LIGAND PHARMACEUTICALS (LGND) Fundamental Analysis & Valuation

NASDAQ:LGND • US53220K5048

Current stock price

199.65 USD
+7.01 (+3.64%)
At close:
199.65 USD
0 (0%)
After Hours:

This LGND fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. LGND Profitability Analysis

1.1 Basic Checks

  • LGND had positive earnings in the past year.
  • In the past year LGND had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: LGND reported negative net income in multiple years.
  • In the past 5 years LGND always reported a positive cash flow from operatings.
LGND Yearly Net Income VS EBIT VS OCF VS FCFLGND Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

1.2 Ratios

  • LGND's Return On Assets of 7.97% is amongst the best of the industry. LGND outperforms 89.06% of its industry peers.
  • LGND has a Return On Equity of 12.23%. This is amongst the best in the industry. LGND outperforms 86.46% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 2.45%, LGND is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 13.06%.
  • The 3 year average ROIC (1.82%) for LGND is below the current ROIC(2.45%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.97%
ROE 12.23%
ROIC 2.45%
ROA(3y)4.72%
ROA(5y)2.84%
ROE(3y)6.4%
ROE(5y)4.11%
ROIC(3y)1.82%
ROIC(5y)2.16%
LGND Yearly ROA, ROE, ROICLGND Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

1.3 Margins

  • LGND's Profit Margin of 46.42% is amongst the best of the industry. LGND outperforms 96.88% of its industry peers.
  • The Operating Margin of LGND (17.61%) is better than 85.94% of its industry peers.
  • In the last couple of years the Operating Margin of LGND has grown nicely.
  • Looking at the Gross Margin, with a value of 94.57%, LGND belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
  • LGND's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 17.61%
PM (TTM) 46.42%
GM 94.57%
OM growth 3Y125.81%
OM growth 5Y30.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.97%
GM growth 5Y2.47%
LGND Yearly Profit, Operating, Gross MarginsLGND Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 200 300 400 500

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6

2. LGND Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LGND is destroying value.
  • The number of shares outstanding for LGND has been increased compared to 1 year ago.
  • The number of shares outstanding for LGND has been increased compared to 5 years ago.
  • LGND has a worse debt/assets ratio than last year.
LGND Yearly Shares OutstandingLGND Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M
LGND Yearly Total Debt VS Total AssetsLGND Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • LGND has an Altman-Z score of 5.67. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
  • LGND has a Altman-Z score of 5.67. This is amongst the best in the industry. LGND outperforms 80.73% of its industry peers.
  • The Debt to FCF ratio of LGND is 9.12, which is on the high side as it means it would take LGND, 9.12 years of fcf income to pay off all of its debts.
  • LGND has a Debt to FCF ratio of 9.12. This is in the better half of the industry: LGND outperforms 78.65% of its industry peers.
  • LGND has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
  • LGND has a Debt to Equity ratio of 0.44. This is in the lower half of the industry: LGND underperforms 61.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 9.12
Altman-Z 5.67
ROIC/WACC0.27
WACC9.06%
LGND Yearly LT Debt VS Equity VS FCFLGND Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 22.23 indicates that LGND has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 22.23, LGND belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
  • LGND has a Quick Ratio of 21.98. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
  • LGND has a Quick ratio of 21.98. This is amongst the best in the industry. LGND outperforms 92.71% of its industry peers.
Industry RankSector Rank
Current Ratio 22.23
Quick Ratio 21.98
LGND Yearly Current Assets VS Current LiabilitesLGND Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. LGND Growth Analysis

3.1 Past

  • LGND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.81%, which is quite impressive.
  • Measured over the past years, LGND shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.06% on average per year.
  • Looking at the last year, LGND shows a very strong growth in Revenue. The Revenue has grown by 60.40%.
  • The Revenue has been growing slightly by 7.54% on average over the past years.
EPS 1Y (TTM)40.81%
EPS 3Y23.39%
EPS 5Y12.06%
EPS Q2Q%59.06%
Revenue 1Y (TTM)60.4%
Revenue growth 3Y10.97%
Revenue growth 5Y7.54%
Sales Q2Q%39.37%

3.2 Future

  • Based on estimates for the next years, LGND will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.98% on average per year.
  • LGND is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.58% yearly.
EPS Next Y5.61%
EPS Next 2Y10.48%
EPS Next 3Y9.34%
EPS Next 5Y12.98%
Revenue Next Year10.22%
Revenue Next 2Y14.18%
Revenue Next 3Y13.08%
Revenue Next 5Y13.58%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
LGND Yearly Revenue VS EstimatesLGND Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200M 400M 600M
LGND Yearly EPS VS EstimatesLGND Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15

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4

4. LGND Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 24.83, which indicates a rather expensive current valuation of LGND.
  • LGND's Price/Earnings ratio is rather cheap when compared to the industry. LGND is cheaper than 80.21% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.35. LGND is around the same levels.
  • Based on the Price/Forward Earnings ratio of 23.51, the valuation of LGND can be described as rather expensive.
  • 76.04% of the companies in the same industry are more expensive than LGND, based on the Price/Forward Earnings ratio.
  • LGND's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.61.
Industry RankSector Rank
PE 24.83
Fwd PE 23.51
LGND Price Earnings VS Forward Price EarningsLGND Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LGND indicates a somewhat cheap valuation: LGND is cheaper than 76.04% of the companies listed in the same industry.
  • LGND's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LGND is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 81.4
EV/EBITDA 36.99
LGND Per share dataLGND EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LGND does not grow enough to justify the current Price/Earnings ratio.
  • LGND has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.42
PEG (5Y)2.06
EPS Next 2Y10.48%
EPS Next 3Y9.34%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LGND Dividend Analysis

