ENXTAM:PHARM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding track record and undervalued.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

PHARM

-13.6%

NL Biotechs

-2.9%

NL Market


1 Year Return

-19.1%

PHARM

-25.2%

NL Biotechs

-8.8%

NL Market

Return vs Industry: PHARM exceeded the Dutch Biotechs industry which returned -20.4% over the past year.

Return vs Market: PHARM underperformed the Dutch Market which returned -8.3% over the past year.


Shareholder returns

PHARMIndustryMarket
7 Day-1.7%-13.6%-2.9%
30 Day-0.6%-11.1%3.7%
90 Day-17.8%-39.2%-4.1%
1 Year-19.1%-19.1%-25.2%-25.2%-6.5%-8.8%
3 Year24.8%24.8%16.1%16.0%-0.8%-10.8%
5 Year198.4%196.2%54.0%49.4%27.0%3.9%

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?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHARM (€0.94) is trading below our estimate of fair value (€1.39)

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


Price To Earnings Ratio

PE vs Industry: PHARM is good value based on its PE Ratio (14.5x) compared to the XE Biotechs industry average (35.2x).

PE vs Market: PHARM is good value based on its PE Ratio (14.5x) compared to the Dutch market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: PHARM is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: PHARM's PB Ratio (4.7x) is in line with the XE Biotechs industry average.


Next Steps

Future Growth

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

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHARM's forecast earnings growth (28.3% per year) is above the savings rate (0.4%).

Earnings vs Market: PHARM's earnings (28.3% per year) are forecast to grow faster than the Dutch market (26.4% per year).

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

Revenue vs Market: PHARM's revenue (16.9% per year) is forecast to grow faster than the Dutch market (9.1% per year).

High Growth Revenue: PHARM's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PHARM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pharming Group performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHARM has high quality earnings.

Growing Profit Margin: PHARM's current net profit margins (22.7%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: PHARM has become profitable over the past 5 years, growing earnings by 33.3% per year.

Accelerating Growth: PHARM's earnings growth over the past year (35.3%) exceeds its 5-year average (33.3% per year).

Earnings vs Industry: PHARM earnings growth over the past year (35.3%) exceeded the Biotechs industry 3.1%.


Return on Equity

High ROE: PHARM's Return on Equity (31.9%) is considered high.


Next Steps

Financial Health

How is Pharming Group's financial position?


Financial Position Analysis

Short Term Liabilities: PHARM's short term assets (€195.4M) exceed its short term liabilities (€43.9M).

Long Term Liabilities: PHARM's short term assets (€195.4M) exceed its long term liabilities (€145.7M).


Debt to Equity History and Analysis

Debt Level: PHARM's debt to equity ratio (96.6%) is considered high.

Reducing Debt: PHARM's debt to equity ratio has increased from 1.2% to 96.6% over the past 5 years.

Debt Coverage: PHARM's debt is well covered by operating cash flow (66.7%).

Interest Coverage: PHARM's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

5.7yrs

Average management tenure


CEO

Simon de Vries (61 yo)

11.92yrs

Tenure

€1,408,000

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 ($USD1.67M) is above average for companies of similar size in the Dutch market ($USD1.28M).

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 & CEO11.92yrs€1.41m1.09%
€ 6.5m
Bruno M. Giannetti
Chief Medical Officer & Member of Management Board13.83yrs€868.00k0.30%
€ 1.8m
Mireille Sanders
Senior Vice President of Operations1.17yrsno datano data
Pericles Calias
Chief Scientific Officer5.67yrsno datano data
Anne-Marie de Groot
Senior Vice President of Organisational Development6.75yrsno datano data
Paul Jansse
VP & Head of Non-US Commercial Operations3.75yrsno datano data
Stephen Toor
Senior VP & GM of Americas Region3.75yrsno datano data

5.7yrs

Average Tenure

52yo

Average Age

Experienced Management: PHARM's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Ward
Independent Member of the Board of Supervisory Directors13.42yrs€66.00k0.037%
€ 223.1k
Paul Sekhri
Independent Chairman of the Board of Supervisory Directors4.42yrs€83.00k0.066%
€ 393.1k
Juergen H. Ernst
Independent Vice Chairman of the Board of Supervisory Directorsno data€68.00k0.069%
€ 414.9k
Deborah Jorn
Independent Member of the Board of Supervisory Directors1.42yrs€31.00kno data
Aad de Winter
Independent Member of the Board of Supervisory Directors11.5yrs€73.00k0.024%
€ 140.4k

8.0yrs

Average Tenure

67yo

Average Age

Experienced Board: PHARM's board of directors are considered experienced (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

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: €597.220m
  • Shares outstanding: 638.06m
  • 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 Analysis2020/10/21 21:21
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.