Harmony Biosciences Holdings, Inc. Fundamental Analysis (NASDAQ: HRMY)
Harmony Biosciences Holdings, Inc. Fundamental Analysis (NASDAQ: HRMY)
Harmony Biosciences Holdings, Inc. (NASDAQ: HRMY) shows moderate financial fundamentals with a PE ratio of 14.33, profit margin of 16.20%, and ROE of 17.19%. The company generates $0.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HRMY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHRMY demonstrates superior asset utilization.
Valuation Score
ExcellentHRMY trades at attractive valuation levels.
Growth Score
ModerateHRMY shows steady but slowing expansion.
Financial Health Score
ExcellentHRMY maintains a strong and stable balance sheet.
Profitability Score
ExcellentHRMY achieves industry-leading margins.
Key Financial Metrics
Is HRMY Expensive or Cheap?
P/E Ratio
HRMY trades at 14.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HRMY's PEG of -2.40 indicates potential undervaluation.
Price to Book
The market values Harmony Biosciences Holdings, Inc. at 2.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.60 times EBITDA. This signals the market has high growth expectations.
How Well Does HRMY Make Money?
Net Profit Margin
For every $100 in sales, Harmony Biosciences Holdings, Inc. keeps $16.20 as profit after all expenses.
Operating Margin
Core operations generate 21.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.19 in profit for every $100 of shareholder equity.
ROA
Harmony Biosciences Holdings, Inc. generates $11.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Harmony Biosciences Holdings, Inc. generates strong operating cash flow of $342.41M, reflecting robust business health.
Free Cash Flow
Harmony Biosciences Holdings, Inc. generates strong free cash flow of $342.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.91 in free cash annually.
FCF Yield
HRMY converts 16.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How HRMY Stacks Against Its Sector Peers
| Metric | HRMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.33 | 29.15 | Better (Cheaper) |
| ROE | 17.19% | 492.00% | Weak |
| Net Margin | 16.20% | -11540.00% (disorted) | Strong |
| Debt/Equity | 0.23 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.58 | 5.18 | Strong Liquidity |
| ROA | 11.45% | -130.00% (disorted) | Strong |
HRMY outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Harmony Biosciences Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation