Harmony Biosciences Holdings (NASDAQ:HRMY): A Prime GARP Investment with Strong Growth and a Reasonable Price

Harmony Biosciences Holdings (NASDAQ:HRMY) presents a strong case for investors using a Growth At Reasonable Price (GARP) strategy. This method looks for companies with good growth paths while keeping sensible prices, steering clear of paying too much for extreme growth or accepting low-value options. By concentrating on stocks with good growth numbers, reliable earnings, firm financial standing, and appealing prices, investors try to gain from possible increases while reducing potential losses. The “Affordable Growth” screen finds these chances by setting minimum scores across these basic areas.

Growth Path

Harmony Biosciences displays notable growth traits that are central to its investment case. The company’s past results show significant enlargement, and analyst forecasts point to continued progress in the future.

• Earnings Per Share (EPS) expanded by 49.76% over the last year, with an average yearly growth rate of 44.61% over recent years.
• Sales rose by 17.74% in the last year, backed by a very high average yearly growth rate of 160.13% over several years.
• For the future, EPS is forecast to expand at 30.22% each year, with sales anticipated to rise by 14.36% annually.

This mix of solid past results and a positive future view gives a good base for investors focused on growth. While the forecasted growth rates show a slowdown from the very high historical speed, they stay well above typical industry levels, indicating the company is moving from a high-growth stage to a more maintainable, yet still active, expansion path.

Price Assessment

Even with its notable growth story, Harmony Biosciences trades at prices that seem separate from its basic performance. The stock offers an uncommon mix of fast growth and low price multiples.

• The company’s Price/Earnings ratio of 9.56 is much lower than the industry average of 24.99 and the S&P 500’s 27.00.
• Its Price/Forward Earnings ratio of 7.12 is notably below the industry average of 39.38 and the wider market’s 22.87.
• Based on the P/E ratio, 91.15% of pharmaceutical industry companies are priced higher than HRMY.
• The Enterprise Value to EBITDA and Price/Free Cash Flow ratios are lower than 97.92% and 94.27% of industry rivals, in that order.

These price measures suggest the market might be setting a low value on Harmony’s growth possibility and operational quality. For GARP investors, this price difference makes a chance to buy a fast-growing company at a cost usually linked with slower-growth businesses.

Earnings and Financial Standing

Beyond growth and price, Harmony Biosciences shows very good operational effectiveness and balance sheet soundness. The company’s earnings measures are some of the best in its field, and its financial standing offers stability and room to maneuver.

The earnings picture is especially solid, with a Return on Invested Capital of 17.95% doing better than 95.83% of industry companies. The company holds a good Profit Margin of 23.42% and an Operating Margin of 28.72%, both putting it in the top group of pharmaceutical firms. These high-margin activities produce significant cash flow, allowing for putting money back into growth projects while keeping financial order.

From a standing perspective, Harmony shows a sound balance sheet with little debt issues. The company’s Debt to Free Cash Flow ratio of 0.67 shows it could pay back all its debt in under a year using current cash flows, doing better than 95.83% of industry rivals. With a Current Ratio of 3.84 and Quick Ratio of 3.80, the company has enough cash on hand to cover immediate needs and fund current activities without financial pressure.

Investment Points

The basic review of Harmony Biosciences shows a company that fits well with affordable growth standards. Its full basic report shows an overall rating of 8/10, with especially high scores in price (9), growth (8), earnings (8), and standing (8). This balanced quality across several basic areas is exactly what GARP investors look for—companies that are not only growing fast but also doing this from a place of financial soundness and at sensible costs.

The company’s focus on neurological treatments, including its market product WAKIX for narcolepsy and development assets for other rare neurological conditions, gives a specific market place with possibility for maintained growth. The mix of market execution, development pipeline, and financial order creates a strong profile for investors looking for growth at sensible prices.

For investors wanting to find similar affordable growth chances, more screening results can be found through this Affordable Growth stock screen.

Disclaimer: This review is based on basic data and ratings given by ChartMill.com and is for information only. It does not make up investment guidance, a suggestion to buy or sell any security, or a request to propose any deal. Investors should do their own research and talk with a qualified financial advisor before making any investment choices. Past results are not a guide to future outcomes.