Harmony Biosciences Holdings (HRMY) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: N/A
• Average Volume (3M): 674.00K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.50
• Revenue Growth: 17.74%
• EPS Growth: 59.96%
• Country: US
• Employees: 268
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.68
• Shares Outstanding: 57,532,600
• 10 Day Avg. Volume: 893,670
• 30 Day Avg. Volume: 674,002
• PEG Ratio: 0.75
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 8.95
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 5.62
• 1Y Price Target: $51.00
• Price Target Upside: 59.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: $30.00 ▼(-6.45% Downside)

Harmony Biosciences' overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust revenue growth and a promising clinical pipeline. However, technical analysis indicates bearish momentum, which tempers the overall score. The stock appears undervalued based on its P/E ratio, but the lack of a dividend yield is a minor drawback.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for Harmony's products, particularly WAKIX, and supports long-term financial stability.

Pipeline Advancements

Advancements in the clinical pipeline, including upcoming Phase III trial data, suggest potential for future product launches and revenue streams.

Financial Health

Sustained profitability and a strong cash position enhance Harmony's ability to invest in growth opportunities and withstand market challenges.

Negative Factors

Trade Inventory Reduction

Inventory reductions can lead to short-term revenue fluctuations, potentially affecting cash flow and operational planning if not managed carefully.

Potential Milestone Expenses

Significant milestone expenses could impact short-term profitability and cash reserves, requiring careful financial management to maintain growth.

Competitive Challenges

Emerging competitors in the market may challenge Harmony's market share, necessitating strategic differentiation and innovation to maintain leadership.

Harmony Biosciences Holdings Business Overview & Revenue Model

Company Description

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, Inc. was incorporated in 2017 and is based in Plymouth Meeting, Pennsylvania.

How the Company Makes Money

Harmony Biosciences generates revenue primarily through the sale of its pharmaceutical products, particularly its marketed therapies for narcolepsy. The company earns money by selling its drugs through various distribution channels, including pharmacies and healthcare providers. Additionally, Harmony may engage in strategic partnerships with other pharmaceutical companies or healthcare organizations to enhance its product offerings, expand market reach, and facilitate research and development. The success of its revenue model is significantly influenced by the effectiveness of its therapies, the size of the target patient population, pricing strategies, and market access efforts.

Harmony Biosciences Holdings Financial Statement Overview

Summary

Harmony Biosciences shows strong financial performance with robust revenue growth, high profitability margins, and a solid balance sheet with low leverage. The company's cash flow generation is healthy, supporting its operational and strategic initiatives.

Income Statement

Harmony Biosciences has demonstrated strong revenue growth with a TTM increase of 3.72% and a consistent upward trajectory over the past years. The company maintains robust profitability with a gross profit margin of 78.34% and a net profit margin of 23.42% in the TTM. EBIT and EBITDA margins are also healthy at 24.32% and 32.88%, respectively, indicating efficient operational management. The consistent growth and strong margins reflect a solid financial performance in the biotechnology sector.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.024 in the TTM, indicating minimal leverage and financial risk. Return on equity is impressive at 26.32%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 69.76%, highlighting a stable financial structure. Overall, the balance sheet reflects financial stability and prudent management of resources.

Cash Flow

Cash flow analysis reveals a positive trend with a free cash flow growth rate of 16.87% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.44, suggesting strong cash conversion from earnings. The free cash flow to net income ratio is nearly 1, reflecting efficient cash management. While cash flow metrics are strong, continued monitoring of cash flow sustainability is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	772.53M	714.73M	582.02M	437.86M	305.44M	159.74M
Gross Profit	605.19M	557.92M	460.79M	354.37M	249.92M	132.00M
EBITDA	265.05M	233.41M	221.51M	143.57M	106.37M	1.51M
Net Income	180.90M	145.49M	128.85M	181.47M	34.60M	-51.86M
Balance Sheet
Total Assets	1.11B	999.20M	811.45M	673.87M	433.44M	427.07M
Cash, Cash Equivalents and Short-Term Investments	565.27M	467.19M	353.46M	323.12M	234.31M	228.63M
Total Debt	172.09M	179.27M	193.57M	191.65M	191.98M	194.25M
Total Liabilities	334.93M	340.05M	344.46M	271.03M	246.94M	329.89M
Stockholders Equity	773.08M	659.15M	466.99M	402.84M	186.51M	97.18M
Cash Flow
Free Cash Flow	258.73M	218.67M	219.07M	104.29M	-1.74M	-4.99M
Operating Cash Flow	259.38M	219.82M	219.39M	144.47M	98.56M	-2.98M
Investing Cash Flow	-23.67M	-67.48M	-46.44M	-141.83M	-100.30M	-2.00M
Financing Cash Flow	-6.95M	-11.00M	-105.55M	6.84M	7.42M	209.16M

Harmony Biosciences Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRMY, the sentiment is Negative. The current price of 32.07 is below the 20-day moving average (MA) of 34.10, below the 50-day MA of 35.23, and below the 200-day MA of 34.23, indicating a bearish trend. The MACD of -1.49 indicates Positive momentum. The RSI at 17.04 is Positive, neither overbought nor oversold. The STOCH value of 17.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRMY.

Harmony Biosciences Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	72 Outperform	$1.87B	10.34	27.58%	―	17.74%	59.96%
IMCR	64 Neutral	1.73B	-82.86	-5.23%	―	26.90%	62.72%
ARDX	59 Neutral	1.48B	-26.03	-40.41%	―	83.88%	15.24%
ARQT	58 Neutral	2.07B	-23.24	-67.11%	―	99.50%	65.91%
ETNB	42 Neutral	2.18B	-4.08	―	―	―	-82.75%
COGT	37 Underperform	1.85B	-5.47	―	―	―	2.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Harmony Biosciences Holdings Corporate Events

Harmony Biosciences Reveals Promising Preclinical Data for BP1.15205

On June 11, 2025, Harmony Biosciences announced new preclinical data for BP1.15205, a promising orexin 2 receptor agonist, showing significant wake-promoting and cataplexy-suppressing effects in narcolepsy type 1 mouse models. The company plans to begin human trials in the latter half of 2025, with results expected in 2026, potentially enhancing its position in the sleep-wake disorder treatment market.