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HRMY

Harmony Biosciences Holdings NasdaqGM:HRMY Stock Report

Last Price

US$45.40

Market Cap

US$2.7b

7D

7.9%

1Y

22.1%

Updated

03 Oct, 2022

Data

Company Financials +
HRMY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance5/6
Financial Health5/6
Dividends0/6

HRMY Stock Overview

Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, develops and commercializes therapies for patients with rare neurological disorders in the United States.

Harmony Biosciences Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Harmony Biosciences Holdings
Historical stock prices
Current Share PriceUS$45.40
52 Week HighUS$57.13
52 Week LowUS$31.54
Beta0.45
1 Month Change2.34%
3 Month Change-13.77%
1 Year Change22.11%
3 Year Changen/a
5 Year Changen/a
Change since IPO22.67%

Recent News & Updates

Sep 23

Harmony Biosciences: In Harmony

Summary Harmony Biosciences has seen a strong performance of its WAKIX drug since it went public in 2020. This run up made that shares have done quite alright, vastly outperforming most IPOs of the time. After a very strong second quarter, I like the company a lot despite the price of its success, namely dependency on a single drug. I have been very appreciative on shares of Harmony Biosciences (HRMY) as I believed that shares looked very compelling in May 2021. The company has seen its IPO in August 2020, at a time when many companies went public, as it has seen initial momentum offset by a retreat in the share price. This dip early in 2021 looked very compelling to me as I regarded Harmony to be a quality name, being sold off indiscriminately at the time. Disorders Harmony is a commercial stage pharmaceutical company which focuses on the development and commercialization of neurological disorder therapies. The company obtained approval for WAKIX in August 2019, designed to increase histamine levels which provides signals to the brain. This medication is approved for excessive daytime sleepiness (also known as EDS) and commercial launch followed in November that year, with label expansion anticipated in the years following. The EDS market is very substantial as more than 150,000 Americans suffer from this indication, translating into a $2 billion market potential, with no dedicated drugs designed for this indication, making that patients often resort too well known generic and alternative drugs like Ritalin, Xyrem and Adderall, taking the dependency risks and side effects for granted, not to mention a lack of efficacy. The company went public at $24 and shares rose to $48 soon thereafter, as that move granted the company a $3.0 billion operating asset valuation, a huge number for a business which posted $6 million in product sales in November and December 2019. The run rate in sales growth was impressive. First quarter 2020 sales rose to nearly $20 million, to double to $38 million in the second quarter. This $150 million run rate worked down to 20 times sales multiple at the time of the IPO, as growth was spectacular, while the company was profitable already. WAKIX was furthermore approved by the FDA to treat cataplexy in October as third quarter sales were reported at $45 million! With shares falling to the $30 mark, reducing the valuation to about $2.0 billion, the combination of the modest pullback in the price and strong operating performance made me a buyer at those levels even as the strongest momentum was already a thing of the past. Fourth quarter sales rose to $56 million and change, as first quarter sales came in just below $60 million, despite the wider approval for WAKIX. With 59 million shares translating into a $1.6 billion valuation at $27 in spring of 2021, I was pleased to see a quarter of a billion run rate in terms of sales. Furthermore, a first quarter operating earnings number of nearly $15 million was pretty solid, translating into after-tax profit potential of around $0.70 per share by my estimates. Delivering Having initiated quite aggressively at $27 in spring of 2021, we have seen solid results in terms of the business, but moreover share price performance. Shares recently hit a high of $57 and even at $43 now, these represent meaningful gains, certainly in relation to the wider market. These solid share price performance have been backed up by strong results. Third quarter sales in 2021 rose 77% to nearly $81 million and in February of this year the company ended the year with a $91 million quarterly revenue number. On annual sales of $305 million, the company posted a GAAP operating profit of $87 million, as net earnings were hurt by debt extinguishment costs and some interest rate charges. With the company operating with a net cash position, the earnings power is very substantial. Assuming no interest rate expenses are due over time and assuming a 25% tax rate, earnings power has surpassed the dollar per share mark already, with the run rate in the fourth quarter being far higher already. First quarter sales came in at $85 million, up meaningfully year-over-year, but down on a sequential basis, even as total patient which use WAKIX were up sequentially. Quarterly operating earnings of $27 million reveals potential after-tax earnings at a run rate of more than $1.30 per share, as a modest net cash position was maintained. Second quarter sales were very strong at $107 million, with many new patients on WAKIX as operating earnings rose to $33 million, despite much more aggressive investments into R&D to further grow the pipeline over time. At this run rate the company is comfortably posting sales in excess of $400 million and earnings above $1.60 per share, as a modest net cash position is slowly starting to grow.

Aug 05
We Ran A Stock Scan For Earnings Growth And Harmony Biosciences Holdings (NASDAQ:HRMY) Passed With Ease

We Ran A Stock Scan For Earnings Growth And Harmony Biosciences Holdings (NASDAQ:HRMY) Passed With Ease

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Aug 02

Harmony Biosciences Non-GAAP EPS of $0.57 misses by $0.06, revenue of $107M beats by $6.25M

Harmony Biosciences press release (NASDAQ:HRMY): Q2 Non-GAAP EPS of $0.57 misses by $0.06. Revenue of $107M (+44.9% Y/Y) beats by $6.25M.

