LIGAND PHARMACEUTICALS (LGND) Fundamental Analysis & Valuation

NASDAQ:LGND • US53220K5048

Current stock price

203.695 USD
-0.87 (-0.42%)
At close:
203.695 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

  • 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.
  • LGND had a positive operating cash flow in each 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 2025 0 200M 400M 600M

1.2 Ratios

  • LGND has a better Return On Assets (7.97%) than 89.12% of its industry peers.
  • LGND has a Return On Equity of 12.23%. This is amongst the best in the industry. LGND outperforms 86.53% of its industry peers.
  • LGND has a Return On Invested Capital of 2.45%. This is in the better half of the industry: LGND outperforms 79.79% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LGND is significantly below the industry average of 13.06%.
  • The last Return On Invested Capital (2.45%) for LGND is above the 3 year average (1.82%), which is a sign of increasing profitability.
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 96.89% of its industry peers.
  • LGND's Operating Margin of 17.61% is amongst the best of the industry. LGND outperforms 86.01% of its industry peers.
  • In the last couple of years the Operating Margin of LGND has grown nicely.
  • With an excellent Gross Margin value of 94.57%, LGND belongs to the best of the industry, outperforming 95.85% of the companies in the same industry.
  • In the last couple of years the Gross Margin of LGND has grown nicely.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. LGND Health Analysis

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.
  • 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 5.93. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of LGND (5.93) is better than 80.31% of its industry peers.
  • LGND has a debt to FCF ratio of 9.12. This is a negative value and a sign of low solvency as LGND would need 9.12 years to pay back of all of its debts.
  • LGND's Debt to FCF ratio of 9.12 is fine compared to the rest of the industry. LGND outperforms 79.27% 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.
  • With a Debt to Equity ratio value of 0.44, LGND is not doing good in the industry: 60.10% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 9.12
Altman-Z 5.93
ROIC/WACC0.27
WACC9.16%
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

  • LGND has a Current Ratio of 22.23. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
  • LGND has a better Current ratio (22.23) than 92.75% of its industry peers.
  • 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 92.75% 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.
  • The Earnings Per Share has been growing by 12.06% on average over the past years. This is quite good.
  • LGND shows a strong growth in Revenue. In the last year, 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

  • LGND is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.98% yearly.
  • Based on estimates for the next years, LGND will show a quite strong growth in Revenue. The Revenue will grow by 13.58% on average per year.
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

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • 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

  • A Price/Earnings ratio of 25.34 indicates a quite expensive valuation of LGND.
  • Compared to the rest of the industry, the Price/Earnings ratio of LGND indicates a rather cheap valuation: LGND is cheaper than 80.31% of the companies listed in the same industry.
  • LGND is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 23.99 indicates a rather expensive valuation of LGND.
  • 76.68% 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 (22.51), we can say LGND is valued inline with the index average.
Industry RankSector Rank
PE 25.34
Fwd PE 23.99
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 76.17% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LGND is valued a bit cheaper than the industry average as 75.13% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 83.05
EV/EBITDA 39.93
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.
  • The excellent profitability rating of LGND may justify a higher PE ratio.
PEG (NY)4.51
PEG (5Y)2.1
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

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

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Find the best dividend stocksShow peers with best dividend

LGND Fundamentals: All Metrics, Ratios and Statistics

LIGAND PHARMACEUTICALS

NASDAQ:LGND (3/26/2026, 8:00:02 PM)

After market: 203.695 0 (0%)

203.695

-0.87 (-0.42%)

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 Change1.91%
Market Cap4.06B
Revenue(TTM)268.09M
Net Income(TTM)124.45M
Analysts85.71
Price Target248.31 (21.9%)
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)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%
PT rev (3m)2.5%
EPS NQ rev (1m)-5.1%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)0.38%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2.92%
Valuation
Industry RankSector Rank
PE 25.34
Fwd PE 23.99
P/S 15.15
P/FCF 83.05
P/OCF 82.29
P/B 3.99
P/tB 8.23
EV/EBITDA 39.93
EPS(TTM)8.04
EY3.95%
EPS(NY)8.49
Fwd EY4.17%
FCF(TTM)2.45
FCFY1.2%
OCF(TTM)2.48
OCFY1.22%
SpS13.44
BVpS51.01
TBVpS24.74
PEG (NY)4.51
PEG (5Y)2.1
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 5.93
F-Score5
WACC9.16%
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 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 8 / 10.


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

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