NasdaqGM:HROW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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

Stable Share Price: HROW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

HROW

-1.1%

US Pharmaceuticals

-0.4%

US Market


1 Year Return

-3.6%

HROW

10.8%

US Pharmaceuticals

18.3%

US Market

Return vs Industry: HROW underperformed the US Pharmaceuticals industry which returned 10.8% over the past year.

Return vs Market: HROW underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

HROWIndustryMarket
7 Day-11.8%-1.1%-0.4%
30 Day-12.3%1.2%6.6%
90 Day-12.3%0.3%8.6%
1 Year-3.6%-3.6%13.7%10.8%21.0%18.3%
3 Year228.0%228.0%25.5%16.2%42.1%32.7%
5 Year-33.9%-33.9%39.6%23.3%85.6%64.7%

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

Below Fair Value: HROW ($5.15) is trading below our estimate of fair value ($11.26)

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


Price To Earnings Ratio

PE vs Industry: HROW is unprofitable, so we can't compare its PE Ratio to the US Pharmaceuticals industry average.

PE vs Market: HROW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HROW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HROW is overvalued based on its PB Ratio (8.4x) compared to the US Pharmaceuticals industry average (3x).


Next Steps

Future Growth

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

127.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HROW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HROW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HROW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HROW's revenue (25.5% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: HROW's revenue (25.5% 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 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?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HROW is currently unprofitable.

Growing Profit Margin: HROW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HROW is unprofitable, but has reduced losses over the past 5 years at a rate of 27.9% per year.

Accelerating Growth: Unable to compare HROW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HROW is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (12.6%).


Return on Equity

High ROE: HROW has a negative Return on Equity (-144.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is Harrow Health's financial position?


Financial Position Analysis

Short Term Liabilities: HROW's short term assets ($30.4M) exceed its short term liabilities ($13.1M).

Long Term Liabilities: HROW's short term assets ($30.4M) exceed its long term liabilities ($21.0M).


Debt to Equity History and Analysis

Debt Level: HROW's debt to equity ratio (114%) is considered high.

Reducing Debt: HROW's debt to equity ratio has reduced from 166.5% to 114% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if HROW has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HROW has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HROW'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 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

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

1.7yrs

Average management tenure


CEO

Mark Baum (47 yo)

8.5yrs

Tenure

US$1,377,012

Compensation

Mr. Mark L. Baum, J.D. co-founded 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 Executive ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.38M) is above average for companies of similar size in the US market ($USD579.76K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Baum
CEO & Director8.5yrsUS$1.38m2.49%
$ 3.3m
Andrew Boll
CFO & Corporate Secretary5.67yrsUS$1.05m0.48%
$ 633.5k
John Saharek
President of ImprimisRx1.67yrsUS$963.80k0.12%
$ 154.5k
David Moufarrège
Vice President of Technology3.42yrsno datano data
Dennis Saadeh
Chief of Formulation Strategy1.33yrsno datano data
Larry Dillaha
Chief Medical Officer1.33yrsno datano data
Andrew Livingston
Chief Innovation Officer0.50yrno datano data

1.7yrs

Average Tenure

47yo

Average Age

Experienced Management: HROW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Baum
CEO & Director8.5yrsUS$1.38m2.49%
$ 3.3m
Richard Lindstrom
Director5.75yrsUS$172.61k0.78%
$ 1.0m
Teresa Sparks
Independent Director0.58yrno datano data
Robert Kammer
Independent Chairman of the Board8.5yrsUS$151.50k3.03%
$ 4.0m
R. Van Horn
Independent Director0.083yrno datano data

5.8yrs

Average Tenure

53yo

Average Age

Experienced Board: HROW's board of directors are considered experienced (5.8 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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Harrow Health, Inc.
  • Ticker: HROW
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$132.096m
  • Shares outstanding: 25.65m
  • 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
HROWNasdaqGM (Nasdaq Global 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 Analysis2020/10/25 00:05
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.