MeritValue

Pharming Group N.V.

PHARdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Pharming Group N.V. earns about 497% on invested capital, but has diluted owners by 8% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.04 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$198.9M1$205.6M2$245.3M3$297.2M3$376.1M3
Net income$16M4$13.7M5−$10.5M6−$11.8M6$2.85M6
Operating cash flow$37.8M7$22.5M8−$17.3M9−$1.8M9$54.7M9
Capital expenditure$10.7M10$1.38M11$1.44M12$790,00012$749,00012
Free cash flow (derived)$27.1M7$21.1M8−$18.7M9−$2.59M9$54M9
Total debt—————
Cash & equivalents$191.9M13$207.3M14$61.7M14$54.9M14$145.3M14
Diluted shares648.7M656.3M671.1M680.3M701.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$3.95
your share of equity
Profit it earned you last year
$0.04
Free cash flow it threw off
$0.77
Debt you’d be carrying
—

10 shares is a claim on $3.95 of net worth that earned you $0.04 and generated $0.77 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
497% avg · 5y
FY21 1983%FY22 —FY23 -4%FY24 -0%FY25 9%

It earned an average 497% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 5y

Share count is up 8% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$0.04
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.85M
  • growthAssumed0.0%
Graham Number
$0.19
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001828316-24-000008 (RevenueFromContractsWithCustomers)
  2. 20-F · period ending 2022-12-31 · accession 0001828316-25-000017 (RevenueFromContractsWithCustomers)
  3. 20-F · period ending 2023-12-31 · accession 0001828316-26-000015 (RevenueFromContractsWithCustomers)
  4. 20-F · period ending 2021-12-31 · accession 0001828316-24-000008 (ProfitLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001828316-25-000017 (ProfitLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001828316-26-000015 (ProfitLossAttributableToOwnersOfParent)
  7. 20-F · period ending 2021-12-31 · accession 0001828316-24-000008 (CashFlowsFromUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001828316-25-000017 (CashFlowsFromUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001828316-26-000015 (CashFlowsFromUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001828316-24-000008 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  11. 20-F · period ending 2022-12-31 · accession 0001828316-25-000017 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  12. 20-F · period ending 2023-12-31 · accession 0001828316-26-000015 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  13. 20-F · period ending 2021-12-31 · accession 0001828316-25-000017 (CashAndCashEquivalents)
  14. 20-F · period ending 2022-12-31 · accession 0001828316-26-000015 (CashAndCashEquivalents)