Harrow, headquartered in Nashville, Tennessee, develops and sells innovative ophthalmic medications and operates ImprimisRx, employing 315 staff since its IPO on February 8, 2013. The company markets various prescription products, including VIGAMOX and IHEEZO.
Based on our analysis, Harrow has received an overvalued rating of 1 out of 5 stars from Cashu. The company's financial performance reveals several concerning metrics when compared to its sector peers.
One significant ratio is the Price-to-Book (PB) Ratio, which stands at 17.15, far exceeding the sector average of 2.71. A high PB ratio suggests that the stock may be overpriced relative to its actual book value, raising concerns about its valuation in the market.
Additionally, Harrow's Net Profit Margin is at -8.76, while the sector average is -137.57. Although a negative margin indicates that the company is not currently profitable, it is noteworthy that Harrow's margin is less negative than the sector average. However, this still implies ongoing struggles in generating profit.
The Return on Equity (ROE) Ratio for Harrow is -25.10, compared to the sector’s -76.41. A negative ROE indicates that the company is not effectively using its equity to generate profits. Although Harrow's performance is better than the sector's, it still highlights inefficiencies that investors should consider.
Lastly, Harrow’s Return on Assets (ROA) Ratio stands at -4.49, whereas the sector’s average is -47.59. Like the other ratios, a negative ROA signifies that the company is not generating income from its assets, which could deter potential investors.
In summary, Harrow's financial ratios indicate that it may be overvalued compared to its sector, suggesting caution for potential investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Health Care
Overvalued
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