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Harmony Biosciences HoldingsHRMY +1.35%94 Return-on-Tangible-Equity is 34.51% as of Jun. 2026, which is 4% above its 10-year median of 33.23. GuruFocus rates HRMY with a GF Score™ of 94/100 and a GF Value™ of $46.93 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,200 Biotechnology companies, Harmony Biosciences Holdings ranks better than 91.17% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Harmony Biosciences Holdings's annualized net income for the quarter that ended in Jun. 2026 was $301.7 Mil. Harmony Biosciences Holdings's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $874.3 Mil. Therefore, Harmony Biosciences Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 34.51%.
The historical rank and industry rank for Harmony Biosciences Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HRMY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -48.94 Med: 33.23 Max: 127.58
Current: 23
During the past 8 years, Harmony Biosciences Holdings's highest Return-on-Tangible-Equity was 127.58%. The lowest was -48.94%. And the median was 33.23%.
HRMY's Return-on-Tangible-Equity is ranked better than 91.17% of 1200
companies
in the Biotechnology industry
Industry Median: -42.53
vs HRMY: 23.00
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Harmony Biosciences Holdings Return-on-Tangible-Equity Related Terms
Harmony Biosciences Holdings Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HRMY vs SION, URGN, PVLA: Return-on-Tangible-Equity Comparison
For the Biotechnology subindustry, Harmony Biosciences Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Harmony Biosciences Holdings Return-on-Tangible-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Harmony Biosciences Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Harmony Biosciences Holdings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.51% mean?
Harmony Biosciences Holdings (HRMY) has a Return-on-Tangible-Equity of 34.51% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Harmony Biosciences Holdings and its competitors. This is near median its historical median of 33.23. According to the industry distribution chart, Harmony Biosciences Holdings ranks #106 out of 1200 companies in the Biotechnology industry, placing it in the top 8.8%.
Is Harmony Biosciences Holdings' Return-on-Tangible-Equity too high?
Harmony Biosciences Holdings' current Return-on-Tangible-Equity of 34.51% is near median its 10-year median of 33.23. Based on the distribution chart, Harmony Biosciences Holdings ranks #106 out of 1200 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Harmony Biosciences Holdings has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Harmony Biosciences Holdings' Return-on-Tangible-Equity compare to SION and URGN?
According to the Biotechnology industry distribution chart, Harmony Biosciences Holdings ranks #106 out of 1200 companies for Return-on-Tangible-Equity. This places Harmony Biosciences Holdings in the top 9% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Harmony Biosciences Holdings and its competitors. Harmony Biosciences Holdings's current Return-on-Tangible-Equity is 34.51%, which is near median its own 10-year median of 33.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harmony Biosciences Holdings stock overvalued right now?
Based on GuruFocus' analysis, Harmony Biosciences Holdings (HRMY) is currently considered Modestly Undervalued. The stock's GF Value™ is $46.93, compared to a current price of $38.74 — trading 17.5% below its estimated fair value. The current Return-on-Tangible-Equity is 34.51%, which is near median its 10-year median of 33.23. Harmony Biosciences Holdings' overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Harmony Biosciences Holdings (HRMY), the current Return-on-Tangible-Equity is 34.51% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Harmony Biosciences Holdings (HRMY) Overvalued in 2026?
Based on GuruFocus' analysis, Harmony Biosciences Holdings stock appears to be undervalued.
The current stock price of $38.74 is trading 17.5% below its estimated GF Value™ of $46.93.
GuruFocus considers Harmony Biosciences Holdings to be Modestly Undervalued.
Key valuation signals for HRMY:
Return-on-Tangible-Equity: 34.51% (near median its 10-year median of 33.23)
GF Value™: $46.93 vs. price of $38.74 (17.5% below fair value)
No single metric tells the full story. See the HRMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harmony Biosciences Holdings Inc is a commercial-stage pharmaceutical company focused on developing and commercializing therapies for patients living with rare neurological diseases who have unmet medical needs. The company has one reportable segment: rare neurological diseases. Its product WAKIX (pitolisant) is a molecule with a novel mechanism of action specifically designed to increase histamine signaling in the brain by binding to H3 receptors and is used for the treatment of cataplexy in adult patients with narcolepsy. The other drug candidates in its pipeline are Pitolisant, HBS-102 (MCHR1 antagonist), BP1.15205 (orexin-2 receptor agonist), ZYN002 (cannabidiol gel), EPX-100 (clemizole hydrochloride), and EPX-200 (lorcaserin), among others.
94GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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