PHARPharming Group N.V.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.7×).
Operating profit is fully backed by cash.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PHAR?
Pharming Group N.V. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 6.5 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Biotechnology median −77% · fiscal year to FY2025
- Cash conversion
- 2.68×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 36% |
| FY2021 | 6.8% |
| FY2022 | 8.9% |
| FY2023 | −2.2% |
| FY2024 | −2.9% |
| FY2025 | 6.9% |
Details›
- Gross marginfiscal year to FY2025
- 88%
- Operating marginfiscal year to FY2025
- 6.9%
- Net marginfiscal year to FY2025
- 0.67%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 27%
- Revenue, trailing twelve months
- $376M
- Free cash flow, trailing twelve months
- $54M
- Net income, trailing twelve months
- $2.5M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.