BME:PHM

Stock Analysis Report

Executive Summary

Pharma Mar, S.A., a biopharmaceutical company, engages in the discovery and development of marine-derived anticancer drugs in Spain and internationally.

Rewards

Trading at 20.3% below its fair value

Earnings are forecast to grow 22.19% per year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

How has Pharma Mar's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.0%

PHM

2.7%

ES Biotechs

1.1%

ES Market


1 Year Return

224.4%

PHM

39.4%

ES Biotechs

9.4%

ES Market

Return vs Industry: PHM exceeded the Spanish Biotechs industry which returned 39.4% over the past year.

Return vs Market: PHM exceeded the Spanish Market which returned 9.4% over the past year.


Shareholder returns

PHMIndustryMarket
7 Day-3.0%2.7%1.1%
30 Day21.2%5.2%2.9%
90 Day160.3%12.9%7.8%
1 Year224.4%224.4%40.8%39.4%13.2%9.4%
3 Year56.5%56.5%38.0%35.7%17.1%5.9%
5 Yearn/a72.3%69.2%11.5%-7.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pharma Mar undervalued compared to its fair value and its price relative to the market?

20.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHM (€4.77) is trading below our estimate of fair value (€5.98)

Significantly Below Fair Value: PHM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PHM is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: PHM is unprofitable, so we can't compare its PE Ratio to the Spanish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PHM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PHM is overvalued based on its PB Ratio (49.3x) compared to the ES Biotechs industry average (4.1x).


Next Steps

Future Growth

How is Pharma Mar forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: PHM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PHM's is expected to become profitable in the next 3 years.

Revenue vs Market: PHM's revenue (8.5% per year) is forecast to grow faster than the Spanish market (4.7% per year).

High Growth Revenue: PHM's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHM's Return on Equity is forecast to be very high in 3 years time (50.2%).


Next Steps

Past Performance

How has Pharma Mar performed over the past 5 years?

-37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHM is currently unprofitable.

Growing Profit Margin: PHM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PHM is unprofitable, and losses have increased over the past 5 years at a rate of -37.5% per year.

Accelerating Growth: Unable to compare PHM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PHM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: PHM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pharma Mar's financial position?


Financial Position Analysis

Short Term Liabilities: PHM has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PHM has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PHM has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PHM's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: PHM has a high level of physical assets or inventory.

Debt Coverage by Assets: PHM has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: PHM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PHM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Pharma Mar's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%5.3%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PHM'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 PHM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PHM'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 PHM's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

José María Fernández Sousa-Faro 0

€294,000

Compensation

Mr. José María Fernández Sousa-Faro, Ph.D., founded Pharma Mar, S.A.U. in 1986. He Founded Noscira, S.A., in 2000. Mr. Fernández Sousa-Faro serves as the Chief Executive Officer and President of Pharma Mar ...


CEO Compensation Analysis

Compensation vs Market: José María's total compensation ($USD0.00) is below average for companies of similar size in the Spanish market ($USD902.02K).

Compensation vs Earnings: José María's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
José María Fernández Sousa-Faro
Founder0yrs€294.00k6.47% 68.2m
Pedro Fernández Puentes
Executive Vice-Chairman 0yrs€124.00k0.63% 6.6m
Juan Carlos-Torres Carretero
0yrsno datano data
María Luisa de Francia Caballero
Chief Financial Officer20.1yrsno datano data
Pascal Besman
Chief Operating Officer3.3yrsno datano data
Elena Calleja Crespo
Director of Finance & Administration11.8yrsno datano data
José Luis Moreno Martinez-Losa
Director of Investor Relations & Capital Markets5.1yrsno datano data
Juan Nogués
Director of Marketing and Sales7yrsno datano data
Luis Rupérez
Director of Human Resources & Information Technologies16.6yrsno datano data
Luis Mora Capitán
Managing Director of Oncology Business Unit12.8yrsno datano data

11.8yrs

Average Tenure

Experienced Management: PHM's management team is seasoned and experienced (11.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pharma Mar, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pharma Mar, S.A.
  • Ticker: PHM
  • Exchange: BME
  • Founded: 1986
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €1.054b
  • Shares outstanding: 221.23m
  • Website: https://www.pharmamar.com

Number of Employees


Location

  • Pharma Mar, S.A.
  • Avenida de los Reyes, 1
  • Pol. Industrial La Mina – Norte
  • Madrid
  • Madrid
  • 28770
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHMBME (Bolsas y Mercados Espanoles)YesBearer SharesESEURNov 2015
PHMEBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURNov 2015
PMRDB (Deutsche Boerse AG)YesBearer SharesDEEURNov 2015
0RC6LSE (London Stock Exchange)YesBearer SharesGBEURNov 2015
PHMM.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDNov 2015
PHM1 NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNNov 2015

Biography

Pharma Mar, S.A., a biopharmaceutical company, engages in the discovery and development of marine-derived anticancer drugs in Spain and internationally. The company operates through two segments, Biopharmaceuticals and Consumer Chemicals. It develops and commercializes Yondelis for the treatment of soft tissue sarcomas and for ovarian cancer. The company also develops clinical-stage programs, including Aplidin, Zepsyre, PM184, and PM14. In addition, it develops and markets diagnostics kits; and produces and markets insecticides and air fresheners for household use and household products. Pharma Mar, S.A. was founded in 1986 and is based in Madrid, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:52
End of Day Share Price2020/02/18 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.