Education
About Us
Working with TipRanks
Follow Us
Harrow Health (HROW)
:HROW
Top Page
Harrow Health
(NASDAQ:HROW)
50Neutral
Positive Factors
Marketing Strategy
The company's Retina Pivot marketing strategy has been successful, and IHEEZO customer unit demand volume increased 43% sequentially.
Revenue Growth
Management expects 2025 revenue to be over $280M, which would represent a growth rate over 40%.
Negative Factors
Financial Concerns
A delayed 10-K filing is often a cause for concern; in this case, we take management’s reasoning at face value as the incoming auditor requires additional time.
Regulatory Risks
Risks include lower-than-projected market uptake of products, inability to develop and secure regulatory approval of pipeline products, inability to acquire new products, inability to service $216M outstanding debt, and potential dilution risk.
Harrow Health (HROW) vs. S&P 500 (SPY)
Market Cap
$948.40M
Dividend YieldN/A
Average Volume (3M)574.47K
Price to Earnings (P/E)―
Beta (1Y)1.96
Revenue Growth53.32%
EPS Growth33.82%
CountryUS
Employees382
SectorHealthcare
Sector Strength65
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.49
Shares Outstanding35,654,170
10 Day Avg. Volume899,841
30 Day Avg. Volume574,471
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.98
Price to Cash Flow (P/CF)85.70
P/FCF Ratio107.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$59.00Price Target Upside136.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Harrow Health Business Overview & Revenue Model
Company DescriptionHarrow Health, Inc. (HROW) is a publicly traded healthcare company primarily focused on the development, production, and distribution of innovative ophthalmic pharmaceuticals. The company operates within the pharmaceutical sector, providing a range of products aimed at addressing various eye conditions. Harrow Health is committed to improving patient access to medications through its diverse portfolio, which includes proprietary and non-proprietary ophthalmic solutions.
How the Company Makes MoneyHarrow Health generates revenue through the sale of its ophthalmic pharmaceutical products. The company manufactures and distributes a variety of eye care medications, which are sold to healthcare providers, clinics, and other medical institutions. In addition to direct sales, Harrow Health benefits from strategic partnerships and licensing agreements that expand its market reach and product offerings. The company also engages in research and development to continuously enhance its product line, aiming to meet the evolving needs of patients and healthcare professionals.
Harrow Health Financial Statement Overview
Summary
Harrow Health demonstrates revenue growth, yet struggles with profitability and cash flow management. The company is highly leveraged, which could be risky if not managed carefully. While growth in revenue is a positive sign, the consistent losses and negative cash flows present significant challenges. Strategic improvements in cost management and debt reduction could help improve the financial health of the company.Income Statement
Harrow Health has shown revenue growth over the years, with a notable increase in 2024. However, despite the increased revenue, the company struggles with profitability, indicated by negative net income consistently over the years. The gross profit margin is relatively healthy at 75.35% in 2024, but the net profit margin remains negative, highlighting ongoing challenges in converting sales into actual profit.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk. The equity ratio is moderate, suggesting a balanced but cautious stance on asset financing. Return on equity is negative due to the consistent losses, which is a concern for shareholders. The company's assets have grown, but liabilities have too, emphasizing the need for better capital management.50
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow, which is concerning as it suggests that the company is not generating enough cash to cover its capital expenditures. Operating cash flow is negative in 2024, highlighting operational challenges. The free cash flow to net income ratio is unfavorable, as the company struggles to turn profit into cash flow.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.00T> | 130.19M | 88.59M | 72.48M | 48.87M | Gross Profit |
| 10.00T> | 90.55M | 63.21M | 54.26M | 34.41M | EBIT |
| 8.82T | 431.00K | -1.75M | -284.00K | -1.63M | EBITDA |
