(HRMY) Harmony Biosciences Holdings - Overview
Sector: Healthcare | Industry: Biotechnology | Exchange: NASDAQ (USA) | Market Cap: 1.727m USD | Total Return: -15.2% in 12m
Industry Rotation: -18.1
Avg Turnover: 22.3M
EPS Trend: 10.4%
Qual. Beats: 0
Rev. Trend: 96.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Harmony Biosciences Holdings (HRMY) is a commercial-stage pharmaceutical company specializing in rare neurological disorders. Its primary revenue driver is WAKIX (pitolisant), a selective histamine 3 (H3) receptor antagonist designed to treat narcolepsy. The company operates within the orphan drug sector, which often benefits from extended market exclusivity and high barriers to entry due to the specialized nature of the patient populations served.
The companys clinical pipeline focuses on expanding the applications of pitolisant to conditions such as Prader-Willi Syndrome and Myotonic Dystrophy. Beyond its core asset, Harmony is developing orexin 2 receptor agonists and serotonin receptor agonists to address Fragile X Syndrome and various forms of refractory epilepsy. This business model relies heavily on a hub-and-spoke R&D strategy, where a central validated molecule is tested across multiple orphan indications to maximize lifecycle value.
Reviewing the historical performance trends on ValueRay can provide deeper context on the companys valuation relative to its peers. Harmony Biosciences is headquartered in Plymouth Meeting, Pennsylvania, and has been operating under its current name since 2020.
- WAKIX sales growth in narcolepsy market drives core revenue expansion
- Phase 3 clinical trial results for Prader-Willi Syndrome impact valuation
- Pipeline diversification through orphan drug acquisitions reduces single-product reliance
- Patent litigation and generic competition risks threaten long-term Pitolisant exclusivity
- R&D expenditure for orexin-2 receptor agonists influences quarterly earnings margins
| Net Income: 145.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.27 > 0.02 and ΔFCF/TA 5.90 > 1.0 |
| NWC/Revenue: 62.45% < 20% (prev 62.77%; Δ -0.33% < -1%) |
| CFO/TA 0.27 > 3% & CFO 342.0m > Net Income 145.6m |
| Net Debt (-382.9m) to EBITDA (233.3m): -1.64 < 3 |
| Current Ratio: 3.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (58.8m) vs 12m ago 0.43% < -2% |
| Gross Margin: 76.55% > 18% (prev 0.78%; Δ 7.58k% > 0.5%) |
| Asset Turnover: 77.26% > 50% (prev 70.57%; Δ 6.70% > 0%) |
| Interest Coverage Ratio: 14.81 > 6 (EBITDA TTM 233.3m / Interest Expense TTM 14.0m) |
| A: 0.44 (Total Current Assets 778.8m - Total Current Liabilities 217.3m) / Total Assets 1.27b |
| B: 0.15 (Retained Earnings 193.4m / Total Assets 1.27b) |
| C: 0.18 (EBIT TTM 208.0m / Avg Total Assets 1.16b) |
| D: 0.53 (Book Value of Equity 193.0m / Total Liabilities 361.5m) |
| Altman-Z'' Score: 5.15 = AAA |
| DSRI: 0.85 (Receivables 108.2m/106.0m, Revenue 899.1m/744.9m) |
| GMI: 1.02 (GM 76.55% / 78.34%) |
| AQI: 0.99 (AQ_t 0.38 / AQ_t-1 0.39) |
| SGI: 1.21 (Revenue 899.1m / 744.9m) |
| TATA: -0.15 (NI 145.6m - CFO 342.0m) / TA 1.27b) |
| Beneish M-Score: -3.15 (Cap -4..+1) = AA |
Over the past week, the price has changed by +0.96%, over one month by +3.08%, over three months by -11.49% and over the past year by -15.23%.
- StrongBuy: 5
- Buy: 3
- Hold: 0
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 44.4 | 45.7% |
P/E Forward = 9.4518
P/S = 1.9207
P/B = 1.897
Revenue TTM = 899.1m USD
EBIT TTM = 208.0m USD
EBITDA TTM = 233.3m USD
Long Term Debt = 138.8m USD (from longTermDebt, last quarter)
Short Term Debt = 63.2m USD (from shortTermDebt, last quarter)
Debt = 206.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -382.9m USD (from netDebt column, last quarter)
Enterprise Value = 1.29b USD (1.73b + Debt 206.5m - CCE 640.9m)
Interest Coverage Ratio = 14.81 (Ebit TTM 208.0m / Interest Expense TTM 14.0m)
EV/FCF = 3.78x (Enterprise Value 1.29b / FCF TTM 341.8m)
FCF Yield = 26.44% (FCF TTM 341.8m / Enterprise Value 1.29b)
FCF Margin = 38.01% (FCF TTM 341.8m / Revenue TTM 899.1m)
Net Margin = 16.20% (Net Income TTM 145.6m / Revenue TTM 899.1m)
Gross Margin = 76.55% ((Revenue TTM 899.1m - Cost of Revenue TTM 210.9m) / Revenue TTM)
Gross Margin QoQ = 79.33% (prev 71.88%)
Tobins Q-Ratio = 1.02 (Enterprise Value 1.29b / Total Assets 1.27b)
Interest Expense / Debt = 1.57% (Interest Expense 3.23m / Debt 206.5m)
Taxrate = 18.14% (7.20m / 39.7m)
NOPAT = 170.3m (EBIT 208.0m * (1 - 18.14%))
Current Ratio = 3.58 (Total Current Assets 778.8m / Total Current Liabilities 217.3m)
Debt / Equity = 0.23 (Debt 206.5m / totalStockholderEquity, last quarter 910.3m)
Debt / EBITDA = -1.64 (Net Debt -382.9m / EBITDA 233.3m)
Debt / FCF = -1.12 (Net Debt -382.9m / FCF TTM 341.8m)
Total Stockholder Equity = 847.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 12.51% (Net Income 145.6m / Total Assets 1.27b)
RoE = 17.19% (Net Income TTM 145.6m / Total Stockholder Equity 847.2m)
RoCE = 21.10% (EBIT 208.0m / Capital Employed (Equity 847.2m + L.T.Debt 138.8m))
RoIC = 16.81% (NOPAT 170.3m / Invested Capital 1.01b)
WACC = 7.65% (E(1.73b)/V(1.93b) * Re(8.41%) + D(206.5m)/V(1.93b) * Rd(1.57%) * (1-Tc(0.18)))
Discount Rate = 8.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.67 | Cagr: -0.06%
[DCF] Terminal Value 82.75% ; FCFF base≈293.6m ; Y1≈362.2m ; Y5≈618.0m
[DCF] Fair Price = 204.4 (EV 11.45b - Net Debt -382.9m = Equity 11.83b / Shares 57.9m; r=7.65% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 10.39 | EPS CAGR: 20.54% | SUE: -0.54 | # QB: 0
Revenue Correlation: 96.21 | Revenue CAGR: 20.50% | SUE: -0.70 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.10 | Chg30d=-3.90% | Revisions=+0% | Analysts=3
EPS next Quarter (2026-09-30): EPS=1.22 | Chg30d=-5.26% | Revisions=+0% | Analysts=3
EPS current Year (2026-12-31): EPS=4.39 | Chg30d=-8.36% | Revisions=-33% | GrowthEPS=+22.0% | GrowthRev=+16.8%
EPS next Year (2027-12-31): EPS=5.58 | Chg30d=-3.63% | Revisions=+14% | GrowthEPS=+27.1% | GrowthRev=+13.2%
[Analyst] Revisions Ratio: -33%