DB:PHGN

Stock Analysis Report

Executive Summary

Pharming Group N.V., a specialty pharmaceutical company, develops and manufactures biopharmaceutical products in the United States, Europe, and internationally.


Snowflake Analysis

Exceptional growth potential with adequate balance sheet.

Share Price & News

How has Pharming Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PHGN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.1%

PHGN

-4.1%

DE Biotechs

-5.7%

DE Market


1 Year Return

47.5%

PHGN

3.7%

DE Biotechs

6.1%

DE Market

Return vs Industry: PHGN exceeded the German Biotechs industry which returned 3.7% over the past year.

Return vs Market: PHGN exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

PHGNIndustryMarket
7 Day-7.1%-4.1%-5.7%
30 Day-12.2%-8.2%-5.7%
90 Day-8.3%-2.0%-3.6%
1 Year47.5%47.5%4.0%3.7%9.3%6.1%
3 Year315.8%315.8%38.2%36.7%8.9%-0.7%
5 Year275.6%272.8%9.9%7.5%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Pharming Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pharming Group undervalued compared to its fair value and its price relative to the market?

21.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PHGN (€1.26) is trading above our estimate of fair value (€1.13)

Significantly Below Fair Value: PHGN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PHGN is good value based on its PE Ratio (21.4x) compared to the Biotechs industry average (37.5x).

PE vs Market: PHGN is poor value based on its PE Ratio (21.4x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: PHGN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: PHGN is overvalued based on its PB Ratio (8.6x) compared to the DE Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Pharming Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHGN's forecast earnings growth (34.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: PHGN's earnings (34.5% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PHGN's revenue (21.4% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: PHGN's revenue (21.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHGN's Return on Equity is forecast to be high in 3 years time (36.9%)


Next Steps

Past Performance

How has Pharming Group performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHGN has a large one-off loss of €21.2M impacting its September 30 2019 financial results.

Growing Profit Margin: PHGN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PHGN has become profitable over the past 5 years, growing earnings by 6.8% per year.

Accelerating Growth: PHGN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PHGN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: PHGN's Return on Equity (38.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pharming Group's financial position?


Financial Position Analysis

Short Term Liabilities: PHGN's short term assets (€101.8M) exceed its short term liabilities (€90.1M).

Long Term Liabilities: PHGN's short term assets (€101.8M) exceed its long term liabilities (€40.2M).


Debt to Equity History and Analysis

Debt Level: PHGN's debt to equity ratio (59.8%) is considered high.

Reducing Debt: PHGN's debt to equity ratio has increased from 0% to 59.8% over the past 5 years.


Balance Sheet

Inventory Level: PHGN has a low level of unsold assets or inventory.

Debt Coverage by Assets: PHGN's debt is covered by short term assets (assets are 1.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PHGN is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PHGN is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Pharming Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PHGN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PHGN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PHGN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PHGN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PHGN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Simon de Vries (60yo)

11.3yrs

Tenure

€1,356,000

Compensation

Dr. Sijmen De Vries, also known as Simon, M.D., MBA has been the Chief Executive Officer of Pharming Group NV since November 3, 2008 and has also been its Chairman and Member of the Management Board since  ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD1.48M) is about average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sijmen de Vries
Chairman of Management Board & CEO11.3yrs€1.36m1.1% 8.6m
Bruno M. Giannetti
Chief Medical Officer & Member of Management Board13.2yrs€839.00k0.42% 3.3m
Robin Wright
CFO & Member of Management Board4.3yrs€655.00k0.041% 316.6k
Mireille Sanders
Senior Vice President of Operations0.3yrsno datano data
Pericles Calias
Chief Scientific Officer5yrsno datano data
Anne-Marie de Groot
Senior Vice President of Organisational Development6.1yrsno datano data
Paul Jansse
VP & Head of Non-US Commercial Operations3.1yrsno datano data
Stephen Toor
Senior VP & GM of Pharming USA3.1yrsno datano data
Erica Kerkvliet
Head of Research & Development0yrsno datano data
Esther van Stralen
Head of Technical Operations3.1yrsno datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: PHGN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Ward
Member of Board of Supervisory Directors12.8yrs€68.00k0.038% 294.3k
Paul Sekhri
Chairman of Board of Supervisory Directors 3.8yrs€80.00k0.067% 518.7k
Juergen H. Ernst
Vice Chairman of the Board of Supervisory Directors0yrs€68.00k0.070% 547.5k
Aad de Winter
Member of Board of Supervisory Directors10.8yrs€71.00k0.029% 228.4k
D. Jorn
Member of the Supervisor Board Director1.1yrsno datano data

7.3yrs

Average Tenure

73yo

Average Age

Experienced Board: PHGN's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PHGN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Pharming Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pharming Group N.V.
  • Ticker: PHGN
  • Exchange: DB
  • Founded:
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €779.684m
  • Shares outstanding: 631.32m
  • Website: https://www.pharming.com

Number of Employees


Location

  • Pharming Group N.V.
  • Darwinweg 24
  • Leiden
  • Zuid-Holland
  • 2333 CR
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHGU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1998
PHARMENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEUROct 1998
PHGNDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1998
0QCOLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1998
PHGNBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFOct 1998

Biography

Pharming Group N.V., a specialty pharmaceutical company, develops and manufactures biopharmaceutical products in the United States, Europe, and internationally. The company’s lead product is Ruconest, a recombinant human C1 esterase inhibitor that is used for the treatment of acute hereditary angioedema (HAE) in Europe, the United States, Israel, and South Korea. It also engages in the development of recombinant human factor VIII (rhFVIII), a natural human blood clotting factor for treating haemophilia A; and protein replacement treatments for enzyme-defi ciency disorders, such as pompe and fabry diseases, as well as products for contrast induced nephropathy. The company has a partnership with China Shanghai Institute of Pharmaceutical Industry for the development of new products; and development collaboration and license agreement with Novartis to develop and commercialize CDZ173, a small molecule phosphoinositide 3-kinase delta inhibitor to treat patients with activated phosphoinositide 3-kinase delta syndrome. Pharming Group N.V. is headquartered in Leiden, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:03
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.