PharmGen Science, Inc. engages in the research and development, production, and sale of pharmaceutical products in South Korea. It offers prescription drugs, OTC drugs, health food, and cosmetics. It offers its products in the form of tablet, hard capsule, granule and ointment, syrups, and suspension forms. The company was formerly known as Wooridul Pharmaceutical Limited and changed its name to PharmGen Science, Inc. PharmGen Science, Inc. was founded in 1961 and is headquartered in Hwaseong, South Korea.

Korea

PharmGen Science, Inc.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

004720.KS reported revenue of KRW 171 287mn in the last 12 months, up 3% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 58% from FY23 to KRW 153.95.

Over the last six months, the stock performance has varied, with an increase following a drop. When measured against its worldwide peers from the same industry (as shown above), the stock has been weaker, underperforming by 7ppts. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 15ppts and its growth decelerated by 2ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 18.9% in the last 12 months, up from 8.0% in FY23. 

Historically, 004720.KS has reported strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 1.6%, down from 3.4% in FY23. 

PharmGen Science, Inc. reported a return on equity (RoE) of 1.2% in the last 12 months, down from 2.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 1.0%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 0.8% in the last 12 months, a decrease from 1.8% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.7 in the past several years. This ratio implies a good shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

004720.KS has very poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and is average on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, poor working capital management, and inadequate interest coverage. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, 004720.KS is highly volatile. In other words, the stock will fall substantially more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be significant. 

In normal market circumstances, 004720.KS is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from large to substantial. 

Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITD. 

PharmGen Science, Inc.

₩ 4095

3

PharmGen Science, Inc.

₩ 4095

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₩ 4095

About

About

About

About