Shareholder Returns

HRMYUS PharmaceuticalsUS Market
7D7.9%1.2%1.0%
1Y22.1%4.4%-20.0%

Return vs Industry: HRMY exceeded the US Pharmaceuticals industry which returned 3.2% over the past year.

Return vs Market: HRMY exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is HRMY's price volatile compared to industry and market?
HRMY volatility
HRMY Average Weekly Movement6.4%
Pharmaceuticals Industry Average Movement11.2%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: HRMY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HRMY's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017180John Jacobshttps://www.harmonybiosciences.com

Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, develops and commercializes therapies for patients with rare neurological disorders in the United States. Its product, WAKIX is a medication for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020.

Harmony Biosciences Holdings Fundamentals Summary

How do Harmony Biosciences Holdings's earnings and revenue compare to its market cap?
HRMY fundamental statistics
Market CapUS$2.69b
Earnings (TTM)US$58.11m
Revenue (TTM)US$364.29m

46.2x

P/E Ratio

7.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRMY income statement (TTM)
RevenueUS$364.29m
Cost of RevenueUS$66.06m
Gross ProfitUS$298.23m
Other ExpensesUS$240.12m
EarningsUS$58.11m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.98
Gross Margin81.87%
Net Profit Margin15.95%
Debt/Equity Ratio77.8%

How did HRMY perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is HRMY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HRMY?

Other financial metrics that can be useful for relative valuation.

HRMY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.2x
Enterprise Value/EBITDA20x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does HRMY's PE Ratio compare to its peers?

HRMY PE Ratio vs Peers
The above table shows the PE ratio for HRMY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average40.1x
CORT Corcept Therapeutics
24.8x29.7%US$2.8b
BHC Bausch Health Companies
59x167.7%US$2.5b
PBH Prestige Consumer Healthcare
12.2x6.8%US$2.5b
PCRX Pacira BioSciences
64.3x15.8%US$2.5b
HRMY Harmony Biosciences Holdings
46.2x48.7%US$2.7b

Price-To-Earnings vs Peers: HRMY is expensive based on its Price-To-Earnings Ratio (46.2x) compared to the peer average (40.1x).


Price to Earnings Ratio vs Industry

How does HRMY's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Earnings vs Industry: HRMY is expensive based on its Price-To-Earnings Ratio (46.2x) compared to the US Pharmaceuticals industry average (12.4x)


Price to Earnings Ratio vs Fair Ratio

What is HRMY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HRMY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.2x
Fair PE Ratio37.1x

Price-To-Earnings vs Fair Ratio: HRMY is expensive based on its Price-To-Earnings Ratio (46.2x) compared to the estimated Fair Price-To-Earnings Ratio (37.1x).


Share Price vs Fair Value

What is the Fair Price of HRMY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HRMY ($45.4) is trading below our estimate of fair value ($352.68)

Significantly Below Fair Value: HRMY is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Harmony Biosciences Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


48.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRMY's forecast earnings growth (48.7% per year) is above the savings rate (1.9%).

Earnings vs Market: HRMY's earnings (48.7% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: HRMY's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HRMY's revenue (31.5% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: HRMY's revenue (31.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HRMY's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Harmony Biosciences Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


89.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HRMY has a large one-off loss of $26.1M impacting its June 30 2022 financial results.

Growing Profit Margin: HRMY's current net profit margins (16%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: HRMY has become profitable over the past 5 years, growing earnings by 89.1% per year.

Accelerating Growth: HRMY's earnings growth over the past year (238%) exceeds its 5-year average (89.1% per year).

Earnings vs Industry: HRMY earnings growth over the past year (238%) exceeded the Pharmaceuticals industry 5%.


Return on Equity

High ROE: HRMY's Return on Equity (23.6%) is considered high.


Discover strong past performing companies

Financial Health

How is Harmony Biosciences Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HRMY's short term assets ($322.7M) exceed its short term liabilities ($65.8M).

Long Term Liabilities: HRMY's short term assets ($322.7M) exceed its long term liabilities ($192.8M).


Debt to Equity History and Analysis

Debt Level: HRMY has more cash than its total debt.

Reducing Debt: Insufficient data to determine if HRMY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HRMY's debt is well covered by operating cash flow (68.1%).

Interest Coverage: HRMY's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


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Dividend

What is Harmony Biosciences Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Harmony Biosciences Holdings Dividend Yield vs Market
How does Harmony Biosciences Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Harmony Biosciences Holdings)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Pharmaceuticals)2.6%
Analyst forecast in 3 Years (Harmony Biosciences Holdings)0%

Notable Dividend: Unable to evaluate HRMY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HRMY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HRMY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HRMY's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HRMY has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

John Jacobs (55 yo)

4.33yrs

Tenure

US$885,554

Compensation

Mr. John Charles Jacobs, MBA, serves as President, Chief Executive Officer and Director of Harmony Biosciences, LLC. He serves as Director at Life Sciences Pennsylvania since May 6, 2021. He served as Chai...


