HARMONY BIOSCIENCES HOLDINGS (HRMY) Stock Fundamental Analysis
NASDAQ:HRMY - Nasdaq - US4131971040 - Common Stock - Currency: USD
Overall HRMY gets a fundamental rating of 8 out of 10. We evaluated HRMY against 195 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! This makes HRMY very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
HRMY had positive earnings in the past year.
In the past year HRMY had a positive cash flow from operations.
HRMY had positive earnings in 4 of the past 5 years.
HRMY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.49%, HRMY belongs to the top of the industry, outperforming 96.41% of the companies in the same industry.
With an excellent Return On Equity value of 21.22%, HRMY belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.05%, HRMY belongs to the best of the industry, outperforming 94.36% of the companies in the same industry.
HRMY had an Average Return On Invested Capital over the past 3 years of 18.26%. This is above the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 21.22% | ||
| ROIC | 18.05% |
ROA(3y)19.12%
ROA(5y)10.08%
ROE(3y)31.56%
ROE(5y)9.52%
ROIC(3y)18.26%
ROIC(5y)15.28%
1.3 Margins
With an excellent Profit Margin value of 20.54%, HRMY belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
HRMY's Profit Margin has improved in the last couple of years.
The Operating Margin of HRMY (28.46%) is better than 94.36% of its industry peers.
In the last couple of years the Operating Margin of HRMY has declined.
HRMY has a Gross Margin of 78.34%. This is amongst the best in the industry. HRMY outperforms 86.67% of its industry peers.
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 | 28.46% | ||
| PM (TTM) | 20.54% | ||
| GM | 78.34% |
OM growth 3Y-2.3%
OM growth 5YN/A
PM growth 3Y21.43%
PM growth 5YN/A
GM growth 3Y-1.56%
GM growth 5Y1.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRMY is creating value.
The number of shares outstanding for HRMY remains at a similar level compared to 1 year ago.
The number of shares outstanding for HRMY has been reduced compared to 5 years ago.
Compared to 1 year ago, HRMY has an improved debt to assets ratio.
2.2 Solvency
HRMY has an Altman-Z score of 5.27. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRMY (5.27) is better than 80.51% of its industry peers.
HRMY has a debt to FCF ratio of 0.79. This is a very positive value and a sign of high solvency as it would only need 0.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.79, HRMY belongs to the top of the industry, outperforming 96.41% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that HRMY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.22, HRMY perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.79 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.83
WACC9.86%
2.3 Liquidity
HRMY has a Current Ratio of 3.67. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY's Current ratio of 3.67 is fine compared to the rest of the industry. HRMY outperforms 60.51% of its industry peers.
HRMY has a Quick Ratio of 3.64. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
HRMY has a Quick ratio of 3.64. This is in the better half of the industry: HRMY outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.64 |
3. Growth
3.1 Past
HRMY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.82%.
The Earnings Per Share has been growing by 44.61% on average over the past years. This is a very strong growth
HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.62%.
HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 160.13% yearly.
EPS 1Y (TTM)7.82%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%16.42%
Revenue 1Y (TTM)20.62%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.48%
3.2 Future
HRMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.76% yearly.
The Revenue is expected to grow by 18.23% on average over the next years. This is quite good.
EPS Next Y33.8%
EPS Next 2Y27.83%
EPS Next 3Y28.9%
EPS Next 5Y35.76%
Revenue Next Year17.85%
Revenue Next 2Y17.93%
Revenue Next 3Y18.6%
Revenue Next 5Y18.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.27, HRMY is valued correctly.
HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 88.21% 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 27.45.
With a Price/Forward Earnings ratio of 7.84, the valuation of HRMY can be described as very cheap.
88.21% of the companies in the same industry are more expensive than HRMY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HRMY to the average of the S&P500 Index (21.90), we can say HRMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 92.82% of the companies listed in the same industry.
HRMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRMY is cheaper than 92.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
HRMY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent 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 28.90% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y27.83%
EPS Next 3Y28.9%
5. Dividend
5.1 Amount
HRMY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.16
+0.05 (+0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.19%
Inst Owner Change-2.03%
Ins Owners0.56%
Ins Owner Change0.05%
Market Cap1.85B
Analysts80
Price Target52.02 (61.75%)
Short Float %8.5%
Short Ratio5.49
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)21.9%
Min EPS beat(2)12.8%
Max EPS beat(2)31%
EPS beat(4)4
Avg EPS beat(4)117.47%
Min EPS beat(4)12.8%
Max EPS beat(4)409.61%
EPS beat(8)6
Avg EPS beat(8)58.83%
EPS beat(12)9
Avg EPS beat(12)123.33%
EPS beat(16)12
Avg EPS beat(16)89.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.91%
Revenue beat(8)1
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.54%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)0.22%
PT rev (3m)-1.71%
EPS NQ rev (1m)-10.2%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)2.39%
EPS NY rev (3m)6.9%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 7.84 | ||
| P/S | 2.48 | ||
| P/FCF | 8.33 | ||
| P/OCF | 8.28 | ||
| P/B | 2.56 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)2.62
EY8.15%
EPS(NY)4.1
Fwd EY12.75%
FCF(TTM)3.86
FCFY12.01%
OCF(TTM)3.88
OCFY12.08%
SpS12.97
BVpS12.56
TBVpS10.69
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 21.22% | ||
| ROCE | 24.06% | ||
| ROIC | 18.05% | ||
| ROICexc | 42.52% | ||
| ROICexgc | 59.55% | ||
| OM | 28.46% | ||
| PM (TTM) | 20.54% | ||
| GM | 78.34% | ||
| FCFM | 29.77% |
ROA(3y)19.12%
ROA(5y)10.08%
ROE(3y)31.56%
ROE(5y)9.52%
ROIC(3y)18.26%
ROIC(5y)15.28%
ROICexc(3y)40.77%
ROICexc(5y)37.46%
ROICexgc(3y)77.32%
ROICexgc(5y)N/A
ROCE(3y)24.34%
ROCE(5y)20.37%
ROICexcg growth 3Y-76.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y-3.85%
ROICexc growth 5YN/A
OM growth 3Y-2.3%
OM growth 5YN/A
PM growth 3Y21.43%
PM growth 5YN/A
GM growth 3Y-1.56%
GM growth 5Y1.26%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.79 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 5.3% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 12.76 | ||
| Cash Conversion | 94.51% | ||
| Profit Quality | 144.92% | ||
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.64 | ||
| Altman-Z | 5.27 |
F-Score5
WACC9.86%
ROIC/WACC1.83
Cap/Depr(3y)59.28%
Cap/Depr(5y)142.27%
Cap/Sales(3y)3.13%
Cap/Sales(5y)8.45%
Profit Quality(3y)125.98%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.82%
EPS 3Y44.61%
EPS 5YN/A
EPS Q2Q%16.42%
EPS Next Y33.8%
EPS Next 2Y27.83%
EPS Next 3Y28.9%
EPS Next 5Y35.76%
Revenue 1Y (TTM)20.62%
Revenue growth 3Y32.77%
Revenue growth 5Y160.13%
Sales Q2Q%19.48%
Revenue Next Year17.85%
Revenue Next 2Y17.93%
Revenue Next 3Y18.6%
Revenue Next 5Y18.23%
EBIT growth 1Y4.13%
EBIT growth 3Y29.72%
EBIT growth 5YN/A
EBIT Next Year52.59%
EBIT Next 3Y31.55%
EBIT Next 5Y25.65%
FCF growth 1Y40.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.96%
OCF growth 3Y30.67%
OCF growth 5YN/A