PharmaNutra SpA (PHN) AI Stock Analysis

• Market Cap: €709.62M
• Dividend Yield: 1.86%
• Average Volume (3M): 25.97K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.44
• Revenue Growth: 12.82%
• EPS Growth: 7.37%
• Country: IT
• Employees: 118
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.62
• Shares Outstanding: 9,680,977
• 10 Day Avg. Volume: 12,507
• 30 Day Avg. Volume: 25,966
• PEG Ratio: 1.25
• Price to Book (P/B): 7.28
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 31.63
• 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: €82.67
• Price Target Upside: 12.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.48
• Revenue Forecast (FY): €151.99M

• Rating: 78 Outperform
• Price Target: €84.00 ▲(14.60% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strong underlying fundamentals (high margins/ROE and manageable leverage) and supportive technical momentum (price above key moving averages with positive MACD). This is tempered by valuation (P/E ~26 with only ~1.36% yield) and some fundamental quality risks from slowing growth and uneven cash-flow conversion.

Positive Factors

High profitability & returns

Sustained high operating and EBITDA margins plus strong ROE signal durable pricing power and efficient capital use. That margin cushion supports reinvestment, dividend capacity and resilience to cost shocks, underpinning long‑term shareholder return potential even if top‑line slows.

Diversified revenue model

A dual revenue mix—own branded nutraceuticals (notably iron formulations) and B2B contract manufacturing—reduces single‑channel dependency. Proprietary formulation know‑how enables product differentiation and licensing/third‑party revenue, strengthening medium‑term growth optionality and margin stability.

Improving leverage & equity growth

Lower leverage and rising equity enhance financial flexibility and lower refinancing risk, allowing management to invest in geographic expansion or R&D without overreliance on debt. This balance‑sheet improvement supports sustainable funding of strategic initiatives over months.

Negative Factors

Slowing revenue momentum

A marked deceleration to single‑digit growth after multi‑year expansion suggests market saturation, tougher competition or weaker product cadence. Persistently slower top‑line reduces capacity to fund organic investment and risks compressing margins or returns if cost structure is fixed.

Volatile cash‑flow conversion

Inconsistent FCF and historical negative periods indicate working‑capital swings or lumpy reinvestment needs. That volatility weakens predictability for capex, dividends and deleveraging plans, increasing reliance on external financing in downturns and elevating medium‑term execution risk.

Past willingness to lever for growth

The company's history of adding leverage during expansion shows a propensity to finance growth with debt. If growth weakens or margins swing, this behavioral pattern could pressure interest coverage and constrain strategic choices, raising medium‑term financial flexibility risk.

PharmaNutra SpA Business Overview & Revenue Model

Company Description

Pharmanutra S.p.A., a pharmaceutical and nutraceutical company, researches, designs, develops, and markets nutritional supplements and medical devices in Italy, rest of Europe, the Middle East, Far East, and internationally. The company also produces and markets pharmaceuticals, medical devices, OTC products, and nutraceuticals for pediatric sector; and produces and distributes raw materials and active ingredients for the food, pharmaceutical, and food supplement industries. Its products primarily include SiderAL, SiderAL Forte, SiderAL Folic, Cardio SiderAL, SiderAL Med, Cetilar Crema, Cetilar Patch, Tape, ApportAL, UltraMag, Gestalys DHA, Novomega, Bonecal, and DiKappa 2. The company distributes and sells its products through sales representatives, wholesalers, pharmacies, and para-pharmacies. Pharmanutra S.p.A. was founded in 2003 and is based in Pisa, Italy.

How the Company Makes Money

PharmaNutra makes money primarily by selling nutraceutical and medical nutrition products through a combination of (i) direct sales of its own branded portfolio and (ii) business-to-business supply/contract activities. A key revenue stream is the commercialization of its iron-based products (including formulations built around its proprietary iron technology), sold into consumer health channels (e.g., pharmacies and other healthcare/retail distribution, depending on the market) via the company’s sales organization and distribution partners. In addition, the group generates revenue from supplying products or providing development/manufacturing services to third parties (contract manufacturing/private label or ingredient/formulation-related supply where applicable). Earnings are supported by the mix of higher-value branded products, geographic expansion through distributors or local partners, and the ability to leverage proprietary technology across multiple product lines; if any material royalty, licensing, or specific partnership terms are required, null.

