Share count
689Mpeak FY2025
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PHAR, Pharming Group N.V.
Pharming Group is a global biotechnology company that develops and commercializes innovative therapies for rare and ultra-rare diseases with significant unmet need.
RUCONEST , our first approved product, is the first and only recombinant C1 esterase inhibitor, or rhC1-INH, protein replacement therapy indicated for the treatment of acute hereditary angioedema, or HAE, attacks in adult and adolescent patients.
We currently commercialize Joenja in the United States and the United Kingdom through our own sales and marketing infrastructure.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$376M
+26.6% YoY · 12% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $376M 5-yr avg $265M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is RUCONEST (85%) and JOENJA (15%).
- Situation
- Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
- What moves the needle
- Gross margin has run about 89% and operating margin about 6.9% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −2.9% to 36% — on a steadier 89% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. The cash cycle has run negative through the cycle (a median of −207 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −3%, above 15% in 1 of 3 years). By owner earnings: roughly 14% of revenue reaches owners as cash, though it swings, and customers and suppliers fund the business through negative working capital. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →RUCONEST is 85% of revenue, with JOENJA the other meaningful line at 15%.
Revenue by product line, FY2025
- RUCONEST85%$318M
- JOENJA15%$58M
By geographyUnited States96%Europe and RoW4%
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2019–2025
realized figures from each filing · older years to the left| 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| $189M | $212M | $199M | $206M | $245M | $297M | $376M | $376M | RevenueRevenue |
| 87% | 89% | 89% | 91% | 90% | 88% | 88% | 88% | Gross marginGross mgn |
| $68M | $76M | $14M | $18M | ($5M) | ($9M) | $26M | $26M | Operating incomeOp. inc. |
| 36.0% | 35.9% | 6.8% | 8.9% | −2.2% | −2.9% | 6.9% | 6.9% | Operating marginOp. mgn |
| $41M | $38M | $16M | $14M | ($11M) | ($12M) | $3M | $3M | Net incomeNet inc. |
| 22% | 14% | 31% | 9% | — | — | — | — | Effective tax rateTax rate |
| Cash flow & returns | ||||||||
| $74M | $84M | $38M | $22M | ($17M) | ($2M) | $55M | $55M | Operating cash flowOp. cash |
| $5M | $6M | $6M | $2M | $2M | $2M | $1M | $6M | DepreciationDeprec. |
| $29M | $40M | $15M | $7M | ($8M) | $9M | $50M | $45M | Working capital & otherWC & other |
| $3M | $5M | $11M | $1M | $1M | $790K | $749K | $749K | CapexCapex |
| 1.4% | 2.2% | 5.4% | 0.7% | 0.6% | 0.3% | 0.2% | 0.2% | Capex / revenueCapex/rev |
| $72M | $79M | $31M | $21M | ($19M) | ($3M) | $54M | $54M | Owner earningsOwner earn. |
| 37.8% | 37.2% | 15.8% | 10.3% | −7.6% | −0.9% | 14.3% | 14.3% | Owner earnings marginOE mgn |
| $72M | $79M | $27M | $21M | ($19M) | ($3M) | $54M | $54M | Free cash flowFCF |
| 37.8% | 37.2% | 13.6% | 10.3% | −7.6% | −0.9% | 14.3% | 14.3% | Free cash flow marginFCF mgn |
| 123% | — | — | — | -3% | -4% | — | — | ROICROIC |
| 35% | 21% | 8% | 7% | -5% | -5% | 1% | 1% | Return on equityROE |
| 35% | 21% | 8% | 7% | −5% | −5% | 1% | 1% | Retained to equityRetained/eq |
| Balance sheet | ||||||||
| $74M | $205M | $192M | $207M | $62M | $55M | $145M | $145M | Cash & investmentsCash+inv |
| $29M | $36M | $30M | $28M | $46M | $55M | $55M | $55M | ReceivablesReceiv. |
| $16M | $21M | $27M | $42M | $57M | $56M | $65M | $65M | InventoryInvent. |
