Harmony Biosciences Holdings (HRMY) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: N/A
• Average Volume (3M): 954.73K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.20
• Revenue Growth: 21.13%
• EPS Growth: 50.86%
• Country: US
• Employees: 268
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.87
• Shares Outstanding: 57,596,360
• 10 Day Avg. Volume: 1,135,834
• 30 Day Avg. Volume: 954,732
• 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: 0.65
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 4.54
• 1Y Price Target: $45.22
• Price Target Upside: 46.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.21
• Revenue Forecast (FY): $849.54M

• Rating: 83 Outperform
• Price Target: $36.00 ▲(16.35% Upside)

Harmony Biosciences Holdings scores highly due to its strong financial performance, undervalued valuation, and positive earnings call. The company's robust cash position and promising pipeline advancements further bolster its outlook. However, technical analysis indicates mixed signals, with short-term bullish momentum but longer-term bearish trends. The absence of significant corporate events means the focus remains on financial and operational strengths.

Positive Factors

Revenue Growth

The strong year-over-year revenue growth indicates effective market penetration and product adoption, supporting long-term business sustainability.

Pipeline Advancements

Advancements in the pipeline, including new trials, enhance future growth prospects and demonstrate ongoing innovation in product development.

Cash Generation

Strong cash generation improves financial flexibility, enabling strategic investments and providing a buffer against market uncertainties.

Negative Factors

Operating Expenses

Rising operating expenses, driven by pipeline investments, could pressure margins and require careful management to sustain profitability.

Fragile X Syndrome Study Setback

The setback in the Fragile X syndrome study highlights risks in drug development, potentially delaying product diversification and revenue streams.

Moderated Revenue Growth

While growth remains positive, the moderation in revenue growth pace may signal challenges in maintaining high growth rates, affecting long-term projections.

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 exhibits a robust financial profile with strong 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. Overall, the financial statements indicate a well-managed company with a positive growth outlook in the biotechnology industry.

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	825.94M	714.73M	582.02M	437.86M	305.44M	159.74M
Gross Profit	641.74M	557.92M	460.79M	354.37M	249.92M	132.00M
EBITDA	258.05M	233.41M	221.51M	143.57M	106.37M	1.51M
Net Income	185.68M	145.49M	128.85M	181.47M	34.60M	-51.86M
Balance Sheet
Total Assets	1.21B	999.20M	811.45M	673.87M	433.44M	427.07M
Cash, Cash Equivalents and Short-Term Investments	647.00M	467.19M	353.46M	323.12M	234.31M	228.63M
Total Debt	20.00M	179.27M	193.57M	191.65M	191.98M	194.25M
Total Liabilities	373.10M	340.05M	344.46M	271.03M	246.94M	329.89M
Stockholders Equity	835.12M	659.15M	466.99M	402.84M	186.51M	97.18M
Cash Flow
Free Cash Flow	296.89M	218.67M	219.07M	104.29M	-1.74M	-4.99M
Operating Cash Flow	297.61M	219.82M	219.39M	144.47M	98.56M	-2.98M
Investing Cash Flow	-29.20M	-67.48M	-46.44M	-141.83M	-100.30M	-2.00M
Financing Cash Flow	-8.78M	-11.00M	-105.55M	6.84M	7.42M	209.16M

Harmony Biosciences Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRMY, the sentiment is Neutral. The current price of 30.94 is above the 20-day moving average (MA) of 28.27, above the 50-day MA of 30.14, and below the 200-day MA of 33.15, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 91.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HRMY.

Harmony Biosciences Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	83 Outperform	$1.81B	9.74	25.93%	―	21.13%	50.86%
IMCR	63 Neutral	$1.55B	―	-5.38%	―	26.90%	62.72%
ARQT	59 Neutral	$2.94B	―	-28.17%	―	129.21%	80.35%
ARDX	55 Neutral	$1.45B	-23.85	-36.18%	―	58.12%	24.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ETNB	42 Neutral	―	―	-86.86%	―	―	-82.75%
COGT	37 Underperform	$1.97B	―	-95.40%	―	―	4.68%

Harmony Biosciences Holdings Corporate Events

Harmony Biosciences Reports Strong Q3 2025 Results

Harmony Biosciences Holdings, Inc., a pharmaceutical company specializing in therapies for rare neurological diseases, has reported strong financial results for the third quarter of 2025, driven by its flagship product WAKIX®. The company operates in the biotechnology sector, focusing on innovative treatments for conditions such as narcolepsy and idiopathic hypersomnia.

Harmony Biosciences Q3 Earnings Call Highlights Robust Growth

Harmony Biosciences Holdings, Inc. recently held its earnings call, revealing a strong performance marked by significant revenue growth and an increase in patient numbers. The company showcased a robust cash position and promising advancements in its pipeline. However, challenges were acknowledged, particularly in the Fragile X syndrome study, alongside increased operating expenses.

Harmony Biosciences Phase 3 Study Misses Endpoint

On September 24, 2025, Harmony Biosciences announced that its Phase 3 RECONNECT study of ZYN002 in Fragile X syndrome did not meet its primary endpoint due to a higher than expected placebo response rate. Despite this, the company remains committed to analyzing the data for insights and continuing its development of therapies for rare neurological conditions, with plans to initiate Phase 3 trials for other programs later this year.

The most recent analyst rating on (HRMY) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Harmony Biosciences Holdings stock, see the HRMY Stock Forecast page.

Harmony Biosciences Earnings Call Highlights Growth and Innovation

Harmony Biosciences Holdings, Inc. recently held its earnings call, which conveyed a generally positive sentiment. The company highlighted strong revenue growth and significant advancements in its pipeline. While there were some concerns about inventory fluctuations and potential regulatory challenges, Harmony’s solid financial position and strategic collaborations suggest continued growth and innovation.