ENXTAM:PHARM

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

Fundamentals

Reasonable 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: PHARM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

PHARM

0.6%

NL Biotechs

-0.9%

NL Market


1 Year Return

47.4%

PHARM

15.4%

NL Biotechs

9.3%

NL Market

Return vs Industry: PHARM exceeded the Dutch Biotechs industry which returned 15.4% over the past year.

Return vs Market: PHARM exceeded the Dutch Market which returned 9.3% over the past year.


Shareholder returns

PHARMIndustryMarket
7 Day-4.4%0.6%-0.9%
30 Day-3.5%7.1%0.7%
90 Day6.6%2.7%7.7%
1 Year47.4%47.4%15.9%15.4%14.2%9.3%
3 Year434.3%430.3%31.5%29.1%46.1%29.7%
5 Year237.1%234.6%78.4%73.8%65.2%31.9%

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

Valuation

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

21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PHARM (€1.21) is trading above our estimate of fair value (€1.06)

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


Price To Earnings Ratio

PE vs Industry: PHARM is good value based on its PE Ratio (21x) compared to the Biotechs industry average (29x).

PE vs Market: PHARM is poor value based on its PE Ratio (21x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: PHARM is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PHARM is overvalued based on its PB Ratio (8.5x) compared to the XE Biotechs industry average (3.1x).


Next Steps

Future Growth

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

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHARM's forecast earnings growth (19.1% per year) is above the savings rate (0.4%).

Earnings vs Market: PHARM's earnings (19.1% per year) are forecast to grow faster than the Dutch market (10.2% per year).

High Growth Earnings: PHARM's earnings are forecast to grow, but not significantly.

Revenue vs Market: PHARM's revenue (20% per year) is forecast to grow faster than the Dutch market (5.3% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHARM's Return on Equity is forecast to be high in 3 years time (32.4%)


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: PHARM has large one-off items impacting its financial results.

Growing Profit Margin: PHARM's current net profit margins (22%) are higher than last year (-18.8%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: PHARM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: PHARM'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: PHARM's short term assets (€101.8M) exceeds its short term liabilities (€90.1M)

Long Term Liabilities: PHARM's short term assets (101.8M) exceeds its long term liabilities (40.2M)


Debt to Equity History and Analysis

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

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

Debt Coverage: PHARM's debt is well covered by operating cash flow (113.9%).

Interest Coverage: PHARM's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of Pharming Group's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Simon de Vries (60yo)

11yrs

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 ($USD1.49M) is about average for companies of similar size in the Dutch market ($USD1.19M).

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


Management Age and Tenure

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: PHARM's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

73yo

Average Age

Experienced Board: PHARM's board of directors are considered experienced (7 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€489,60017 May 19
Bruno M. Giannetti
EntityIndividual
Role
Member of Management Board
COO & Member of Management Board
Shares1,440,000
Max Price€0.34
Sell€820,95017 May 19
Bruno M. Giannetti
EntityIndividual
Role
Member of Management Board
COO & Member of Management Board
Shares1,052,500
Max Price€0.78

Ownership Breakdown

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


Management Team

  • Bruno M. Giannetti (67yo)

    COO & Member of Management Board

    • Tenure: 12.9yrs
    • Compensation: €839.00k
  • Simon de Vries (60yo)

    Chairman of Management Board & CEO

    • Tenure: 11yrs
    • Compensation: €1.36m
  • Robin Wright (55yo)

    CFO & Member of Management Board

    • Tenure: 4.1yrs
    • Compensation: €655.00k
  • Perry Calias (51yo)

    Chief Scientific Officer

    • Tenure: 4.8yrs
  • Anne-Marie de Groot (38yo)

    Senior Vice President of Organisational Development

    • Tenure: 5.8yrs
  • Paul Jansse (50yo)

    VP & Head of Non-US Commercial Operations

    • Tenure: 2.8yrs
  • Stephen Toor (48yo)

    Senior VP & GM of Pharming USA

    • Tenure: 2.8yrs
  • Erica Kerkvliet (51yo)

    Head of Research & Development

    • Tenure: 0yrs
  • Esther van Stralen (45yo)

    Head of Technical Operations

    • Tenure: 2.8yrs

Board Members

  • John Ward (81yo)

    Member of Board of Supervisory Directors

    • Tenure: 12.5yrs
    • Compensation: €68.00k
  • Paul Sekhri (61yo)

    Chairman of Board of Supervisory Directors

    • Tenure: 3.5yrs
    • Compensation: €80.00k
  • Juergen H. Ernst (80yo)

    Vice Chairman of the Board of Supervisory Directors

    • Tenure: 0yrs
    • Compensation: €68.00k
  • Aad de Winter (66yo)

    Member of Board of Supervisory Directors

    • Tenure: 10.6yrs
    • Compensation: €71.00k
  • D. Jorn

    Member of the Supervisor Board Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Pharming Group N.V.
  • Ticker: PHARM
  • Exchange: ENXTAM
  • Founded:
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €764.603m
  • Shares outstanding: 629.56m
  • 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

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 re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 20:34
End of Day Share Price2019/11/14 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.