One-glance verdict
Within fair range
$28.93 our estimate vs market $30.36
Wall Street consensus: $63.00 (117.8% higher than our fair-value estimate)
5% above our estimate
Fundamentals snapshot
Harrow, Inc.
HROW · NGM · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$30.36
52-week range
$25.76 - $54.85
Market cap
$1.14B
Balance sheet
Distressed
1.26x Concerning
Net debt $217.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 11.4% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Net debt grew 1626.6% over 3 years.
- Risk Return on equity was -75.5% last year — the company lost money on shareholders' equity.
What this company does
Harrow, Inc.
Harrow, Inc. makes prescription eye medicines for eye doctors to use. The money they make mostly comes from selling these specialized eye drugs, which is important because it shows how well their products are selling. They focus on making a variety of eye medications, from antibiotics to treatments for serious eye conditions like macular degeneration.
How the company got here
Harrow, Inc., originally known as Harrow Health, Inc., was founded in 1998 and is headquartered in Nashville, Tennessee. The company has focused on the eyecare pharmaceutical space, evolving its strategy over time. A key turning point was its name change to Harrow, Inc. in September 2023, signaling a refined focus on its core ophthalmic pharmaceutical products. This strategic shift aimed to consolidate its identity and operations within the specialized field of eye care.
What it actually does
Harrow, Inc. is a pharmaceutical company dedicated to developing and selling medications specifically for eye conditions. Think of them as a specialized drug maker for eyes, creating treatments for everything from infections and inflammation to more complex conditions like age-related macular degeneration. Their products are designed to help patients see better and manage various eye diseases, aiming to improve vision and quality of life through targeted therapies.
Branded
The Branded segment is where Harrow, Inc. offers a portfolio of established and newly developed eye care medications. This includes treatments like ILEVRO and NEVANAC, which are non-steroidal anti-inflammatory eye drops used to manage pain and swelling after cataract surgery. They also provide VIGAMOX, an antibiotic eye drop for bacterial infections, and various steroid eye drops like MAXIDEX and FLAREX for inflammatory conditions. This segment represents a significant portion of the company's business, providing doctors with a range of trusted options for their patients' eye health needs.
ImprimisRx
The ImprimisRx segment focuses on providing compounded ophthalmic medications, which are custom-made medications prepared by pharmacists for specific patient needs. This segment also includes innovative products like IHEEZO, an ophthalmic gel used during eye surgery, and biosimilars such as BYOOVIZ and OPUVIZ. BYOOVIZ is a version of LUCENTIS, used for conditions like wet age-related macular degeneration, while OPUVIZ is a biosimilar to EYLEA, treating similar retinal diseases. This part of Harrow's business is crucial for offering specialized and often personalized treatment solutions in eye care.
What management is betting on now
Harrow's management is strategically focused on expanding its portfolio of ophthalmic pharmaceutical products, particularly through the development and commercialization of innovative treatments and biosimilars. They are investing in products that address significant unmet needs in eye care, aiming to capture a larger share of the market. The company's emphasis on both branded and compounded medications, including advanced biosimilars, shows a commitment to providing a comprehensive suite of solutions for eye diseases and conditions, driving future growth and profitability.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-18.33M
FY2025 Q1
$19.50M
FY2025 Q2
$-969.00K
FY2025 Q3
$16.38M
FY2025 Q4
$8.07M
FY2026 Q1
$-9.19M
FY2026 Q2
$-10.25M
FY2026 Q3
$-8.99M
Revenue
$99.30M
Net income
$9.76M
Diluted EPS
0.25
Operating cash flow
$-8.62M
Free cash flow
$-8.99M
Fetching…
Sources
Revenue
$70.66M
Net income
$-17.27M
Diluted EPS
-0.46
Operating cash flow
$-9.76M
Free cash flow
$-10.25M
Fetching…
Sources
Revenue
$44.20M
Net income
$-27.60M
Diluted EPS
-0.74
Operating cash flow
$-8.99M
Free cash flow
$-9.19M
Fetching…
Sources
Revenue
$89.09M
Net income
$6.63M
Diluted EPS
0.20
Operating cash flow
$8.41M
Free cash flow
$8.07M
Fetching…
Sources
Revenue
$71.64M
Net income
$1.02M
Diluted EPS
0.03
Operating cash flow
$16.59M
Free cash flow
$16.38M
Fetching…
Sources
Revenue
$63.74M
Net income
$5.00M
Diluted EPS
0.13
Operating cash flow
$-803.00K
Free cash flow
$-969.00K
Fetching…
Sources
Revenue
$47.83M
Net income
$-17.78M
Diluted EPS
-0.50
Operating cash flow
$19.67M
Free cash flow
$19.50M
Fetching…
Sources
Revenue
$66.83M
Net income
$6.78M
Diluted EPS
0.19
Operating cash flow
$-17.78M
Free cash flow
$-18.33M
Fetching…
Sources
Is it cheap or expensive?
Fair value $28.93 vs current price $30.36
Wall Street consensus is the average analyst price target: $63.00 (117.8% higher than our fair-value estimate).
Our most-likely fair value is $28.93 a share — about 4.7% away from today's price of $30.36, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $217.4M. Interest coverage 1.3x.
Net debt
$217.38M
Interest coverage
1.26x
Harrow, Inc.'s profit covers its interest bill about 1.3 times over. which is stronger than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
HROW
BASELINE
Harrow, Inc.
Total debt $292.72M Interest coverage 1.26x This is the baseline the peer rows are being compared against.
Total debt $80.01M Interest coverage -22.82x -100% vs HROW This peer has almost no interest-payment cushion compared with HROW.
Total debt $89.43M Interest coverage -8.51x -100% vs HROW This peer has almost no interest-payment cushion compared with HROW.
Total debt $20.71B Interest coverage 1.36x +8% vs HROW Has roughly the same debt cushion as HROW.
Total debt $24.33M Interest coverage -0.23x -100% vs HROW This peer has almost no interest-payment cushion compared with HROW.
Total debt $22.37M Interest coverage -7,376.79x -100% vs HROW This peer has almost no interest-payment cushion compared with HROW.
What you should know
The case for and against HROW
2 Rewards
2 Risks
Rewards
-
Revenue grew 11.4% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Net debt grew 1626.6% over 3 years.
-
Return on equity was -75.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
11.82x
P/B
39.53x
P/S
3.75x
EV/EBITDA
76.75x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
73.5%
Operating margin
11.6%
Net margin
-9.4%
ROE
-75.5%
ROA
-0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
10.15x
Current ratio
2.29x
Quick ratio
0.66x
Total debt
$292.72M
Total cash
$75.34M
Growth
How the business has been compounding
Revenue TTM
$303.25M
Revenue 5Y CAGR
39.2%
EPS TTM
-0.99
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-18.95M
Free CF TTM
$42.98M
FCF margin
14.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—