HRMYHarmony Biosciences Holdings, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.0×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 19% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HRMY?
Harmony Biosciences Holdings, Inc. earns 38% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 29 points above what the capital costs: growth creates value
- Operating margin
- 24%
Operating margin · Biotechnology median −77% · 12 months to Q2 2026
- Cash conversion
- 2.05×
Cash conversion · 1.46× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.56%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 29% |
| FY2022 | 27% |
| FY2023 | 33% |
| FY2024 | 27% |
| FY2025 | 24% |
Details›
- Gross margin12 months to Q2 2026
- 75%
- Operating margin12 months to Q2 2026
- 24%
- Net margin12 months to Q2 2026
- 19%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $960M
- Net income, trailing twelve months
- $181M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 38%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.