NasdaqCM:HROW

Stock Analysis Report

Executive Summary

Harrow Health, Inc., together with its subsidiaries, develops, produces, and sells medications for unmet needs primarily in the United States.

Snowflake

Fundamentals

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Harrow Health's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

HROW

2.8%

US Pharmaceuticals

1.8%

US Market


1 Year Return

57.7%

HROW

-6.5%

US Pharmaceuticals

7.3%

US Market

Return vs Industry: HROW exceeded the US Pharmaceuticals industry which returned -6.5% over the past year.

Return vs Market: HROW exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

HROWIndustryMarket
7 Day0.4%2.8%1.8%
30 Day-9.3%1.6%-0.7%
90 Day-32.9%0.01%0.06%
1 Year57.7%57.7%-4.3%-6.5%9.7%7.3%
3 Year75.6%75.6%19.4%11.0%46.3%36.9%
5 Year-40.7%-40.7%25.5%12.3%64.5%46.5%

Price Volatility Vs. Market

How volatile is Harrow Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Harrow Health undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HROW ($5.25) is trading below our estimate of fair value ($76.68)

Significantly Undervalued: HROW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HROW is good value based on its PE Ratio (5.1x) compared to the Pharmaceuticals industry average (16.2x).

PE vs Market: HROW is good value based on its PE Ratio (5.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HROW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HROW is overvalued based on its PB Ratio (3.8x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Harrow Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HROW's earnings are forecast to decline over the next 3 years (-11.7% per year).

Earnings vs Market: HROW's earnings are forecast to decline over the next 3 years (-11.7% per year).

High Growth Earnings: HROW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HROW's revenue (21.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HROW's revenue (21.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Harrow Health performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HROW has become profitable over the past 5 years, growing earnings by 34.4% per year.

Accelerating Growth: HROW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HROW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (24.3%).


Return on Equity

High ROE: HROW's Return on Equity (70.1%) is considered outstanding.


Return on Assets

ROA vs Industry: HROW has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: HROW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Harrow Health's financial position?


Financial Position Analysis

Short Term Liabilities: HROW's short term assets ($38.1M) exceeds its short term liabilities ($9.9M)

Long Term Liabilities: HROW's short term assets (38.1M) exceeds its long term liabilities (20.3M)


Debt to Equity History and Analysis

Debt Level: HROW's debt to equity ratio (39.3%) is considered satisfactory

Reducing Debt: HROW's debt to equity ratio has increased from 0% to 39.3% over the past 5 years.

Debt Coverage: HROW's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if HROW's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: HROW has a high level of physical assets or inventory.

Debt Coverage by Assets: HROW's debt is covered by short term assets (assets are 2.773290x debt).


Next Steps

Dividend

What is Harrow Health's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HROW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Harrow Health's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Mark Baum (46yo)

7.5yrs

Tenure

US$1,057,126

Compensation

Mr. Mark L. Baum, J.D. is the Founder at Harrow Health, Inc. (formerly known as Imprimis Pharmaceuticals, Inc.) and has been its Chief Executive Officer since April 1, 2012. Mr. Baum served as the Chief Ex ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD1.06M) is about average for companies of similar size in the US market ($USD491.38K).

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


Management Age and Tenure

1.5yrs

Average Tenure

46yo

Average Age

Experienced Management: HROW's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

70yo

Average Age

Experienced Board: HROW's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Mark Baum (46yo)

    Founder

    • Tenure: 7.5yrs
    • Compensation: US$1.06m
  • David Moufarrège

    Vice President of Technology

    • Tenure: 2.4yrs
  • John Saharek (59yo)

    President of ImprimisRx

    • Tenure: 0.7yrs
    • Compensation: US$580.06k
  • Andrew Boll (37yo)

    CFO & Corporate Secretary

    • Tenure: 4.7yrs
    • Compensation: US$551.20k
  • Dennis Saadeh

    Chief of Formulation Strategy

    • Tenure: 0.3yrs
  • Larry Dillaha

    Chief Medical Officer

    • Tenure: 0.3yrs

Board Members

  • Richard Lindstrom (71yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$254.87k
  • Steve Austin (67yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$134.00k
  • Mark Baum (46yo)

    Founder

    • Tenure: 7.5yrs
    • Compensation: US$1.06m
  • Anthony Principi (75yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$130.50k
  • Robert Kammer (70yo)

    Independent Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: US$148.00k

Company Information

Harrow Health, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harrow Health, Inc.
  • Ticker: HROW
  • Exchange: NasdaqCM
  • Founded: 1998
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$132.121m
  • Shares outstanding: 25.17m
  • Website: https://www.harrowinc.com

Number of Employees


Location

  • Harrow Health, Inc.
  • 12264 El Camino Real
  • Suite 350
  • San Diego
  • California
  • 92130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HROWNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 2007
3IPDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2007

Biography

Harrow Health, Inc., together with its subsidiaries, develops, produces, and sells medications for unmet needs primarily in the United States. The company primarily provides ophthalmology based formulation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:06
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.