LIGAND PHARMACEUTICALS (LGND) Fundamental Analysis & Valuation

NASDAQ:LGND • US53220K5048

Current stock price

204.81 USD
-5.68 (-2.7%)
At close:
204.81 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.

7

1. LGND Profitability Analysis

1.1 Basic Checks

  • LGND had positive earnings in the past year.
  • LGND had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: LGND reported negative net income in multiple years.
  • LGND had a positive operating cash flow in 4 of the past 5 years.
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 0 200M 400M 600M

1.2 Ratios

  • LGND's Return On Assets of 3.29% is amongst the best of the industry. LGND outperforms 83.33% of its industry peers.
  • With an excellent Return On Equity value of 5.11%, LGND belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 1.58%, LGND is doing good in the industry, outperforming 78.65% of the companies in the same industry.
  • LGND had an Average Return On Invested Capital over the past 3 years of 1.12%. This is significantly below the industry average of 12.98%.
  • The last Return On Invested Capital (1.58%) for LGND is above the 3 year average (1.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.29%
ROE 5.11%
ROIC 1.58%
ROA(3y)0.61%
ROA(5y)1.2%
ROE(3y)0.46%
ROE(5y)1.58%
ROIC(3y)1.12%
ROIC(5y)1.78%
LGND Yearly ROA, ROE, ROICLGND Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

  • With an excellent Profit Margin value of 19.34%, LGND belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
  • With an excellent Operating Margin value of 11.48%, LGND belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
  • LGND's Operating Margin has declined in the last couple of years.
  • LGND's Gross Margin of 94.27% is amongst the best of the industry. LGND outperforms 95.83% of its industry peers.
  • LGND's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.48%
PM (TTM) 19.34%
GM 94.27%
OM growth 3Y-21.5%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.37%
GM growth 5Y0.62%
LGND Yearly Profit, Operating, Gross MarginsLGND Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400 500

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7

2. LGND Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGND is destroying value.
  • LGND has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
LGND Yearly Shares OutstandingLGND Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B

2.2 Solvency

  • LGND has an Altman-Z score of 6.15. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 6.15, LGND belongs to the best of the industry, outperforming 80.73% of the companies in the same industry.
  • The Debt to FCF ratio of LGND is 14.48, which is on the high side as it means it would take LGND, 14.48 years of fcf income to pay off all of its debts.
  • LGND's Debt to FCF ratio of 14.48 is fine compared to the rest of the industry. LGND outperforms 77.08% of its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that LGND is not too dependend on debt financing.
  • LGND has a worse Debt to Equity ratio (0.47) than 60.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 14.48
Altman-Z 6.15
ROIC/WACC0.17
WACC9.39%
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 0 200M 400M 600M 800M

2.3 Liquidity

  • LGND has a Current Ratio of 24.69. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 24.69, LGND belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
  • A Quick Ratio of 24.30 indicates that LGND has no problem at all paying its short term obligations.
  • LGND has a better Quick ratio (24.30) than 92.71% of its industry peers.
Industry RankSector Rank
Current Ratio 24.69
Quick Ratio 24.3
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 200M 400M 600M 800M 1B

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

4

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.
  • LGND shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
EPS 1Y (TTM)40.81%
EPS 3Y23.39%
EPS 5Y12.06%
EPS Q2Q%59.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
  • The Revenue is expected to grow by 13.58% on average over the next years. This is quite good.
EPS Next Y5.61%
EPS Next 2Y10.48%
EPS Next 3Y9.34%
EPS Next 5Y12.98%
Revenue Next Year9.39%
Revenue Next 2Y14.11%
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.
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

  • With a Price/Earnings ratio of 25.47, LGND can be considered very expensive at the moment.
  • 80.21% of the companies in the same industry are more expensive than LGND, based on the Price/Earnings ratio.
  • LGND's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.23.
  • The Price/Forward Earnings ratio is 24.12, which indicates a rather expensive current valuation of LGND.
  • 76.04% of the companies in the same industry are more expensive than LGND, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of LGND to the average of the S&P500 Index (23.28), we can say LGND is valued inline with the index average.
Industry RankSector Rank
PE 25.47
Fwd PE 24.12
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

  • LGND's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LGND is cheaper than 76.04% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LGND is valued a bit cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 132.77
EV/EBITDA 54.78
LGND Per share dataLGND EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • LGND has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)2.11
EPS Next 2Y10.48%
EPS Next 3Y9.34%

