Harrow Inc Shows Strong Growth Potential with P/B Model Rating

A report indicates Harrow Inc has received a 77% rating in the P/B Growth Investor model, highlighting strong fundamentals and promising growth potential. However, weaknesses in advertising and R&D spending could impact future projections.

Date: 14-09-2024

AI Rating: 6

The report highlights Harrow Inc (HROW) as a promising small-cap growth stock within the Biotechnology & Drugs industry.

Using the P/B Growth Investor model developed by Partha Mohanram, HROW received a rating of 77%. Scores above 80% indicate interest in the stock, while those above 90% suggest strong interest. Thus, HROW’s 77% rating signals solid fundamentals but not exceptional.

The analysis lists several key metrics where HROW excels:

Book/Market Ratio: PASS
Return on Assets: PASS
Cash Flow from Operations to Assets: PASS
Cash Flow from Operations to Assets vs. Return on Assets: PASS
Return on Assets Variance: PASS
Sales Variance: PASS
Capital Expenditures to Assets: PASS

However, the analysis also points out areas of concern:

Advertising to Assets: FAIL
Research and Development to Assets: FAIL

With two “FAIL” ratings, this indicates that while HROW shows strengths in its key financial ratios, deficiencies in advertising and R&D spending may hinder its growth trajectory. The potential impact on future profit margins could depend on the company’s ability to address these weaknesses moving forward.

Stocks: HROW