Latest Ratios: P/E Ratio 15.2x · EV/EBITDA 8.0x · ROE 20.8%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.4B | $2.2B | $2.0B | $2.0B | $3.4B | $2.5B | $2.1B | — | — |
| Enterprise Value | $1.9B | $1.7B | $1.7B | $1.8B | $3.3B | $2.5B | $2.1B | — | — |
| P/E Ratio → | 15.19 | 13.81 | 13.71 | 15.16 | 18.55 | 73.52 | — | — | — |
| P/S Ratio | 2.74 | 2.52 | 2.79 | 3.35 | 7.69 | 8.27 | 13.09 | — | — |
| P/B Ratio | 2.77 | 2.52 | 3.02 | 4.18 | 8.36 | 13.54 | 21.52 | — | — |
| P/FCF | 6.85 | 6.30 | 9.11 | 8.90 | 23.33 | 25.69 | — | — | — |
| P/OCF | 6.84 | 6.29 | 9.06 | 8.89 | 23.30 | 25.61 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.93 | 2.41 | 3.15 | 7.57 | 8.14 | 12.88 | — | — |
| EV / EBITDA | 8.00 | 7.18 | 8.00 | 8.47 | 23.08 | 23.37 | 75.55 | — | — |
| EV / EBIT | 8.97 | 7.30 | 8.22 | 9.29 | 26.84 | 40.34 | — | — | — |
| EV / FCF | — | 4.82 | 7.86 | 8.36 | 22.97 | 25.30 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.2% | 77.2% | 78.1% | 79.2% | 80.9% | 81.8% | 82.6% | 73.7% | — |
| Operating Margin | 24.0% | 24.0% | 26.7% | 33.0% | 27.4% | 28.7% | 10.6% | -2433.8% | — |
| Net Profit Margin | 18.3% | 18.3% | 20.4% | 22.1% | 41.4% | 11.3% | -23.1% | -2535.1% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.8% | 20.8% | 25.8% | 29.6% | 61.6% | 24.4% | -86.3% | -434.6% | -48.9% |
| ROA | 14.0% | 14.0% | 16.1% | 17.4% | 32.8% | 8.0% | -13.8% | -155.1% | -44.7% |
| ROIC | 42.0% | 42.0% | 38.9% | 41.2% | 36.2% | 62.3% | 20.4% | -57.0% | — |
| ROCE | 22.6% | 22.6% | 25.9% | 30.9% | 24.7% | 26.0% | 9.0% | -172.8% | -50.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.28 | 0.41 | 0.48 | 1.05 | 2.00 | — | 3.98 |
| Debt / EBITDA | 1.02 | 1.02 | 0.84 | 0.89 | 1.33 | 1.84 | 7.14 | — | — |
| Net Debt / Equity | — | -0.59 | -0.41 | -0.25 | -0.13 | -0.21 | -0.35 | — | 2.95 |
| Net Debt / EBITDA | -2.19 | -2.19 | -1.26 | -0.55 | -0.36 | -0.36 | -1.26 | — | — |
| Debt / FCF | — | -1.47 | -1.24 | -0.54 | -0.36 | -0.39 | — | — | — |
| Interest Coverage | 15.68 | 15.68 | 11.96 | 8.30 | 6.57 | 2.55 | -0.31 | -24.03 | — |
Net cash position: cash ($753M) exceeds total debt ($240M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.60 | 3.60 | 3.31 | 2.75 | 5.07 | 5.29 | 1.95 | 1.58 | 11.99 |
| Quick Ratio | 3.58 | 3.58 | 3.27 | 2.72 | 5.02 | 5.21 | 1.93 | 1.53 | 11.99 |
| Cash Ratio | 3.08 | 3.08 | 2.67 | 2.16 | 4.10 | 4.36 | 1.70 | 1.23 | 11.55 |
| Asset Turnover | — | 0.68 | 0.72 | 0.72 | 0.65 | 0.70 | 0.37 | 0.06 | — |
| Inventory Turnover | 37.02 | 37.02 | 21.79 | 22.61 | 19.43 | 12.53 | 7.26 | 1.45 | — |
| Days Sales Outstanding | — | 40.68 | 42.40 | 46.49 | 45.63 | 41.64 | 50.67 | 259.06 | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 7.2% | 7.3% | 6.6% | 5.4% | 1.4% | — | — | — |
| FCF Yield | 14.6% | 15.9% | 11.0% | 11.2% | 4.3% | 3.9% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 5.1% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 5.1% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $59M | $58M | $60M | $61M | $59M | $58M | $64M | $49M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying HRMY stock.
