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Pharmanutra

BIT:PHN
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PHN
BIT
€196M
Market Cap
  1. Home
  2. IT
  3. Household
Company description

Pharmanutra S.p.A., a pharmaceutical company, engages in the research, design, development, and marketing of nutraceutical supplements and medical devices in Europe, Asia, the United States, and Africa. The last earnings update was 6 days ago. More info.


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PHN Share Price and Events
7 Day Returns
19.9%
BIT:PHN
0.8%
Europe Personal Products
6.3%
IT Market
1 Year Returns
18.8%
BIT:PHN
-8.5%
Europe Personal Products
-24.1%
IT Market
PHN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pharmanutra (PHN) 19.9% -8.6% -13.7% 18.8% - -
Europe Personal Products 0.8% -8.2% -13.8% -8.5% 9.1% 21.5%
IT Market 6.3% -25.2% -28.7% -24.1% -21.9% -49.4%
1 Year Return vs Industry and Market
  • PHN outperformed the Personal Products industry which returned -8.5% over the past year.
  • PHN outperformed the Market in Italy which returned -24.1% over the past year.
Price Volatility
PHN
Industry
5yr Volatility vs Market

Value

 Is Pharmanutra undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Pharmanutra to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pharmanutra.

BIT:PHN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year IT Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:PHN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.2%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.599 (1 + (1- 24%) (3.27%))
0.741
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.21% + (0.8 * 8.23%)
7.79%

Discounted Cash Flow Calculation for BIT:PHN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pharmanutra is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BIT:PHN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.79%)
2020 8.30 Analyst x1 7.70
2021 9.00 Analyst x1 7.75
2022 11.90 Analyst x1 9.50
2023 13.70 Analyst x1 10.15
2024 14.99 Est @ 9.42% 10.30
2025 16.03 Est @ 6.96% 10.22
2026 16.87 Est @ 5.24% 9.98
2027 17.55 Est @ 4.03% 9.63
2028 18.11 Est @ 3.18% 9.22
2029 18.58 Est @ 2.59% 8.77
Present value of next 10 years cash flows €93.00
BIT:PHN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €18.58 × (1 + 1.21%) ÷ (7.79% – 1.21%)
€285.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €285.64 ÷ (1 + 7.79%)10
€134.86
BIT:PHN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €93.00 + €134.86
€227.86
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €227.86 / 9.68
€23.54
BIT:PHN Discount to Share Price
Calculation Result
Value per share (EUR) From above. €23.54
Current discount Discount to share price of €20.20
= -1 x (€20.20 - €23.54) / €23.54
14.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Pharmanutra is available for.
Intrinsic value
14%
Share price is €20.2 vs Future cash flow value of €23.54
Current Discount Checks
For Pharmanutra to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Pharmanutra's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Pharmanutra's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pharmanutra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pharmanutra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:PHN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €0.93
BIT:PHN Share Price ** BIT (2020-03-27) in EUR €20.2
Europe Personal Products Industry PE Ratio Median Figure of 27 Publicly-Listed Personal Products Companies 19.82x
Italy Market PE Ratio Median Figure of 247 Publicly-Listed Companies 12.46x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pharmanutra.

BIT:PHN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:PHN Share Price ÷ EPS (both in EUR)

= 20.2 ÷ 0.93

21.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pharmanutra is overvalued based on earnings compared to the Europe Personal Products industry average.
  • Pharmanutra is overvalued based on earnings compared to the Italy market.
Price based on expected Growth
Does Pharmanutra's expected growth come at a high price?
Raw Data
BIT:PHN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
14%per year
Europe Personal Products Industry PEG Ratio Median Figure of 14 Publicly-Listed Personal Products Companies 1.34x
Italy Market PEG Ratio Median Figure of 157 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

BIT:PHN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.8x ÷ 14%

1.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pharmanutra is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Pharmanutra's assets?
Raw Data
BIT:PHN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €2.43
BIT:PHN Share Price * BIT (2020-03-27) in EUR €20.2
Europe Personal Products Industry PB Ratio Median Figure of 41 Publicly-Listed Personal Products Companies 1.71x
Italy Market PB Ratio Median Figure of 323 Publicly-Listed Companies 1.15x
BIT:PHN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:PHN Share Price ÷ Book Value per Share (both in EUR)