PharmaNutra SpA Financial Statement Overview

Summary

Strong profitability and returns (2025 operating margin ~23%, EBITDA margin ~26%, ROE ~28%) with manageable and improving leverage (debt/equity ~0.29). Offsetting this, revenue growth decelerated in 2025 (+3%) and both gross margin and cash-flow conversion have been volatile, with negative free cash flow in 2022–2023.

Income Statement

Revenue has compounded strongly over 2020–2025 (from ~€58.5m to ~€131.7m) with positive growth still in 2025 (+3.0% annually), although momentum has clearly cooled versus the prior two years. Profitability is a key strength: operating and EBITDA margins remain high (2025 operating margin ~23.0%, EBITDA margin ~26.0%) and net margin is solid (~15.2%). The main watchout is volatility in cost structure and reported gross margin (very high in 2024 vs much lower in 2025), which raises questions around mix, pricing, or accounting consistency and creates uncertainty around earnings quality.

Balance Sheet

Leverage looks manageable and improving: debt relative to equity declined steadily from 2023 to 2025 (to ~0.29), while equity grew over time (to ~€71.4m in 2025). Returns on shareholder capital are strong and consistent for the sector (mid-to-high 20% range in 2023–2025, ~28.0% in 2025). The key weakness is that debt rose materially from 2020–2023 before easing, so the business has shown a willingness to add leverage during expansion—worth monitoring if growth slows further.

Cash Flow

Cash generation is generally supportive: operating cash flow is healthy (about €19.6m in 2025) and free cash flow is positive in 2024–2025 with a sharp rebound versus prior years (2025 free cash flow up ~57%). Free cash flow also tracks earnings reasonably well in 2024–2025 (about 0.79–0.84x net income). The weakness is inconsistency—free cash flow was negative in 2022 and 2023, and operating cash flow has not consistently covered profit levels (coverage below 1.0 in 2022–2025), suggesting working-capital swings or higher reinvestment needs can pressure near-term cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	131.69M	116.15M	101.03M	83.39M	68.14M
Gross Profit	29.71M	82.79M	48.95M	30.17M	32.15M
EBITDA	34.21M	32.01M	26.53M	24.61M	19.84M
Net Income	20.00M	16.61M	12.83M	15.05M	13.77M
Balance Sheet
Total Assets	125.23M	117.47M	112.44M	100.16M	71.36M
Cash, Cash Equivalents and Short-Term Investments	30.61M	29.10M	25.12M	26.86M	33.94M
Total Debt	20.51M	24.27M	28.02M	17.73M	6.35M
Total Liabilities	53.99M	55.27M	58.04M	49.21M	26.27M
Stockholders Equity	71.35M	62.16M	54.41M	50.95M	45.08M
Cash Flow
Free Cash Flow	16.43M	16.25M	-1.16M	-8.69M	15.43M
Operating Cash Flow	19.56M	20.50M	12.09M	14.47M	20.41M
Investing Cash Flow	-3.36M	-2.21M	-14.70M	-23.71M	-5.54M
Financing Cash Flow	-13.12M	-21.59M	-516.00K	1.89M	-1.92M

PharmaNutra SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PHN, the sentiment is Positive. The current price of 73.3 is above the 20-day moving average (MA) of 67.57, above the 50-day MA of 64.80, and above the 200-day MA of 52.35, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 67.75 is Neutral, neither overbought nor oversold. The STOCH value of 66.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PHN.

PharmaNutra SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHN	78 Outperform	€709.62M	25.98	―	1.86%	12.82%	7.37%
PHIL	70 Outperform	€675.51M	-29.05	45.54%	―	3346.54%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%