LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis
NASDAQ:LGND • US53220K5048
189.94 USD
+2.43 (+1.3%)
At close: Feb 18, 2026
189.94 USD
0 (0%)
After Hours: 2/18/2026, 8:00:02 PM
Taking everything into account, LGND scores 6 out of 10 in our fundamental rating. LGND was compared to 191 industry peers in the Pharmaceuticals industry. While LGND belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LGND is growing strongly while it is still valued neutral. This is a good combination! These ratings would make LGND suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year LGND was profitable.
- LGND had a positive operating cash flow in the past year.
- In multiple years LGND reported negative net income over the last 5 years.
- In the past 5 years LGND always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.29%, LGND belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
- LGND has a Return On Equity of 5.11%. This is amongst the best in the industry. LGND outperforms 83.77% of its industry peers.
- LGND's Return On Invested Capital of 1.58% is fine compared to the rest of the industry. LGND outperforms 79.06% of its industry peers.
- LGND had an Average Return On Invested Capital over the past 3 years of 1.12%. This is significantly below the industry average of 12.64%.
- 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 Rank | Sector 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%
1.3 Margins
- With an excellent Profit Margin value of 19.34%, LGND belongs to the best of the industry, outperforming 90.58% of the companies in the same industry.
- LGND's Operating Margin of 11.48% is amongst the best of the industry. LGND outperforms 84.82% of its industry peers.
- LGND's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 94.27%, LGND belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
- In the last couple of years the Gross Margin of LGND has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- LGND has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, LGND has more shares outstanding
- LGND has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LGND has a worse debt to assets ratio.
2.2 Solvency
- LGND has an Altman-Z score of 5.63. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
- LGND has a better Altman-Z score (5.63) than 78.01% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 14.48, LGND is in the better half of the industry, outperforming 78.01% of the companies in the same industry.
- LGND has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.47, LGND is not doing good in the industry: 61.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 14.48 | ||
| Altman-Z | 5.63 |
ROIC/WACC0.17
WACC9.24%
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.
- LGND has a Current ratio of 24.69. This is amongst the best in the industry. LGND outperforms 94.24% of its industry peers.
- LGND has a Quick Ratio of 24.30. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
- LGND has a better Quick ratio (24.30) than 93.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.3 |
3. Growth
3.1 Past
- LGND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.26%, 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 13.44% yearly.
- The Revenue has grown by 64.83% in the past year. This is a very strong growth!
- Measured over the past years, LGND shows a small growth in Revenue. The Revenue has been growing by 6.80% on average per year.
EPS 1Y (TTM)25.26%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%67.93%
Revenue 1Y (TTM)64.83%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%67.71%
3.2 Future
- LGND is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.28% yearly.
- The Revenue is expected to grow by 20.13% on average over the next years. This is a very strong growth
EPS Next Y35.4%
EPS Next 2Y21.72%
EPS Next 3Y19.77%
EPS Next 5Y15.28%
Revenue Next Year48.19%
Revenue Next 2Y27.54%
Revenue Next 3Y24.22%
Revenue Next 5Y20.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.05 indicates a quite expensive valuation of LGND.
- Based on the Price/Earnings ratio, LGND is valued a bit cheaper than the industry average as 78.53% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of LGND to the average of the S&P500 Index (27.27), we can say LGND is valued inline with the index average.
- LGND is valuated rather expensively with a Price/Forward Earnings ratio of 22.45.
- Based on the Price/Forward Earnings ratio, LGND is valued a bit cheaper than the industry average as 76.44% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.16, LGND is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LGND is valued a bit cheaper than the industry average as 77.49% of the companies are valued more expensively.
- 75.39% of the companies in the same industry are more expensive than LGND, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 121.52 | ||
| EV/EBITDA | 47.5 |
4.3 Compensation for Growth
- LGND's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LGND has a very decent profitability rating, which may justify a higher PE ratio.
- LGND's earnings are expected to grow with 19.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)1.94
EPS Next 2Y21.72%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
- LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
189.94
+2.43 (+1.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-26 2026-02-26/amc
Inst Owners106.73%
Inst Owner Change-0.81%
Ins Owners1.62%
Ins Owner Change-1.19%
Market Cap3.74B
Revenue(TTM)251.23M
Net Income(TTM)48.58M
Analysts85.71
Price Target248.31 (30.73%)
Short Float %6.67%
Short Ratio5.87
Dividend
| Industry Rank | Sector 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)32.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)3.65%
EPS NY rev (3m)10.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.45 | ||
| P/S | 14.88 | ||
| P/FCF | 121.52 | ||
| P/OCF | 117.12 | ||
| P/B | 3.93 | ||
| P/tB | 9.14 | ||
| EV/EBITDA | 47.5 |
EPS(TTM)7.29
EY3.84%
EPS(NY)8.46
Fwd EY4.45%
FCF(TTM)1.56
FCFY0.82%
OCF(TTM)1.62
OCFY0.85%
SpS12.77
BVpS48.28
TBVpS20.77
PEG (NY)0.74
PEG (5Y)1.94
Graham Number88.99
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.63 |
F-Score5
WACC9.24%
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)25.26%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%67.93%
EPS Next Y35.4%
EPS Next 2Y21.72%
EPS Next 3Y19.77%
EPS Next 5Y15.28%
Revenue 1Y (TTM)64.83%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%67.71%
Revenue Next Year48.19%
Revenue Next 2Y27.54%
Revenue Next 3Y24.22%
Revenue Next 5Y20.13%
EBIT growth 1Y64.02%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year674.52%
EBIT Next 3Y155.59%
EBIT Next 5Y79.19%
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 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 of LIGAND PHARMACEUTICALS (LGND) stock?
ChartMill assigns a valuation rating of 5 / 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 6 / 10.