= 20.2 ÷ 2.43

8.3x

* Primary Listing of Pharmanutra.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pharmanutra is overvalued based on assets compared to the Europe Personal Products industry average.
X
Value checks
We assess Pharmanutra's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Pharmanutra has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Pharmanutra expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pharmanutra expected to grow at an attractive rate?
  • Pharmanutra's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Pharmanutra's earnings growth is expected to exceed the Italy market average.
  • Pharmanutra's revenue growth is expected to exceed the Italy market average.
Annual Growth Rates Comparison
Raw Data
BIT:PHN Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:PHN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 14%
BIT:PHN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 10.1%
Europe Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
Europe Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Italy Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Italy Market Revenue Growth Rate Market Cap Weighted Average 1.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:PHN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:PHN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 66 12 11 1
2020-12-31 60 11 10 1
2020-03-29
BIT:PHN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 54 12 8
2019-09-30 53 10 9
2019-06-30 51 9 9
2019-03-31 49 8 9
2018-12-31 48 6 9
2018-09-30 45 6 8
2018-06-30 41 6 7
2018-03-31 40 6 6
2017-12-31 38 6 6
2017-09-30 37 5
2017-06-30 35 5
2017-03-31 34 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pharmanutra's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
  • Pharmanutra's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:PHN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Pharmanutra Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:PHN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.16 1.16 1.16 1.00
2020-12-31 1.02 1.02 1.02 1.00
2020-03-29
BIT:PHN Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31
2019-09-30
2019-06-30 0.93
2019-03-31 0.91
2018-12-31 0.88
2018-09-30 0.79
2018-06-30 0.69
2018-03-31 0.66
2017-12-31 0.62
2017-09-30 0.56
2017-06-30 0.59
2017-03-31 0.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Pharmanutra is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Pharmanutra's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pharmanutra has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Pharmanutra performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pharmanutra's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Pharmanutra has delivered over 20% year on year earnings growth in the past 5 years.
  • Pharmanutra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Pharmanutra's 1-year earnings growth is negative, it can't be compared to the Europe Personal Products industry average.
Earnings and Revenue History
Pharmanutra's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pharmanutra Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:PHN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 54.21 8.45 3.27
2019-09-30 52.61 8.71 5.46
2019-06-30 51.01 8.97 8.69
2019-03-31 49.49 8.76 8.15
2018-12-31 47.97 8.56 7.61
2018-09-30 44.71 7.62 8.04
2018-06-30 41.46 6.68 7.42
2018-03-31 39.63 6.35 6.62
2017-12-31 37.81 6.03 5.83
2017-09-30 36.56 5.39 5.59
2017-06-30 35.32 4.75 5.36
2017-03-31 34.16 4.30 5.22
2016-12-31 33.00 3.85 5.08
2015-12-31 26.25 2.57 4.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Pharmanutra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Pharmanutra used its assets more efficiently than the Europe Personal Products industry average last year based on Return on Assets.
  • Pharmanutra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Pharmanutra's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pharmanutra has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Pharmanutra's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pharmanutra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pharmanutra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pharmanutra's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Pharmanutra's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Pharmanutra Company Filings, last reported 2 months ago.

BIT:PHN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 28.13 6.40 18.83
2019-09-30 28.13 6.40 18.83
2019-06-30 23.57 4.29 14.62
2019-03-31 23.57 4.29 14.62
2018-12-31 24.44 5.34 15.83
2018-09-30 24.44 5.34 15.83
2018-06-30 19.47 4.85 12.86
2018-03-31 19.47 4.85 12.86
2017-12-31 19.10 5.61 14.06
2017-09-30 19.10 5.61 14.06
2017-06-30 7.88 6.00 4.29
2017-03-31 7.88 6.00 4.29
2016-12-31 6.65 4.85 2.58
2015-12-31 4.09 5.65 0.74
  • Pharmanutra's level of debt (20%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Pharmanutra's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (213.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 1743.4x coverage).
X
Financial health checks
We assess Pharmanutra's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pharmanutra has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Pharmanutra's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.28%
Current annual income from Pharmanutra dividends. Estimated to be 2.7% next year.
If you bought €2,000 of Pharmanutra shares you are expected to receive €46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Pharmanutra's pays a lower dividend yield than the bottom 25% of dividend payers in Italy (2.52%).
  • Pharmanutra's dividend is below the markets top 25% of dividend payers in Italy (5.88%).
Upcoming dividend payment

