC(3y)18.06%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 17.98%, HRMY belongs to the best of the industry, outperforming 90.81% of the companies in the same industry.
With an excellent Operating Margin value of 28.21%, HRMY belongs to the best of the industry, outperforming 92.43% of the companies in the same industry.
HRMY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 78.65%, HRMY belongs to the best of the industry, outperforming 83.24% of the companies in the same industry.
In the last couple of years the Gross Margin of HRMY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.21% | ||
| PM (TTM) | 17.98% | ||
| GM | 78.65% |
OM growth 3Y46.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.43%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRMY is creating value.
Compared to 1 year ago, HRMY has less shares outstanding
Compared to 5 years ago, HRMY has less shares outstanding
The debt/assets ratio for HRMY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.42 indicates that HRMY is not in any danger for bankruptcy at the moment.
HRMY has a better Altman-Z score (5.42) than 81.62% 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.
Looking at the Debt to FCF ratio, with a value of 0.83, HRMY belongs to the top of the industry, outperforming 95.68% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that HRMY is not too dependend on debt financing.
HRMY has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 5.42 |
ROIC/WACC1.88
WACC9.94%
2.3 Liquidity
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's Current ratio of 3.24 is in line compared to the rest of the industry. HRMY outperforms 51.89% of its industry peers.
A Quick Ratio of 3.20 indicates that HRMY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.20, HRMY is in line with its industry, outperforming 54.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.24 | ||
| Quick Ratio | 3.2 |
3. Growth
3.1 Past
HRMY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.55%.
Looking at the last year, HRMY shows a very strong growth in Revenue. The Revenue has grown by 25.83%.
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.89% yearly.
EPS 1Y (TTM)-23.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.33%
Revenue 1Y (TTM)25.83%
Revenue growth 3Y53.89%
Revenue growth 5YN/A
Sales Q2Q%16.08%
3.2 Future
The Earnings Per Share is expected to grow by 37.92% on average over the next years. This is a very strong growth
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.18% yearly.
EPS Next Y0.16%
EPS Next 2Y18.16%
EPS Next 3Y23.6%
EPS Next 5Y37.92%
Revenue Next Year22.56%
Revenue Next 2Y20.67%
Revenue Next 3Y21.27%
Revenue Next 5Y24.18%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.38, which indicates a correct valuation of HRMY.
Based on the Price/Earnings ratio, HRMY is valued cheaply inside the industry as 85.41% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (29.63), we can say HRMY is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.23, which indicates a very decent valuation of HRMY.
89.19% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, HRMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRMY is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
HRMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRMY is cheaper than 91.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.95 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HRMY has a very decent profitability rating, which may justify a higher PE ratio.
HRMY's earnings are expected to grow with 23.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)105
PEG (5Y)N/A
EPS Next 2Y18.16%
EPS Next 3Y23.6%
5. Dividend
5.1 Amount
HRMY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.56
-0.33 (-0.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners72.67%
Inst Owner Change4.43%
Ins Owners0.51%
Ins Owner Change-52.85%
Market Cap1.97B
Analysts80
Price Target55.31 (60.04%)
Short Float %9.77%
Short Ratio6.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)213.04%
Min EPS beat(2)16.47%
Max EPS beat(2)409.61%
EPS beat(4)3
Avg EPS beat(4)106.73%
Min EPS beat(4)-7.85%
Max EPS beat(4)409.61%
EPS beat(8)6
Avg EPS beat(8)62.25%
EPS beat(12)9
Avg EPS beat(12)125.88%
EPS beat(16)12
Avg EPS beat(16)190.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.13%
Revenue beat(12)4
Avg Revenue beat(12)-0.78%
Revenue beat(16)7
Avg Revenue beat(16)0.22%
PT rev (1m)0.7%
PT rev (3m)22.95%
EPS NQ rev (1m)3.01%
EPS NQ rev (3m)5.75%
EPS NY rev (1m)3.12%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 10.23 | ||
| P/S | 2.89 | ||
| P/FCF | 8.95 | ||
| P/OCF | 8.92 | ||
| P/B | 3.3 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)2.11
EY6.11%
EPS(NY)3.38
Fwd EY9.78%
FCF(TTM)3.86
FCFY11.17%
OCF(TTM)3.87
OCFY11.21%
SpS11.96
BVpS10.46
TBVpS8.37
PEG (NY)105
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.21% | ||
| ROE | 20.55% | ||
| ROCE | 25.09% | ||
| ROIC | 18.64% | ||
| ROICexc | 40.12% | ||
| ROICexgc | 60.28% | ||
| OM | 28.21% | ||
| PM (TTM) | 17.98% | ||
| GM | 78.65% | ||
| FCFM | 32.29% |
ROA(3y)16.93%
ROA(5y)-27.92%
ROE(3y)30.4%
ROE(5y)N/A
ROIC(3y)18.06%
ROIC(5y)N/A
ROICexc(3y)42.04%
ROICexc(5y)N/A
ROICexgc(3y)1605.28%
ROICexgc(5y)N/A
ROCE(3y)24.3%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y35.21%
ROICexc growth 5YN/A
OM growth 3Y46.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.43%
GM growth 5YN/A
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 3.11% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 10.98 | ||
| Cash Conversion | 102.01% | ||
| Profit Quality | 179.57% | ||
| Current Ratio | 3.24 | ||
| Quick Ratio | 3.2 | ||
| Altman-Z | 5.42 |
F-Score6
WACC9.94%
ROIC/WACC1.88
Cap/Depr(3y)235.53%
Cap/Depr(5y)610.69%
Cap/Sales(3y)14.03%
Cap/Sales(5y)258.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.33%
EPS Next Y0.16%
EPS Next 2Y18.16%
EPS Next 3Y23.6%
EPS Next 5Y37.92%
Revenue 1Y (TTM)25.83%
Revenue growth 3Y53.89%
Revenue growth 5YN/A
Sales Q2Q%16.08%
Revenue Next Year22.56%
Revenue Next 2Y20.67%
Revenue Next 3Y21.27%
Revenue Next 5Y24.18%
EBIT growth 1Y-3.52%
EBIT growth 3Y124.82%
EBIT growth 5YN/A
EBIT Next Year23.06%
EBIT Next 3Y30.27%
EBIT Next 5Y22.1%
FCF growth 1Y91.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.18%
OCF growth 3YN/A
OCF growth 5YN/A