Harrow Health (HROW) AI Stock Analysis

• Market Cap: $884.85M
• Dividend Yield: N/A
• Average Volume (3M): 499.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 53.32%
• EPS Growth: 33.82%
• Country: US
• Employees: 382
• Sector: Healthcare
• Sector Strength: 54
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.50
• Shares Outstanding: 36,685,170
• 10 Day Avg. Volume: 373,843
• 30 Day Avg. Volume: 499,092
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $59.00
• Price Target Upside: 141.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Harrow Health's struggles with profitability and cash flow management significantly impact its financial performance score, which is the major factor in the overall evaluation. Technical analysis provides mixed signals, suggesting market uncertainty. Valuation remains challenging with a negative P/E ratio, further dragging down the score. The company needs to address its financial challenges to improve investor confidence.

Positive Factors

Marketing Strategy

The company's Retina Pivot marketing strategy has been successful, and IHEEZO customer unit demand volume increased 43% sequentially.

Product Accessibility

TRIESENCE has been granted transitional pass-through reimbursement status by the Centers for Medicare & Medicaid Services, expanding patient access and increasing addressable market opportunity.

Revenue Growth

Management expects 2025 revenue to be over $280M, which would represent a growth rate over 40%.

Negative Factors

Financial Risks

Risks include inability to service $216M outstanding debt and potential dilution risk.

Regulatory Risks

Risks include inability to develop and secure regulatory approval of pipeline products.

Harrow Health Business Overview & Revenue Model

Company Description

Harrow Health, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business; and DEXYCU for the treatment of post-operative inflammation. The company also holds equity interests in Surface Ophthalmics, Inc., a clinical-stage pharmaceutical company that focuses on development and commercialization of therapeutics for ocular surface diseases; Melt Pharmaceuticals, Inc., a clinical-stage pharmaceutical company that focused on the development and commercialization of proprietary non-intravenous, sedation, and anesthesia therapeutics for human medical procedures in hospital, outpatient, and in-office settings; and Eton Pharmaceuticals, Inc., a commercial-stage pharmaceutical company that engages in developing and commercializing drug products. Harrow Health, Inc. owns royalty rights in four clinical stage drug candidates being developed by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

How the Company Makes Money

Harrow Health generates revenue through the sale of its ophthalmic pharmaceutical products. The company manufactures and distributes a variety of eye care medications, which are sold to healthcare providers, clinics, and other medical institutions. In addition to direct sales, Harrow Health benefits from strategic partnerships and licensing agreements that expand its market reach and product offerings. The company also engages in research and development to continuously enhance its product line, aiming to meet the evolving needs of patients and healthcare professionals.

Harrow Health Financial Statement Overview

Summary

Harrow Health demonstrates revenue growth, yet struggles with profitability and cash flow management. The company is highly leveraged, which could be risky if not managed carefully. While growth in revenue is a positive sign, the consistent losses and negative cash flows present significant challenges. Strategic improvements in cost management and debt reduction could help improve the financial health of the company.

Income Statement

Harrow Health has shown revenue growth over the years, with a notable increase in 2024. However, despite the increased revenue, the company struggles with profitability, indicated by negative net income consistently over the years. The gross profit margin is relatively healthy at 75.35% in 2024, but the net profit margin remains negative, highlighting ongoing challenges in converting sales into actual profit.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk. The equity ratio is moderate, suggesting a balanced but cautious stance on asset financing. Return on equity is negative due to the consistent losses, which is a concern for shareholders. The company's assets have grown, but liabilities have too, emphasizing the need for better capital management.

Cash Flow

Cash flow analysis shows negative free cash flow, which is concerning as it suggests that the company is not generating enough cash to cover its capital expenditures. Operating cash flow is negative in 2024, highlighting operational challenges. The free cash flow to net income ratio is unfavorable, as the company struggles to turn profit into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.00T>	130.19M	88.59M	72.48M	48.87M
	Gross Profit
10.00T>	90.55M	63.21M	54.26M	34.41M
	EBIT
8.82T	431.00K	-1.75M	-284.00K	-1.63M
	EBITDA
8.82T	9.72M	-3.20M	-10.14M	3.49M
	Net Income Common Stockholders
-17.48M	-24.41M	-14.09M	-18.01M	-3.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.25T	82.77M	96.27M	50.67M	32.56M
	Total Assets
10.00T>	312.16M	157.02M	98.33M	57.47M
	Total Debt
228.83M	190.50M	104.17M	77.96M	23.53M
	Net Debt
10.00T>	116.42M	7.90M	35.79M	19.43M
	Total Liabilities
10.00T>	241.75M	130.14M	87.40M	30.65M
	Stockholders Equity
69.65T	70.77M	27.24M	11.29M	27.18M
Cash Flow		Free Cash Flow
-23.80T	-148.71M	-6.07M	-23.43M	-2.09M
	Operating Cash Flow
-22.20T	3.84M	1.71M	5.08M	-1.10M
	Investing Cash Flow
-33.16T	-152.55M	-1.74M	-18.69M	-981.00K
	Financing Cash Flow
28.53T	126.53M	54.14M	51.47M	1.43M

Harrow Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HROW, the sentiment is Negative. The current price of 24.4 is above the 20-day moving average (MA) of 24.28, below the 50-day MA of 25.03, and below the 200-day MA of 35.48, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 21.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HROW.

Harrow Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	81 Outperform	$376.49M	6.36	28.70%	10.13%	-0.86%	-13.33%
COLL	75 Outperform	$888.44M	15.03	19.23%	―	11.41%	45.89%
AMPH	74 Outperform	$1.13B	7.79	19.90%	―	8.05%	-8.46%
PCRX	65 Neutral	$1.16B	―	-12.27%	―	3.85%	-339.15%
ANIP	65 Neutral	$1.52B	―	-4.86%	―	26.20%	-219.22%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
HROW	47 Neutral	$884.85M	―	-37.23%	―	53.32%	33.82%