Pharming Group N.V. ADS each representing 10 ordinary shares (PHAR)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Pharming as a small rare-disease drugmaker with two commercial products, RUCONEST and Joenja. The business has some attractive traits: a narrow patient focus, a 407-person workforce, trailing free cash flow of $34.4M, a 2.9% FCF yield, a debt-to-equity ratio of 0.42, and a very low beta of 0.07. Its Altman Z-score of 3.47 also suggests the balance sheet is not obviously distressed. But the operating picture is weak. In the latest quarter, 2026-Q2, revenue was $90.2M, net income was only $1.6M, and net margin was 1.82%. The supplied growth figures show revenue growth of -3.23% and profit growth of -65.10%. Returns are thin: ROE 3.65% and ROCE 3.47%, calculated by FairStock. Valuation is the hard part. At the 2026-10-13 close of $9.44, the market capitalization is $1.2B. FairStock shows a P/E of 67.43, P/B of 2.47, EV/EBITDA of 26.97, and a Graham Number of $1.09, implying a -766.06% margin of safety. The Piotroski F-score is 4/9. There is no Lynch category because only zero years of filed results were available, and the rule needs three. This is not a Graham bargain. It is a speculative bet on rare-disease products returning to growth and margins normalizing. The price already reflects much of that hope, while the latest numbers show little cushion.

In plain English: Pharming makes medicines for rare diseases, including RUCONEST and Joenja. The business looks weak right now: sales are shrinking, profit has fallen sharply, and the latest quarter's net income was very thin. At the recent price, the shares look expensive compared with the company's earnings and assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer