Pharming Group N.V.
Pharming Group N.V. Fundamental Analysis
Pharming Group N.V. (PHAR) shows strong financial fundamentals with a PE ratio of 0.17, profit margin of 4.97%, and ROE of 21.00%. The company generates $107.5B in annual revenue with strong year-over-year growth of 36.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PHAR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPHAR demonstrates superior asset utilization.
Valuation Score
ExcellentPHAR trades at attractive valuation levels.
Growth Score
ModeratePHAR shows steady but slowing expansion.
Financial Health Score
ExcellentPHAR maintains a strong and stable balance sheet.
Profitability Score
ModeratePHAR maintains healthy but balanced margins.
Key Financial Metrics
Is PHAR Expensive or Cheap?
P/E Ratio
PHAR trades at 0.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PHAR's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Pharming Group N.V. at 3.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.14 times EBITDA. This is generally considered low.
How Well Does PHAR Make Money?
Net Profit Margin
For every $100 in sales, Pharming Group N.V. keeps $4.97 as profit after all expenses.
Operating Margin
Core operations generate 1.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.00 in profit for every $100 of shareholder equity.
ROA
Pharming Group N.V. generates $10.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pharming Group N.V. generates limited operating cash flow of $51.12M, signaling weaker underlying cash strength.
Free Cash Flow
Pharming Group N.V. generates weak or negative free cash flow of $50.41M, restricting financial flexibility.
FCF Per Share
Each share generates $0.71 in free cash annually.
FCF Yield
PHAR converts 5.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.009
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
21.00
vs 25 benchmark
ROA
Return on assets percentage
10.84
vs 25 benchmark
ROCE
Return on capital employed
5.38
vs 25 benchmark
How PHAR Stacks Against Its Sector Peers
| Metric | PHAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.17 | 28.62 | Better (Cheaper) |
| ROE | 2099.81% | 783.00% | Excellent |
| Net Margin | 4.97% | -48181.00% (disorted) | Weak |
| Debt/Equity | 0.43 | 0.39 | Neutral |
| Current Ratio | 2.63 | 4.12 | Strong Liquidity |
| ROA | 1084.47% | -21914.00% (disorted) | Strong |
PHAR outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROE, but lagging in Net Margin.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pharming Group N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
102.66%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-90.71%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-32.47%
Industry Style: Defensive, Growth, Innovation
Declining