Harmony Biosciences Holdings, Inc. — Biotechnology. Scored on the same transparent 7-signal model behind the daily rankings.
★
HRMY
Harmony Biosciences Holdings, Inc. · Biotechnology
FCF$342mC
Rev+21.5%A-
D/E0.18B+
P/E15.3xA-
PEG0.72A-
82.6Score
$38.21$2.2B
1Y Target$44.91Analyst consensus · 11 analysts
5Y Target$56.70Compound horizon
10Y Target$72.71Long-dated conviction
FCF$342mTTMC
FCF $342m — modest; watch for margin expansion
Rev+21.5%TTM YoYA-
Revenue +21.5% — strong growth, well above S&P median (~7%)
D/E0.18B+
D/E 0.18 — below the Healthcare debt median (≈40th pctile)
P/E15.3xA-
P/E 15.3 — cheaper than most Healthcare peers (≈25th pctile)
PEG0.72proxyA-
PEG 0.72 — strong; Lynch's preferred zone · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 82.6
Quality0.77
Growth1.00
Value0.73
Why this score
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
7% off the 12-month high
vs DCF fair value74% belowest. fair value ~$145
Quality signals · context only
Gross profitability54% · Agross profit ÷ total assets (Novy-Marx)
ROIC14.0% · B+return on invested capital — not score-weighted
Why now
Harmony Biosciences presents a compelling growth opportunity, driven by the expanding market penetration of its flagship drug WAKIX for narcolepsy and a robust pipeline targeting other rare neurological diseases. With a remarkable 21.5% FY YoY revenue growth and a highly attractive 0.69 PEG ratio, the market is underpricing this commercial-stage pharmaceutical's compounding potential. The strong $342m in TTM free cash flow and a healthy 16.2% profit margin underscore its operational efficiency, with future growth hinging on the successful clinical development and commercialization of Pitolisant for conditions like Prader-Willi Syndrome and Myotonic Dystrophy.
Moat
Harmony's durable edge stems from WAKIX's novel mechanism of action, offering a differentiated therapy for excessive daytime sleepiness in narcolepsy, which creates a strong competitive position in the rare neurological disease market. The company's strategic focus on developing Pitolisant for additional indications like Prader-Willi Syndrome and Myotonic Dystrophy demonstrates a commitment to expanding its intellectual property and market reach within specialized, high-barrier-to-entry therapeutic areas. This pipeline depth, coupled with the established commercial success of WAKIX, solidifies its long-term market presence against potential competitors.
Risk
The primary bear case against Harmony Biosciences centers on its reliance on the successful expansion of Pitolisant into new indications and the inherent execution risks of pharmaceutical development. While WAKIX is performing well, any significant setback in the Phase 3 clinical trial for Prader-Willi Syndrome or the Phase 2 trials for Myotonic Dystrophy could severely impact future revenue streams and justify the wide analyst target range of "$28–$85". A sustained deceleration in WAKIX's revenue growth, or a clinical trial failure for Pitolisant in its pipeline indications, would be the concrete signal confirming the bear thesis.
Horizon
1-3 yr $44.91 (11-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $56.70 at ~8% CAGR — dividend + buyback compounding. 10 yr $72.71 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · HRMY
$
%
%
Shares to buy
52
Position size
$1,987
4.0% of portfolio
Stop price
$28.66
25% below $38.21
$ at risk if stopped
$496.73
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Harmony Biosciences Holdings, Inc. (HRMY): score, valuation & FAQ
Harmony Biosciences Holdings, Inc. (HRMY) is a Biotechnology company that scores 82.6 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-), P/E (A-) and PEG (A-). On valuation, HRMY sits about 74% below our discounted-cash-flow fair value (a margin of safety).
Is HRMY a good stock to buy?
Bull Rankings scores HRMY 82.6 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (A-), P/E (A-) and PEG (A-). A score is a quantitative screen of Harmony Biosciences Holdings, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does HRMY score 82.6 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). HRMY earns its highest marks on Rev (A-), P/E (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is HRMY overvalued or undervalued?
Based on $38.21, HRMY sits about 74% below our discounted-cash-flow fair value (a margin of safety). It trades at a 15.3x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in HRMY?
The primary bear case against Harmony Biosciences centers on its reliance on the successful expansion of Pitolisant into new indications and the inherent execution risks of pharmaceutical development. While WAKIX is performing well, any significant setback in the Phase 3 clinical trial for Prader-Willi Syndrome or the Phase 2 trials for Myotonic Dystrophy could severely impact future revenue streams and justify the wide analyst target range of "$28–$85". A sustained deceleration in WAKIX's revenue growth, or a clinical trial failure for Pitolisant in its pipeline indications, would be the concrete signal confirming the bear thesis.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.