Harmony Biosciences Net Income vs. Current Valuation

HRMY Stock  USD 32.71  0.77  2.30%   
Based on Harmony Biosciences' profitability indicators, Harmony Biosciences Holdings is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Harmony Biosciences' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2019-03-31
Previous Quarter
11.6 M
Current Value
46.1 M
Quarterly Volatility
34 M
 
Covid
Operating Cash Flow Sales Ratio is likely to rise to 0.40 in 2024, whereas Price To Sales Ratio is likely to drop 3.14 in 2024. At this time, Harmony Biosciences' Net Income Per E B T is fairly stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.640.7917
Significantly Down
Pretty Stable
For Harmony Biosciences profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Harmony Biosciences to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Harmony Biosciences Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Harmony Biosciences's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Harmony Biosciences Holdings over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Harmony Biosciences. If investors know Harmony will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Harmony Biosciences listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.254
Earnings Share
2.11
Revenue Per Share
11.923
Quarterly Revenue Growth
0.161
Return On Assets
0.1285
The market value of Harmony Biosciences is measured differently than its book value, which is the value of Harmony that is recorded on the company's balance sheet. Investors also form their own opinion of Harmony Biosciences' value that differs from its market value or its book value, called intrinsic value, which is Harmony Biosciences' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Harmony Biosciences' market value can be influenced by many factors that don't directly affect Harmony Biosciences' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Harmony Biosciences' value and its price as these two are different measures arrived at by different means. Investors typically determine if Harmony Biosciences is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Harmony Biosciences' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Harmony Biosciences Current Valuation vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Harmony Biosciences's current stock value. Our valuation model uses many indicators to compare Harmony Biosciences value to that of its competitors to determine the firm's financial worth.
Harmony Biosciences Holdings is one of the top stocks in net income category among its peers. It is rated below average in current valuation category among its peers reporting about  13.05  of Current Valuation per Net Income. At this time, Harmony Biosciences' Net Income is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Harmony Biosciences' earnings, one of the primary drivers of an investment's value.

Harmony Current Valuation vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Harmony Biosciences

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
128.85 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Harmony Biosciences

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.68 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Harmony Current Valuation vs Competition

Harmony Biosciences Holdings is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 43.15 Billion. Harmony Biosciences holds roughly 1.68 Billion in current valuation claiming about 4% of equities under Health Care industry.

Harmony Biosciences Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Harmony Biosciences, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Harmony Biosciences will eventually generate negative long term returns. The profitability progress is the general direction of Harmony Biosciences' change in net profit over the period of time. It can combine multiple indicators of Harmony Biosciences, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeK2.1 K
Net Interest Income-11.9 M-12.5 M
Operating Income192 M201.6 M
Net Income From Continuing Ops150.8 M158.3 M
Income Before Tax173.4 M182.1 M
Total Other Income Expense Net-18.6 M-19.6 M
Net Income Applicable To Common Shares208.7 M219.1 M
Net Income128.9 M135.3 M
Income Tax Expense44.5 M46.8 M
Non Operating Income Net Other194.3 K204.1 K
Interest Income14.7 M15.5 M
Change To Netincome-52.4 M-49.8 M
Net Income Per Share 2.17  2.28 
Income Quality 1.70  0.92 
Net Income Per E B T 0.74  1.29 

Harmony Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Harmony Biosciences. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Harmony Biosciences position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Harmony Biosciences' important profitability drivers and their relationship over time.

Use Harmony Biosciences in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Harmony Biosciences position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Harmony Biosciences will appreciate offsetting losses from the drop in the long position's value.

Harmony Biosciences Pair Trading

Harmony Biosciences Holdings Pair Trading Analysis

The ability to find closely correlated positions to Harmony Biosciences could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Harmony Biosciences when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Harmony Biosciences - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Harmony Biosciences Holdings to buy it.
The correlation of Harmony Biosciences is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Harmony Biosciences moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Harmony Biosciences moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Harmony Biosciences can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Harmony Biosciences position

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Latest Losers
Latest Losers Theme
Dynamically computed list of top equities currently sorted across major exchanges. The Latest Losers theme has 236 constituents at this time.
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Additional Tools for Harmony Stock Analysis

When running Harmony Biosciences' price analysis, check to measure Harmony Biosciences' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Harmony Biosciences is operating at the current time. Most of Harmony Biosciences' value examination focuses on studying past and present price action to predict the probability of Harmony Biosciences' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Harmony Biosciences' price. Additionally, you may evaluate how the addition of Harmony Biosciences to your portfolios can decrease your overall portfolio volatility.