5.1 Amount

  • No dividends for LGND!.
Industry RankSector Rank
Dividend Yield 0%

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LGND Fundamentals: All Metrics, Ratios and Statistics

LIGAND PHARMACEUTICALS

NASDAQ:LGND (3/31/2026, 5:55:53 PM)

After market: 199.65 0 (0%)

199.65

+7.01 (+3.64%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners106.63%
Inst Owner Change-42.5%
Ins Owners1.81%
Ins Owner Change2.61%
Market Cap3.98B
Revenue(TTM)268.09M
Net Income(TTM)124.45M
Analysts85.71
Price Target250 (25.22%)
Short Float %7.49%
Short Ratio6.83
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.08%
Min EPS beat(2)26.84%
Max EPS beat(2)57.31%
EPS beat(4)4
Avg EPS beat(4)25.53%
Min EPS beat(4)7.61%
Max EPS beat(4)57.31%
EPS beat(8)8
Avg EPS beat(8)27.71%
EPS beat(12)12
Avg EPS beat(12)54.84%
EPS beat(16)15
Avg EPS beat(16)61.79%
Revenue beat(2)2
Avg Revenue beat(2)25.06%
Min Revenue beat(2)5.23%
Max Revenue beat(2)44.89%
Revenue beat(4)4
Avg Revenue beat(4)17.85%
Min Revenue beat(4)5.23%
Max Revenue beat(4)44.89%
Revenue beat(8)8
Avg Revenue beat(8)17.07%
Revenue beat(12)12
Avg Revenue beat(12)15.78%
Revenue beat(16)14
Avg Revenue beat(16)16.03%
PT rev (1m)0.68%
PT rev (3m)0.68%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 24.83
Fwd PE 23.51
P/S 14.85
P/FCF 81.4
P/OCF 80.65
P/B 3.91
P/tB 8.07
EV/EBITDA 36.99
EPS(TTM)8.04
EY4.03%
EPS(NY)8.49
Fwd EY4.25%
FCF(TTM)2.45
FCFY1.23%
OCF(TTM)2.48
OCFY1.24%
SpS13.44
BVpS51.01
TBVpS24.74
PEG (NY)4.42
PEG (5Y)2.06
Graham Number96.06
Profitability
Industry RankSector Rank
ROA 7.97%
ROE 12.23%
ROCE 3.1%
ROIC 2.45%
ROICexc 4.72%
ROICexgc 14.03%
OM 17.61%
PM (TTM) 46.42%
GM 94.57%
FCFM 18.24%
ROA(3y)4.72%
ROA(5y)2.84%
ROE(3y)6.4%
ROE(5y)4.11%
ROIC(3y)1.82%
ROIC(5y)2.16%
ROICexc(3y)3.31%
ROICexc(5y)3.45%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.31%
ROCE(5y)2.73%
ROICexgc growth 3YN/A
ROICexgc growth 5Y2.34%
ROICexc growth 3Y108.05%
ROICexc growth 5Y42.36%
OM growth 3Y125.81%
OM growth 5Y30.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.97%
GM growth 5Y2.47%
F-Score5
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 9.12
Debt/EBITDA 5.51
Cap/Depr 1.34%
Cap/Sales 0.17%
Interest Coverage 147.04
Cash Conversion 60.96%
Profit Quality 39.3%
Current Ratio 22.23
Quick Ratio 21.98
Altman-Z 5.67
F-Score5
WACC9.06%
ROIC/WACC0.27
Cap/Depr(3y)60.81%
Cap/Depr(5y)46.88%
Cap/Sales(3y)16.73%
Cap/Sales(5y)12.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.81%
EPS 3Y23.39%
EPS 5Y12.06%
EPS Q2Q%59.06%
EPS Next Y5.61%
EPS Next 2Y10.48%
EPS Next 3Y9.34%
EPS Next 5Y12.98%
Revenue 1Y (TTM)60.4%
Revenue growth 3Y10.97%
Revenue growth 5Y7.54%
Sales Q2Q%39.37%
Revenue Next Year10.22%
Revenue Next 2Y14.18%
Revenue Next 3Y13.08%
Revenue Next 5Y13.58%
EBIT growth 1Y108.55%
EBIT growth 3Y150.57%
EBIT growth 5Y40.24%
EBIT Next Year256.46%
EBIT Next 3Y62.3%
EBIT Next 5Y45.87%
FCF growth 1Y-48.64%
FCF growth 3Y-25.86%
FCF growth 5Y-0.48%
OCF growth 1Y-49.14%
OCF growth 3Y-29%
OCF growth 5Y-2%

LIGAND PHARMACEUTICALS / LGND Fundamental Analysis FAQ

What is the ChartMill fundamental rating of LIGAND PHARMACEUTICALS (LGND) stock?

ChartMill assigns a fundamental rating of 6 / 10 to LGND.


What is the valuation status for LGND stock?

ChartMill assigns a valuation rating of 4 / 10 to LIGAND PHARMACEUTICALS (LGND). This can be considered as Fairly Valued.


Can you provide the profitability details for LIGAND PHARMACEUTICALS?

LIGAND PHARMACEUTICALS (LGND) has a profitability rating of 8 / 10.


Can you provide the financial health for LGND stock?

The financial health rating of LIGAND PHARMACEUTICALS (LGND) is 6 / 10.


What is the earnings growth outlook for LIGAND PHARMACEUTICALS?

The Earnings per Share (EPS) of LIGAND PHARMACEUTICALS (LGND) is expected to grow by 5.61% in the next year.