Harmony Biosciences Holdings, Inc.'s current P/E ratio is 15.2x. The historical average is 27.0x. This places it at the 60th percentile of its historical range.
Harmony Biosciences Holdings, Inc.'s current EV/EBITDA is 8.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.3x.
Harmony Biosciences Holdings, Inc.'s return on equity (ROE) is 20.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -51.0%.
Based on historical data, Harmony Biosciences Holdings, Inc. is trading at a P/E of 15.2x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Harmony Biosciences Holdings, Inc. has 77.2% gross margin and 24.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Harmony Biosciences Holdings, Inc.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Single-product revenue concentration
Metrics are mathematically derived from official filings.
Operating Leverage Drives Margin Expansion
Q2 2026 operating margin hit 34.2%, up from 24.0% a year earlier, as revenue scaled against fixed costs, according to reported financials.
The sequential jump in operating margin from 17.3% in Q1 2026 to 34.2% in Q2 2026 underscores the high fixed-cost structure typical of commercial biotech. Gross margin dipped to 75.8% due to tiered royalties to Bioprojet, yet operating leverage more than compensated, suggesting that incremental revenue is highly accretive. Net margin of 28.9% reflects both operational efficiency and a lower tax rate, but investors should monitor R&D volatility, which can distort quarterly profitability.
ROIC Volatility Masks Underlying Compounding
ROIC swung from 4.1% in Q2 2024 to 11.8% in Q2 2026, with a 10-quarter average near 9%, indicating improving capital efficiency, per financial statements.
The wide quarterly swings in ROIC—ranging from 4.1% to 13.0%—are driven by timing of expenses and working capital changes, not a structural decay. The upward trend in ROIC, coupled with a rising equity base (up 85% since Q1 2024), suggests the company is compounding returns as it scales. However, ROE remains modest at 7.9% due to a conservative balance sheet with minimal leverage, implying returns are earned on a large equity base rather than through financial engineering.
Working Capital Efficiency Improves with Scale
Cash conversion cycle compressed to 10 days in Q2 2026 from 29 days in Q4 2024, driven by faster receivables collection and extended payables, as per quarterly data.
DSO improved from 45 days in Q2 2025 to 38 days in Q2 2026, while DPO extended to 36 days, reflecting growing negotiating power with suppliers. The near-zero DIO (8 days) highlights the asset-light model with minimal inventory, typical of a specialty pharma. The negative working capital swings in Q1 2026 (CCC of 7 days) versus Q4 2025 (16 days) indicate that quarterly cash flow can be lumpy, but the overall trend suggests improving efficiency as revenue scales.
Deleveraging Strengthens Balance Sheet Flexibility
Debt-to-equity fell from 0.37 in Q1 2024 to 0.15 in Q2 2026, while interest coverage rose to 31.3x, indicating ample cushion, based on reported figures.
Total debt declined to $154.0M, and with cash of $549.8M, net debt is negative, providing substantial financial flexibility. Interest coverage of 31.3x in Q2 2026 is up from 5.9x in Q2 2024, reflecting both higher operating income and lower debt. This conservative leverage profile suggests the company can fund pipeline investments and potential M&A without straining its balance sheet, though the recent Zynerba acquisition adds integration risk.
Ample Liquidity Buffers Against Operational Risks
Current ratio of 3.48 and quick ratio of 3.45 in Q2 2026, with $549.8M cash, provide a fortress-like liquidity position, as per balance sheet data.
The liquidity position is exceptionally strong, with cash alone covering over three times current liabilities. This buffer is critical given the single-product concentration and ongoing IP litigation, which could require unexpected cash outlays. The negligible inventory (DIO of 8 days) means the quick ratio is nearly identical to the current ratio, indicating no inventory liquidation risk. Such liquidity supports continued investment in pipeline expansion without external financing pressure.
P/E Misleads on Single-Product Risk
The trailing P/E of 14.7 appears cheap, but it obscures the high risk from WAKIX concentration and legal overhangs, warranting a sum-of-parts approach.
The low P/E relative to peers like Jazz (negative earnings) and Axsome (negative earnings) may reflect a 'single-product discount' rather than undervaluation. However, P/E fails to capture the potential for pipeline value (e.g., BP-205) and the risk of generic erosion or legal setbacks. Investors should use EV/EBITDA (7.65x) or P/FCF (6.62x) to better assess cash-generative capacity, and consider scenario analysis that adjusts for WAKIX revenue durability. The market may be overemphasizing near-term earnings while underpricing the long-term optionality of the pipeline.