| 8.82T | 9.72M | -3.20M | -10.14M | 3.49M | Net Income Common Stockholders |
| -17.48M | -24.41M | -14.09M | -18.01M | -3.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 47.25T | 82.77M | 96.27M | 50.67M | 32.56M | Total Assets |
| 10.00T> | 312.16M | 157.02M | 98.33M | 57.47M | Total Debt |
| 228.83M | 190.50M | 104.17M | 77.96M | 23.53M | Net Debt |
| 10.00T> | 116.42M | 7.90M | 35.79M | 19.43M | Total Liabilities |
| 10.00T> | 241.75M | 130.14M | 87.40M | 30.65M | Stockholders Equity |
| 69.65T | 70.77M | 27.24M | 11.29M | 27.18M |
| Cash Flow | Free Cash Flow | |||
| -23.80T | -148.71M | -6.07M | -23.43M | -2.09M | Operating Cash Flow |
| -22.20T | 3.84M | 1.71M | 5.08M | -1.10M | Investing Cash Flow |
| -33.16T | -152.55M | -1.74M | -18.69M | -981.00K | Financing Cash Flow |
| 28.53T | 126.53M | 54.14M | 51.47M | 1.43M |
Harrow Health Technical Analysis
Negative
24.98
Price Trends
28.65
Negative
33.91
Negative
35.18
Negative
Market Momentum
-0.38
Negative
41.62
Neutral
18.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HROW, the sentiment is Negative. The current price of 24.98 is below the 20-day moving average (MA) of 25.73, below the 50-day MA of 28.65, and below the 200-day MA of 35.18, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 41.62 is Neutral, neither overbought nor oversold. The STOCH value of 18.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HROW.
Harrow Health Risk Analysis
Harrow Health disclosed 58 risk factors in its most recent earnings report. Harrow Health reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harrow Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $1.17B | ― | -95.21% | ― | 9.03% | -25.00% | |
50 Neutral | $948.40M | ― | -24.97% | ― | 53.32% | 33.82% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
48 Neutral | $372.51M | ― | -43.42% | ― | -5.97% | -25.87% | |
45 Neutral | $70.81M | ― | 91.63% | ― | -79.77% | 10.85% | |
41 Neutral | $139.54M | ― | -336.97% | ― | 167.28% | -34.13% | |
34 Underperform | $12.08M | ― | -58.71% | ― | -79.66% | -141.87% |
* Healthcare Sector Average
Performance Comparison
HROW
Harrow Health
24.98
12.60
101.78%
PRPH
Prophase Labs
0.40
-6.49
-94.19%
EYPT
EyePoint Pharmaceuticals
5.05
-15.23
-75.10%
OCUL
Ocular Therapeutix
6.54
-1.94
-22.88%
CLSD
Clearside Biomedical
0.91
-0.49
-35.00%
SCPH
scPharmaceuticals
2.33
-2.45
-51.26%
Harrow Health Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -10.37% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and strategic product launches, particularly with VEVYE and the retina pivot strategy. However, inventory issues with VEVYE and seasonal impacts on revenue were noted as challenges.Highlights
Record Revenue Growth
Harrow reported record revenue of $49.3 million, a 44% increase over the prior year quarter, indicating strong growth.
VEVYE Prescription Success
VEVYE prescription volume increased by 55% in the third quarter compared to the second quarter, with a refill rate of over 90%.
Operational Improvements and New Product Launches
Implemented the 'retina pivot' strategy, focusing on the retina specialist community, which is already showing benefits. TRIESENCE was successfully relaunched in October.
Lowlights
Inventory Challenges for VEVYE
A temporary inventory shortage of VEVYE led to capped revenue potential in the third quarter.
Q3 Seasonality Impact
Summer seasonality affected surgical scheduling, traditionally causing a weaker third quarter.
Company Guidance
During the third quarter of 2024, Harrow reported record revenue of $49.3 million, marking a 44% increase from the prior year and a small increase over the previous quarter. The company's key product, VEVYE, experienced a 55% increase in prescription volume compared to the second quarter, despite facing an inventory shortage. VEVYE's refill rate is impressive, with over 90% of patients refilling their prescriptions. IHEEZO saw a 15% sequential rise in unit demand from the second quarter and an 82% reorder rate. The company made a strategic decision to focus on the retina specialist community, which is expected to bolster IHEEZO's performance. Additionally, TRIESENCE was relaunched in October, with positive initial responses, particularly regarding reimbursement. Harrow's commercial team expanded the number of covered territories for VEVYE from 51 to 61, contributing to its growth trajectory.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.