Pharma Mar SA (PHM) AI Stock Analysis

• Market Cap: €1.40B
• Dividend Yield: 1.04%
• Average Volume (3M): 74.16K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.96
• Revenue Growth: 7.35%
• EPS Growth: 5375.64%
• Country: ES
• Employees: 500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 18,000,000
• 10 Day Avg. Volume: 71,270
• 30 Day Avg. Volume: 74,161
• PEG Ratio: 0.02
• Price to Book (P/B): 6.72
• Price to Sales (P/S): 8.00
• P/FCF Ratio: -147.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €77.00 ▲(0.79% Upside)

Pharma Mar SA's overall stock score is driven by strong profitability and a stable financial position, but is offset by declining revenue growth and cash flow conversion issues. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Profitability

High profit margins indicate effective cost management and pricing power, contributing to long-term financial stability and competitiveness.

Cash Generation

Strong cash generation enhances financial flexibility, enabling reinvestment in R&D and strategic initiatives, supporting sustained growth.

Balance Sheet Health

A stable balance sheet with moderate leverage ensures resilience against economic downturns and supports long-term operational stability.

Negative Factors

Revenue Decline

Declining revenue growth can limit future profitability and market expansion, posing challenges to maintaining competitive market position.

Cash Flow Conversion

Low cash flow conversion indicates potential inefficiencies in converting income to cash, which may impact liquidity and investment capacity.

Revenue Growth Challenges

Challenges in revenue growth and cash flow conversion can hinder long-term growth prospects and strategic investment opportunities.

Pharma Mar SA Business Overview & Revenue Model

Company Description

Pharma Mar, S.A., a biopharmaceutical company, engages in the research, development, production, and commercialization of bio-active principles of marine origin for use in oncology in Spain, Italy, Germany, Ireland, rest of EU, the United States, and internationally. The company operates through three segments: Oncology, Diagnostics, and RNA interference. It develops and commercializes Yondelis for the treatment of soft tissue sarcomas and for ovarian cancer; Aplidin for treating multiple myeloma; and Zepzelca for treating patients with small cell lung cancer. The company also develops PM14 which is in phase II clinical trails for the treatment of solid tumors. In addition, it develops and markets diagnostics kits; and develops drugs with therapeutic activity based on reducing or silencing gene expression. The company was incorporated in 1986 and is based in Madrid, Spain.

How the Company Makes Money

Pharma Mar generates revenue primarily through the sales of its pharmaceutical products, particularly Aplidin and other oncology-related therapies. The company has established a revenue model that includes direct sales to healthcare providers and collaborations with other pharmaceutical companies for the development and commercialization of its drugs. Key revenue streams include royalties from licensing agreements, milestone payments from partners upon achieving specific development or sales targets, and potential product sales in various international markets. Additionally, Pharma Mar has engaged in strategic partnerships with major pharmaceutical companies to enhance its research capabilities and market reach, contributing to its earnings through collaborative development agreements.

Pharma Mar SA Financial Statement Overview

Summary

Pharma Mar SA demonstrates strong profitability with high gross and net profit margins. However, declining revenue growth and cash flow conversion issues pose challenges. The company maintains a healthy balance sheet with moderate leverage and strong equity.

Income Statement

Pharma Mar SA's income statement shows a strong gross profit margin of 94.98% TTM, indicating efficient cost management. However, the revenue growth rate has been negative in recent periods, with a decline of 5.28% TTM. The net profit margin improved to 22.20% TTM, reflecting better profitability compared to previous years. EBIT and EBITDA margins have also shown improvement, suggesting operational efficiency gains. Overall, while profitability metrics are strong, the declining revenue trend is a concern.

Balance Sheet

The balance sheet of Pharma Mar SA is stable, with a debt-to-equity ratio of 0.26 TTM, indicating moderate leverage. The return on equity is healthy at 21.28% TTM, showing effective use of shareholder funds. The equity ratio stands at 57.80% TTM, reflecting a solid equity base. Despite a slight increase in debt levels, the company's financial position remains robust, with a strong equity foundation.

Cash Flow

Pharma Mar SA's cash flow statement highlights a significant improvement in free cash flow growth, up by 1166.59% TTM, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.10 TTM, suggesting potential cash flow management issues. The free cash flow to net income ratio is also modest at 0.15 TTM. While cash flow generation has improved, the conversion of income to cash remains an area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.28M	174.85M	158.15M	196.34M	229.83M	269.96M
Gross Profit	167.47M	166.67M	148.54M	182.70M	213.39M	256.24M
EBITDA	38.30M	21.23M	4.55M	52.07M	104.08M	155.94M
Net Income	34.01M	26.13M	1.14M	49.36M	92.86M	137.26M
Balance Sheet
Total Assets	341.66M	349.64M	340.52M	393.26M	368.39M	330.26M
Cash, Cash Equivalents and Short-Term Investments	146.67M	154.53M	162.56M	182.42M	201.88M	195.52M
Total Debt	50.33M	51.08M	43.67M	42.63M	49.33M	56.66M
Total Liabilities	139.80M	141.28M	147.08M	170.30M	190.47M	227.54M
Stockholders Equity	197.51M	208.36M	193.44M	222.96M	177.92M	102.72M
Cash Flow
Free Cash Flow	16.23M	-9.48M	-29.40M	29.47M	17.87M	275.94M
Operating Cash Flow	21.24M	6.03M	-13.45M	38.32M	25.68M	278.94M
Investing Cash Flow	17.81M	1.03M	-43.05M	10.88M	18.47M	-119.01M
Financing Cash Flow	-24.68M	-5.35M	-32.14M	-13.37M	-27.41M	-73.82M

Pharma Mar SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:PHM, the sentiment is Negative. The current price of 76.4 is below the 20-day moving average (MA) of 79.74, below the 50-day MA of 77.23, and below the 200-day MA of 80.23, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 22.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:PHM.

Pharma Mar SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAE	78 Outperform	€1.63B	15.46	14.89%	3.51%	11.04%	8.29%
ROVI	74 Outperform	€3.64B	30.36	20.70%	1.50%	-9.39%	-25.92%
RJF	65 Neutral	€224.60M	50.46	2.03%	1.91%	-1.19%	-54.66%
ALM	60 Neutral	€2.71B	126.20	1.45%	1.22%	13.32%	―
PHM	57 Neutral	€1.40B	40.85	17.22%	1.04%	7.35%	5375.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%