| $41M | $48M | $42M | $54M | $73M | $67M | $106M | $106M | Accounts payablePayables |
| $4M | $9M | $15M | $15M | $30M | $44M | $14M | $14M | Operating working capitalOper. WC |
| $119M | $263M | $249M | $278M | $316M | $278M | $299M | $299M | Current assetsCur. assets |
| $114M | $77M | $47M | $60M | $78M | $74M | $116M | $116M | Current liabilitiesCur. liab. |
| 1.0× | 3.4× | 5.3× | 4.6× | 4.1× | 3.8× | 2.6× | 2.6× | Current ratioCurr. ratio |
| $256M | $418M | $397M | $426M | $463M | $400M | $500M | $500M | Total assetsAssets |
| ($74M) | ($205M) | ($192M) | ($207M) | ($62M) | ($55M) | ($145M) | ($145M) | Net debt / (cash)Net debt |
| — | 1030.5× | 144.3× | 173.6× | -40.2× | -153.9× | 131.8× | 131.8× | Interest coverageInt. cov. |
| $117M | $183M | $193M | $205M | $219M | $221M | $277M | $277M | Shareholders’ equityEquity |
| Per share | ||||||||
| 626M | 636M | 642M | 649M | 657M | 671M | 689M | 702M | Shares out (diluted)Shares |
| $0.30 | $0.33 | $0.31 | $0.32 | $0.37 | $0.44 | $0.55 | $0.54 | Revenue / shareRev/sh |
| $0.06 | $0.06 | $0.02 | $0.02 | $-0.02 | $-0.02 | $0.00 | $0.00 | EPS (diluted)EPS |
| $0.11 | $0.12 | $0.05 | $0.03 | $-0.03 | $-0.00 | $0.08 | $0.08 | Owner earnings / shareOE/sh |
| $0.11 | $0.12 | $0.04 | $0.03 | $-0.03 | $-0.00 | $0.08 | $0.08 | Free cash flow / shareFCF/sh |
| $0.00 | $0.01 | $0.02 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | Cap. spending / shareCapex/sh |
| $0.19 | $0.29 | $0.30 | $0.32 | $0.33 | $0.33 | $0.40 | $0.39 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 6-yr | 5-yr | |
|---|---|---|
| Revenue / share | +10.4%/yr | +10.4%/yr |
| Owner earnings / share | −6.1%/yr | −8.8%/yr |
| EPS | −36.8%/yr | −41.3%/yr |
| Capital spending / share | −20.2%/yr | −31.7%/yr |
| Book value / share | +13.6%/yr | +6.9%/yr |
The record, charted
FY2019–2025Each measure over its full record; the current point and the worst year marked.
ROIC
−4%low FY2024
Gross margin
88%low FY2019
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
$54Mowner earningsvs.$3Mnet incomelow FY2023
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2019FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business turned $3M of profit into $54M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | $3M | ($12M) | ($11M) | $14M | $16M |
| Depreciation & amortizationnon-cash charge added back | +$1M | +$2M | +$2M | +$2M | +$6M |
| Working capital & othertiming of cash in and out, other non-cash items | +$50M | +$9M | −$8M | +$7M | +$15M |
| Cash from operations | $55M | ($2M) | ($17M) | $22M | $38M |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$749K | −$790K | −$1M | −$1M | −$6M |
| Owner earnings | $54M | ($3M) | ($19M) | $21M | $31M |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | — | — | — | — | −$4M |
| Free cash flow | $54M | ($3M) | ($19M) | $21M | $27M |
| Owner-earnings marginowner earnings ÷ revenue | 14% | -1% | -8% | 10% | 16% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? 131.8×ComfortableOperating income $26M ÷ interest expense $196K
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- Net cash, debt-freeCash $145M − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $145M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 53 + DIO 521 − DPO 850 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.
Is it a good business?
- Not enough dataIndustry peers: median -80%
What this means
The filing data didn't include the inputs for this check.
- Solid through the cycle7-yr median margin, range -8%–38%; latest $54M = operating cash $55M − maintenance capex $749KIndustry peers: median -48%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 14% of revenue this year, a 14% median across 7 years.
- Are earnings backed by cash? 19.19×Cash-backedCash from ops $55M ÷ net income $3M
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.12×HarvestingCapex $749K ÷ depreciation $6M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 1 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $376M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 2.59×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Earnings stability MissA profit every year (7-yr record) · 2 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth MissEarnings +33% over the record · −121%
What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.01/share (latest year $0.00), the averaged base the calculator's gate runs on, and book value is $0.39/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2019–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 5 of 7
What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
- Operating margin 26% → 1% (3-yr avg ends)
What this means
Through the cycle the operating margin slipped — about 26% early to 1% lately, median 7% — competition or costs are biting in.
- Owner earnings growth −16%/yr
What this means
Owner earnings shrank about 16% a year over the record.
- Worst year 2024 · −2.9% op. margin
What this means
Operations went underwater in 2024, understand why before trusting the good years.
- Share count +1.6%/yr
What this means
The share count is rising, dilution works against you on a per-share basis.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$299M
- Cash & short-term investments$145M
- Receivables$55M
- Inventory$65M
- Other current assets$35M
Current liabilities$116M
- Accounts payable$106M
- Other current liabilities$10M
Current ratio2.59×all current assets ÷ what's due · Graham looked for 2×
Quick ratio2.03×stricter: inventory excluded
Cash ratio1.25×strictest: cash alone against what's due
Working capital$184Mthe cushion left after near-term bills
Deeper floors
Tangible book value$142Mequity stripped of goodwill & intangibles
Debt incl. operating leases$18M$18M of it operating leases
From the company's latest filing.
How the cash was used, 2019–2025
Over the record, the business generated $254M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.
- Reinvested$22M · 9%
- Retained (debt / cash)$231M · 91%
- Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $71M.
- Net change in share count12.0%
The diluted count rose from 626M to 702M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
- Return on what it retained−56%
Of the earnings it kept rather than paid out ($88M over the span), annual owner earnings (first three years vs last three) fell $50M, so each retained $1 gave back about 0.56 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Inverting the record
Invert: instead of why Pharming Group N.V. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2019–2025.
3 of the 4 tests turned up something to look into; the other 1 came back clean.
- Look hereIs it less profitable than it was?1.9% vs 30.3%
The owner-earnings margin averaged 30.3% early in the record and 1.9% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
- Look hereDid the share count rise anyway?12.0%
Diluted shares grew 12.0% over 2019–2025. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.
- Look hereDid receivables and inventory outpace sales?24% → 32% of sales
Receivables and inventory grew from $45M to $120M while revenue grew 99%: working capital is climbing faster than sales (24% of revenue then, 32% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
And these came back clean
- Did reported profit become cash?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Pharmaceuticals
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| INVAInnoviva Inc. | $411M | — | 85.6% | 44% | 63% |
| ARDXArdelyx Inc. | $407M | 87% | -138.7% | -82% | -232% |
| ESPREsperion Therapeutics Inc. | $403M | — | -62.8% | — | -48% |
| PHARPharming Group N.V. | $376M | 89% | 6.9% | -3% | 14% |
| ARQTArcutis Biotherapeutics Inc. | $376M | 90% | -234.9% | -56% | -236% |
| AVIRAtea Pharmaceuticals Inc. | $351M | — | -51.5% | -80% | -38% |
| MNKDMannKind Corporation | $349M | 72% | -63.3% | — | -45% |
| CRMDCorMedix Inc. | $312M | 8% | -8961.5% | -202% | -7330% |
| Group median | — | 87% | -63.0% | -68% | -46% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares, each representing ten ordinary”; Pharming Group N.V. reports in USD, so every figure in this tool is stated per ADS so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Pharming Group N.V. has delivered.
$
Through the cycle, Pharming Group N.V. earns about $54M on its 14.3% median owner-earnings margin. This year’s 14.3% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25−1%/yr
Owner-earnings growth · ’19→’25−16%/yr
Owner-earnings growth · ’19→’25−16%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $54M on 70M shares outstanding, per the 20-F/A cover, as of 2025-12-31; net cash $145M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Pharming Group N.V. (PHAR), the owner's record," https://ownerscorecard.com/c/PHAR, data as of 2026-07-09.
Manual order: ← PFAI its page in the Manual PHG →
Industry order: ← PGEN the Pharmaceuticals chapter PHAT →