Pharming Group N.V. (PHAR)
Valuation Overview•Is Pharming Group N.V. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 60/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
PHAR demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($30M) and minimal debt risk.
The company is driving exceptional top-line expansion (22.4% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (1.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $72.7M | +26.9% | +22.4% | +12.2% | +41.4% | |
| EBITDA | $5.6M | — | -0.9% | — | — | |
| Net Income | -$5.2M | +124.1% | -40.6% | — | — | |
| EPS (Diluted) | $-0.07 | +123.5% | -37.0% | -38.9% | — | |
| Free Cash Flow | $1.4M | +2003.3% | +34.0% | -6.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 80.2% | 88.6% | 89.3% | 86.3% |
| Operating Margin | 1.9% | 0.0% | 3.1% | 6.8% |
| Net Margin | 5.0% | -2.5% | 1.4% | -13.5% |
| FCF Margin | 0.0% | 1.5% | 5.0% | 7.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.05 | $-0.07 | -240.0% | ||
| Q1'26 | $0.15 | $0.07 | -53.3% | ||
| Q4'25 | $0.05 | $0.10 | +100.0% | ||
| Q3'25 | $-0.10 | $0.06 | +160.0% | ||
| Q2'25 | $-0.25 | $-0.22 | +12.0% | ||
| Q1'25 | $0.07 | $0.05 | -28.6% | ||
| Q4'24 | $0.01 | $-0.02 | -300.0% | ||
| Q3'24 | $-0.00 | $-0.01 | -400.0% |
Total return is +15.8% (1Y), lagging the benchmark by -5.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -24.3% | -31.6% | — |
| 1Y | +15.8% | -5.1% | — |
| 3YCAGR | +5.7% | -13.9% | — |
| 5YCAGR | +3.5% | -8.5% | — |
| 10YCAGR | -2.5% | -16.3% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Pharming Group N.V. (PHAR) valuation, health, and returns.
Based on peer relative multiples, Pharming Group N.V. appears Cheap versus peers compared to industry peers.
Pharming Group N.V. has multiple valuation anchors: Peer Relative Fair Value: $1421.16 | Wall Street Analyst Target: $38.00 (implying +184.9% upside). A convergence of these signals offers higher conviction.
Pharming Group N.V. displays good financial health with a composite quality score of 60/100, supported by a Altman Z-Score of 100.0 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 5.5%.
Pharming Group N.V. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Pharming Group N.V.'s current growth trajectory is Accelerating. The company achieved +26.9% 1Y revenue growth and +123.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +22.4%.
Wall Street consensus is Buy based on 2 analysts, beating EPS expectations in 33% of recent quarters with a -2-quarter streak. The consensus price target represents a +184.9% change from current levels.
Investment risks for Pharming Group N.V. include: -43.3% 1-year max drawdown. Volatility risk is characterized by a beta of 1.21x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.