CEO Compensation Analysis

John Jacobs's Compensation vs Harmony Biosciences Holdings Earnings
How has John Jacobs's remuneration changed compared to Harmony Biosciences Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$58m

Mar 31 2022n/an/a

US$49m

Dec 31 2021US$886kUS$489k

US$35m

Sep 30 2021n/an/a

US$12m

Jun 30 2021n/an/a

US$17m

Mar 31 2021n/an/a

-US$7m

Dec 31 2020US$3mUS$473k

-US$64m

Sep 30 2020n/an/a

-US$110m

Jun 30 2020n/an/a

-US$146m

Mar 31 2020n/an/a

-US$165m

Dec 31 2019US$846kUS$454k

-US$187m

Compensation vs Market: John's total compensation ($USD885.55K) is below average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HRMY's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: HRMY's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGM:HRMY Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
10 Aug 22SellUS$31,106,469HBM Partners Ltd.Company578,552US$53.94
08 Aug 22SellUS$13,183,300Vivo Capital, LLCCompany250,000US$53.56
05 Aug 22SellUS$3,827,163HBM Partners Ltd.Company72,586US$52.90
02 Aug 22SellUS$4,147,961Vivo Capital, LLCCompany75,117US$55.22
18 Jul 22SellUS$2,212,402Vivo Capital, LLCCompany40,087US$55.19
13 Jul 22SellUS$317,746Vivo Capital, LLCCompany5,773US$55.04
11 Jul 22SellUS$592,810Vivo Capital, LLCCompany10,768US$55.07
07 Jul 22SellUS$16,657,443Vivo Capital, LLCCompany300,741US$56.01
01 Jul 22SellUS$758,840Vivo Capital, LLCCompany14,571US$52.20
28 Jun 22SellUS$5,256,938Vivo Capital, LLCCompany100,463US$52.37
11 Mar 22SellUS$12,919,670HBM Partners Ltd.Company285,587US$45.80
03 Mar 22SellUS$24,227,112HBM Partners Ltd.Company596,428US$41.01
10 Dec 21SellUS$1,093,148HBM Partners Ltd.Company27,268US$40.09
17 Nov 21SellUS$2,881,693HBM Partners Ltd.Company69,268US$42.08

Ownership Breakdown

What is the ownership structure of HRMY?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders251,9240.4%
Private Companies10,651,12017.3%
VC/PE Firms17,280,38428.1%
Institutions33,294,20054.2%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Top 25 shareholders own 89.57% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
18.96%
Valor Management Corp.
11,218,033$509.3m0%95.45%
18%
Marshman Fund Trust II
10,651,120$483.6m0%no data
9.17%
FMR LLC
5,426,597$246.4m10.81%0.02%
6.72%
BlackRock, Inc.
3,972,879$180.4m3.65%no data
5.16%
Vivo Capital, LLC
3,050,261$138.5m-25.49%12.1%
5.09%
HBM Partners Ltd.
3,012,090$136.7m-17.77%13.62%
5.01%
The Vanguard Group, Inc.
2,964,498$134.6m9.69%no data
2.45%
venBio LLC
1,448,720$65.8m-6.2%14.19%
2.41%
Janus Henderson Group plc
1,425,168$64.7m-11.2%0.04%
1.75%
Adage Capital Management, L.P.
1,034,450$47.0m-8.63%0.11%
1.6%
State Street Global Advisors, Inc.
944,335$42.9m14.03%no data
1.41%
Polar Capital Holdings plc
831,325$37.7m51.15%0.2%
1.19%
Bellevue Asset Management AG
702,068$31.9m461.83%0.35%
1.13%
Ashford Capital Management Inc
667,248$30.3m1.12%4.36%
1.11%
American Century Investment Management Inc
655,946$29.8m15.83%0.02%
1.07%
Pivotal BioVenture Partners LLC
635,978$28.9m-17.27%6.08%
1.07%
Macquarie Investment Management Business Trust
630,211$28.6m74.51%0.03%
0.96%
Blackstone Life Sciences
568,182$25.8m0%15.88%
0.83%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
493,216$22.4m22.97%0.01%
0.81%
Blackstone Inc.
480,769$21.8m0%0.06%
0.79%
Geode Capital Management, LLC
468,819$21.3m6.16%no data
0.77%
Dimensional Fund Advisors LP
457,688$20.8m32.26%0.01%
0.76%
Wellington Management Group LLP
450,058$20.4m161.05%no data
0.7%
Perceptive Advisors LLC
411,804$18.7m0%0.55%
0.65%
Massachusetts Financial Services Company
386,912$17.6m-0.73%no data

Company Information

Harmony Biosciences Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Harmony Biosciences Holdings, Inc.
  • Ticker: HRMY
  • Exchange: NasdaqGM
  • Founded: 2017
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$2.686b
  • Shares outstanding: 59.16m
  • Website: https://www.harmonybiosciences.com

Number of Employees


Location

  • Harmony Biosciences Holdings, Inc.
  • 630 West Germantown Pike
  • Suite 215
  • Plymouth Meeting
  • Pennsylvania
  • 19462
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRMYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.