More info and screens

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

0

5. LGND Dividend Analysis

5.1 Amount

  • LGND does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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LGND Fundamentals: All Metrics, Ratios and Statistics

LIGAND PHARMACEUTICALS

NASDAQ:LGND (3/20/2026, 8:05:55 PM)

After market: 204.81 0 (0%)

204.81

-5.68 (-2.7%)

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 Change1.9%
Market Cap4.08B
Revenue(TTM)N/A
Net Income(TTM)48.58M
Analysts85.71
Price Target248.31 (21.24%)
Short Float %7.09%
Short Ratio6.28
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)33.83%
Min EPS beat(2)10.36%
Max EPS beat(2)57.31%
EPS beat(4)4
Avg EPS beat(4)19.98%
Min EPS beat(4)4.63%
Max EPS beat(4)57.31%
EPS beat(8)8
Avg EPS beat(8)37.45%
EPS beat(12)12
Avg EPS beat(12)53.58%
EPS beat(16)15
Avg EPS beat(16)61.91%
Revenue beat(2)2
Avg Revenue beat(2)25.66%
Min Revenue beat(2)6.44%
Max Revenue beat(2)44.89%
Revenue beat(4)4
Avg Revenue beat(4)18.43%
Min Revenue beat(4)6.44%
Max Revenue beat(4)44.89%
Revenue beat(8)8
Avg Revenue beat(8)17.31%
Revenue beat(12)11
Avg Revenue beat(12)12.65%
Revenue beat(16)14
Avg Revenue beat(16)16.25%
PT rev (1m)0%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.71%
Valuation
Industry RankSector Rank
PE 25.47
Fwd PE 24.12
P/S 16.26
P/FCF 132.77
P/OCF 127.96
P/B 4.3
P/tB 9.99
EV/EBITDA 54.78
EPS(TTM)8.04
EY3.93%
EPS(NY)8.49
Fwd EY4.15%
FCF(TTM)1.54
FCFY0.75%
OCF(TTM)1.6
OCFY0.78%
SpS12.6
BVpS47.65
TBVpS20.5
PEG (NY)4.54
PEG (5Y)2.11
Graham Number92.84
Profitability
Industry RankSector Rank
ROA 3.29%
ROE 5.11%
ROCE 1.99%
ROIC 1.58%
ROICexc 2.92%
ROICexgc 9.48%
OM 11.48%
PM (TTM) 19.34%
GM 94.27%
FCFM 12.24%
ROA(3y)0.61%
ROA(5y)1.2%
ROE(3y)0.46%
ROE(5y)1.58%
ROIC(3y)1.12%
ROIC(5y)1.78%
ROICexc(3y)1.91%
ROICexc(5y)2.67%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)1.42%
ROCE(5y)2.25%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-16.87%
ROICexc growth 5YN/A
OM growth 3Y-21.5%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.37%
GM growth 5Y0.62%
F-Score5
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 14.48
Debt/EBITDA 7.07
Cap/Depr 3.38%
Cap/Sales 0.46%
Interest Coverage 96.15
Cash Conversion 50.63%
Profit Quality 63.32%
Current Ratio 24.69
Quick Ratio 24.3
Altman-Z 6.15
F-Score5
WACC9.39%
ROIC/WACC0.17
Cap/Depr(3y)71.95%
Cap/Depr(5y)50.12%
Cap/Sales(3y)19.71%
Cap/Sales(5y)12.95%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%39.37%
Revenue Next Year9.39%
Revenue Next 2Y14.11%
Revenue Next 3Y13.08%
Revenue Next 5Y13.58%
EBIT growth 1Y64.02%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year674.52%
EBIT Next 3Y155.76%
EBIT Next 5Y79.51%
FCF growth 1Y-61.26%
FCF growth 3Y10.8%
FCF growth 5YN/A
OCF growth 1Y-66.41%
OCF growth 3Y7.19%
OCF growth 5YN/A

LIGAND PHARMACEUTICALS / LGND Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 5 / 10 to LGND.


What is the valuation status of LIGAND PHARMACEUTICALS (LGND) stock?

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


How profitable is LIGAND PHARMACEUTICALS (LGND) stock?

LIGAND PHARMACEUTICALS (LGND) has a profitability rating of 7 / 10.


What is the financial health of LIGAND PHARMACEUTICALS (LGND) stock?

The financial health rating of LIGAND PHARMACEUTICALS (LGND) is 7 / 10.