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Harrow, Inc. (HROW) stock analysis

HROWNasdaqPharmaceutical PreparationsFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 9, 2026Score 6/30
$29.37−0.99 (-3.26%)

Close on Nov 11, 2026Market cap $1.10BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth3Performance2Health1Dividend0

Weak6 of 30 checks passed

Harrow passes 6 of the 30 checks behind our score; 13 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
0/6
Growth
3/6
Past performance
2/6
Financial health
1/6
Dividend
0/6

What stands out

  • Revenue growing 10%+ a year

    Revenue grew 45.4% a year over the last three fiscal years.

  • Guidance raised

    Harrow raised its second half of 2026 revenue outlook on Mar 2, 2026.

  • Growing faster than the industry

    Revenue grew 21.3% over the last twelve months; the Drugs median is 8.0%.

  • Net margin above its 5-year average

    Net margin was -9.4% over the last twelve months, against a 5-year average of -14.0%.

What to watch

  • Return on equity under 15%

    Return on equity was -74.8% over the last twelve months and averaged -49.8% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -2.1%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 1003% of shareholders' equity, above the 40% we consider low.

  • Interest not well covered

    Operating income covers interest expense -0.3 times; we look for at least 5.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Harrow's price-to-book of 37.72 is above the Drugs median of 2.29.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth3/6

  • Revenue growing 10%+ a year

    Revenue grew 45.4% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 21.3% over the last twelve months; the Drugs median is 8.0%.

  • Guidance raised

    Harrow raised its second half of 2026 revenue outlook on Mar 2, 2026.

  • Gross margin slipping

    Gross margin was 73.5% over the last twelve months, against 74.6% a year earlier.

Past performance2/6

  • Return on equity under 15%

    Return on equity was -74.8% over the last twelve months and averaged -49.8% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -2.1%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Harrow's return on equity of -74.8% is below the Drugs median of -58.9%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -9.4% over the last twelve months, against a 5-year average of -14.0%.

  • Net margin above the industry

    Harrow's net margin of -9.4% is above the Drugs median of -53.0%.

Financial health1/6

  • High debt

    Debt is 1003% of shareholders' equity, above the 40% we consider low.

  • Debt rising against equity

    Debt to equity rose from 45.5% five years ago to 1003%.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals -6.5% of total debt; we look for at least 20%.

  • Interest not well covered

    Operating income covers interest expense -0.3 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 2.29 times current liabilities.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.03; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Harrow 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.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Harrow. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • EV/EBITDA at month end
  • Own 5-year median 91.6
  • Drugs median 17.1

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
$20.05M
Value traded per 1% price move
$8.05M

Downside

High risk

Typical loss in a bad month
33.3%
Volatility (annualized)
64%
Sharpe ratio, 1 year
-0.29
Beta to the S&P 500 (5Y)
1.36

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

75.1%+4.6 pts over 5 years

Operating margin

11.2%+10.4 pts over 5 years

Net margin

-1.9%+5.0 pts over 5 years

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