Purchase Pharmanutra before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:PHN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.6%
Italy Market Average Dividend Yield Market Cap Weighted Average of 167 Stocks 6%
Italy Minimum Threshold Dividend Yield 10th Percentile 1.4%
Italy Bottom 25% Dividend Yield 25th Percentile 2.5%
Italy Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:PHN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.58 1.00
2020-12-31 0.51 1.00
2020-03-29
BIT:PHN Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-03-23 0.460 2.346
2019-04-01 0.420 2.071
2019-03-13 0.420 2.519
2018-09-28 0.330 2.079
2018-04-06 0.330 2.301

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Pharmanutra has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Pharmanutra only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Pharmanutra's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Pharmanutra's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pharmanutra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pharmanutra has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Pharmanutra's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrea Lacorte
AGE 59
CEO Bio

Mr. Andrea Lacorte serves as the Chairman & General Director of Pharmanutra S.p.A. Between 1983 and 1997 Mr. Lacorte held a number of positions: (i) Commercial agent at Petrini S.p.A. (1982-1983); (ii) Director at the agro-business Valentina Nuova (1984-1986); (iii) Product Manager at Petrini S.p.A., with a particular focus on nutrition (1986-1988); (iv) Commercial Director and, subsequently, General Manager of S.I.M.B. S.r.l.. (1988-1997). He has been the Chairman – while is also the founder – since 1997 of Nutristar S.p.A. Mr. Lacorte, after carrying out extensive research in the fields of nutrition and human lipidology, in addition contributed to the foundation of (i) Alesco S.r.l. (in 2000), holding the position of Vice Chairman of the Board of Directors until now and (ii) Pharmanutra S.p.A. (in 2003), acting until now as Chairman. Since 2011, he has been Vice Chairman of the Board of Directors of Junia Pharma. He has carried out research and created sucrosomial solutions with human application. Mr. Lacorte graduated cum laude in Veterinary Medicine in 1982 from the University of Pisa.

CEO Compensation
  • Insufficient data for Andrea to compare compensation growth.
  • Insufficient data for Andrea to establish whether their remuneration is reasonable compared to companies of similar size in Italy.
Management Team

Andrea Lacorte

TITLE
Chairman & General Director
AGE
59

Roberto Lacorte

TITLE
Vice Chairman
AGE
51

Carlo Volpi

TITLE
Delegate Advisor
TENURE
1.2 yrs

Germano Tarantino

TITLE
Scientific Director & Executive Director
AGE
40

Giovanni Bucarelli

TITLE
Executive Director
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Pharmanutra board of directors in years:

7.2
Average Tenure
51
Average Age
  • The tenure for the Pharmanutra board of directors is about average.
Board of Directors

Andrea Lacorte

TITLE
Chairman & General Director
AGE
59

Roberto Lacorte

TITLE
Vice Chairman
AGE
51

Carlo Volpi

TITLE
Delegate Advisor

Germano Tarantino

TITLE
Scientific Director & Executive Director
AGE
40
TENURE
9.2 yrs

Giovanni Bucarelli

TITLE
Executive Director
TENURE
1.2 yrs

Michele Lorenzini

TITLE
Chairman of the Board of Statutory Auditors
TENURE
7.2 yrs

Alessandro Calzolari

TITLE
Independent Director

Simone Strocchi

TITLE
Non-Executive Director

Giuseppe Turchetti

TITLE
Independent Director

Guido Carugi

TITLE
Statutory Auditor
TENURE
7.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Pharmanutra's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pharmanutra has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

We Think Pharmanutra (BIT:PHN) Can Manage Its Debt With Ease

While Pharmanutra has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … This free cash flow puts the company in a good position to pay down debt, when appropriate. … Summing up While it is always sensible to investigate a company's debt, in this case Pharmanutra has €10m in net cash and a decent-looking balance sheet.

