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. Several key financial ratios indicate that the company is underperforming compared to its sector, raising concerns about its valuation.
One significant metric is the Return on Equity (ROE) ratio, which stands at -25.10. This ratio measures a company's ability to generate profit from its shareholders' equity. In Harrow's case, a negative ROE indicates that the company is losing money relative to the equity invested by shareholders. The sector average ROE is substantially lower at -76.41, suggesting that while both are negative, Harrow’s performance is relatively better but still concerning.
Another critical ratio is the Return on Assets (ROA), which is -4.49 for Harrow. This ratio assesses how efficiently a company uses its assets to generate earnings. A negative ROA means that Harrow is not effectively utilizing its assets to produce profits, particularly in comparison to the sector's -47.59, which indicates greater inefficiency in the industry as a whole.
The Net Profit Margin for Harrow is -8.76, showing that the company is not generating a profit on its sales. This ratio reflects the percentage of revenue that remains after all expenses are deducted. Meanwhile, the sector's average is -137.57, which highlights that Harrow is performing better than the average but still struggles to achieve profitability.
These financial indicators suggest that Harrow’s high valuation may not be justified given its negative performance metrics relative to the industry.
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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