Harmony Biosciences Holdings, Inc. (HRMY) stock analysis
Close on Nov 13, 2026Market cap $1.97BP/E 11.1Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Solid18 of 30 checks passed
Harmony Biosciences passes 18 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 40.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $33.76 is below our fair value estimate of $56.70.
Return on equity over 15%
Return on equity was 18.7% over the last twelve months and averaged 32.4% over five years.
Return on capital over 10%
Return on invested capital was 43.1%, above the 10% that usually covers the cost of capital.
What to watch
EPS growing under 10% a year
Diluted EPS grew -3.0% a year over the last three fiscal years.
Gross margin slipping
Gross margin was 74.0% over the last twelve months, against 77.7% a year earlier.
Net margin below its 5-year average
Net margin was 18.1% over the last twelve months, against a 5-year average of 22.7%.
No dividend
Harmony Biosciences has not paid a dividend in the last twelve months.
Valuation6/6
P/E below its 5-year median
Harmony Biosciences's P/E of 11.1 is below its own 5-year median of 13.4.
P/E below the industry
Harmony Biosciences's P/E of 11.1 is below the Drugs median of 25.0.
EV/EBITDA below its 5-year median
Harmony Biosciences's EV/EBITDA of 6.1 is below its 5-year median of 9.1.
P/B below the industry
Harmony Biosciences's price-to-book of 1.83 is below the Drugs median of 2.09.
Trading below fair value
The share price of $33.76 is below our fair value estimate of $56.70.
Margin of safety over 20%
The price is 40.5% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 25.6% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew -3.0% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 19.8% over the last twelve months; the Drugs median is 7.7%.
Guidance unchanged
The latest outlook (full-year net revenue, Nov 4, 2026) was maintained, so it neither adds nor takes away points.
Gross margin slipping
Gross margin was 74.0% over the last twelve months, against 77.7% a year earlier.
Past performance4/6
Return on equity over 15%
Return on equity was 18.7% over the last twelve months and averaged 32.4% over five years.
Return on capital over 10%
Return on invested capital was 43.1%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Harmony Biosciences's return on equity of 18.7% is above the Drugs median of -57.0%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 18.1% over the last twelve months, against a 5-year average of 22.7%.
Net margin above the industry
Harmony Biosciences's net margin of 18.1% is above the Drugs median of -53.5%.
Financial health6/6
Low debt
Debt is 13.9% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 200% five years ago to 13.9%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 217% of total debt.
Interest well covered
Operating income covers interest expense 17.0 times.
Short-term assets cover short-term debts
Current assets are 3.44 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 4.90; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Harmony Biosciences has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$56.70
The share price is 40% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 19.2× | 13.4× | 25.0× | $58.09 | 40% |
| EV/EBITDA | 13.2× | 9.1× | 17.4× | $60.57 | 35% |
| P/B | 2.9× | 3.7× | 2.1× | $53.42 | 10% |
| Earnings power | 9.7% cost of equity | – | – | $46.18 | 15% |
| Fair value | $56.70 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 13.4
- Drugs median 25.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $40.10M
- Value traded per 1% price move
- $22.61M
Downside
Medium risk
- Typical loss in a bad month
- 24.3%
- Volatility (annualized)
- 41%
- Sharpe ratio, 1 year
- -0.10
- Beta to the S&P 500 (5Y)
- 0.93
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +21.5% | +25.6% | +40.3% | – | |
| Gross profit | +20.1% | +23.7% | +38.4% | – | |
| Operating income | +9.2% | +20.2% | +65.1% | – | |
| Net income | +9.1% | -4.4% | – | – | |
| EPS, diluted | +8.0% | -3.0% | – | – | |
| Free cash flow | +59.1% | +34.1% | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 22.7% | 20.8% | |
| Return on assets | – | -13.8% | 14.0% | |
| Current ratio | – | 1.95 | 3.60 | |
| Debt to equity | – | 2.00 | 0.19 | |
| Interest coverage | – | 0.6× | 14.2× | |
| Inventory turnover | – | 11.3× | 31.6× | |
| Capex to revenue | – | 0.0% | 0.0% | |
| Diluted shares | – | 26M | 59M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Harmony Biosciences generated $1.03B from operations and spent $102.25M on capital expenditure, dividends and share buybacks. 2% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 18.3% | 0.76× | 1.48× | 20.8% |
| FY2024 | 20.4% | 0.79× | 1.61× | 25.8% |
| FY2023 | 22.1% | 0.78× | 1.71× | 29.6% |
| FY2022 | 41.4% | 0.79× | 1.88× | 61.6% |
| FY2021 | 11.3% | 0.71× | 3.03× | 24.4% |
| FY2020 | -23.1% | 0.60× | -1.64× | 22.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$158.69M
- Cash generatingOperating cash flow above zero$348.20M
- Return on assets improvedROA up on the prior year17.9% → 15.9%
- Earnings backed by cashOperating cash flow above net income$348.20M vs $158.69M
- Less leverageLong-term debt to assets fell16.3% → 11.3%
- Better liquidityCurrent ratio rose3.31 → 3.60
- No dilutionShare count did not rise58M → 59M
- Gross margin improvedGross margin up on the prior year78.06% → 77.16%
- More efficientAsset turnover rose0.88 → 0.87
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