Simply Wall St -

Calculating The Fair Value Of Pharmanutra S.p.A. (BIT:PHN)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (€, Millions) €8.5m €10.0m €11.2m €12.3m €13.2m €14.0m €14.7m €15.4m €16.0m €16.6m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 12.24% Est @ 9.45% Est @ 7.49% Est @ 6.13% Est @ 5.17% Est @ 4.5% Est @ 4.03% Est @ 3.7% Present Value (€, Millions) Discounted @ 10.51% €7.7 €8.2 €8.3 €8.2 €8.0 €7.7 €7.3 €6.9 €6.5 €6.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= €75.0m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = €17m × (1 + 2.9%) ÷ (10.5% – 2.9%) = €226m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = €€226m ÷ ( 1 + 10.5%)10 = €83.11m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €158.14m.

Simply Wall St -

If You Had Bought Pharmanutra (BIT:PHN) Stock A Year Ago, You Could Pocket A 32% Gain Today

(BIT:PHN) share price is up 32% in the last year, clearly besting than the market return of around -4.0% (not including dividends). … During the last year Pharmanutra grew its earnings per share (EPS) by 42%. … We note that for Pharmanutra the TSR over the last year was 36%, which is better than the share price return mentioned above.

Simply Wall St -

Do Institutions Own Pharmanutra S.p.A. (BIT:PHN) Shares?

Pharmanutra is a smaller company with a market capitalization of €194m, so it may still be flying under the radar of many institutional investors. … We can see that Pharmanutra does have institutional investors; and they hold 10% of the stock. … Insider Ownership Of Pharmanutra The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

A Look At Pharmanutra S.p.A.'s (BIT:PHN) Exceptional Fundamentals

Excellent balance sheet with reasonable growth potential PHN’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 68% in the upcoming year. … This indicates that PHN has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. … PHN's has produced operating cash levels of 1.2x total debt over the past year, which implies that PHN's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Simply Wall St -

Are Pharmanutra S.p.A.’s (BIT:PHN) High Returns Really That Great?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Pharmanutra: 0.42 = €12m ÷ (€41m - €13m) (Based on the trailing twelve months to December 2018.) So, Pharmanutra has an ROCE of 42%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should Pharmanutra S.p.A. (BIT:PHN) Be Part Of Your Dividend Portfolio?

(BIT:PHN) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. Pharmanutra has only been paying a dividend for a year or so, so investors might be curious about its 2.4% yield. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. … We were also glad to see it growing earnings, although its dividend history is not as long as we'd like.

Simply Wall St -

Can Pharmanutra S.p.A.'s (BIT:PHN) ROE Continue To Surpass The Industry Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Pharmanutra: 35% = €8.6m ÷ €24m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Pharmanutra's Debt And Its 35% Return On Equity While Pharmanutra does have some debt, with debt to equity of just 0.22, we wouldn't say debt is excessive. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

4 Days Left Until Pharmanutra S.p.A. (BIT:PHN) Trades Ex-Dividend

(BIT:PHN): The dividend payment of €0.50 per share will be distributed to shareholders on 08 May 2019, and the stock will begin trading ex-dividend at an earlier date, 06 May 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Pharmanutra's latest financial data to analyse its dividend characteristics. … 5 questions I ask before picking a dividend stock?

Simply Wall St -

Estimating The Fair Value Of Pharmanutra S.p.A. (BIT:PHN)

We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Company Info

Description

Pharmanutra S.p.A., a pharmaceutical company, engages in the research, design, development, and marketing of nutraceutical supplements and medical devices in Europe, Asia, the United States, and Africa. It also manufactures and distributes active ingredients for the pharmaceutical, food, and dietary supplement industry; and develops and distributes drugs, medical devices, OTC products, and nutritional supplements with focus on the pediatric area. The company distributes and sells its products through sales representatives and wholesalers to pharmacies and para-pharmacies. Pharmanutra S.p.A. was founded in 2003 and is based in Pisa, Italy.

Details
Name: Pharmanutra S.p.A.
PHN
Exchange: BIT
Founded: 2003
€195,555,735
9,680,977
Website: http://www.pharmanutra.it
Address: Pharmanutra S.p.A.
Via Delle Lenze, 216/b,
Pisa,
Pisa, 56122,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT PHN Ordinary Shares Borsa Italiana IT EUR 18. Jul 2017
Number of employees
Current staff
Staff numbers
51
Pharmanutra employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 23:39
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2019/09/18
Last earnings filing: 2020/03/23
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.