LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis
NASDAQ:LGND - Nasdaq - US53220K5048 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LGND. LGND was compared to 195 industry peers in the Pharmaceuticals industry. LGND is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LGND is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LGND was profitable.
In the past year LGND had a positive cash flow from operations.
In multiple years LGND reported negative net income over the last 5 years.
Each year in the past 5 years LGND had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -14.60%, LGND is in the better half of the industry, outperforming 65.13% of the companies in the same industry.
LGND has a Return On Equity of -16.60%. This is in the better half of the industry: LGND outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.6% | ||
| ROE | -16.6% | ||
| ROIC | N/A |
ROA(3y)0.6%
ROA(5y)1.2%
ROE(3y)0.45%
ROE(5y)1.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of LGND has declined.
LGND has a Gross Margin of 92.81%. This is amongst the best in the industry. LGND outperforms 95.90% of its industry peers.
In the last couple of years the Gross Margin of LGND has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for LGND so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 92.81% |
OM growth 3Y-21.46%
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LGND has more shares outstanding
Compared to 5 years ago, LGND has more shares outstanding
The debt/assets ratio for LGND is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 13.14 indicates that LGND is not in any danger for bankruptcy at the moment.
LGND's Altman-Z score of 13.14 is amongst the best of the industry. LGND outperforms 88.72% of its industry peers.
LGND has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.14 |
ROIC/WACCN/A
WACC9.76%
2.3 Liquidity
A Current Ratio of 5.24 indicates that LGND has no problem at all paying its short term obligations.
LGND has a Current ratio of 5.24. This is in the better half of the industry: LGND outperforms 72.31% of its industry peers.
LGND has a Quick Ratio of 4.98. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.98, LGND is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.24 | ||
| Quick Ratio | 4.98 |
3. Growth
3.1 Past
LGND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.33%, which is quite good.
LGND shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.44% yearly.
LGND shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.39%.
The Revenue has been growing slightly by 6.80% on average over the past years.
EPS 1Y (TTM)16.33%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%10.83%
Revenue 1Y (TTM)53.39%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%46.34%
3.2 Future
The Earnings Per Share is expected to grow by 12.04% on average over the next years. This is quite good.
LGND is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.40% yearly.
EPS Next Y8.94%
EPS Next 2Y11.74%
EPS Next 3Y12.9%
EPS Next 5Y12.04%
Revenue Next Year18.79%
Revenue Next 2Y18.83%
Revenue Next 3Y18.39%
Revenue Next 5Y17.4%
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
The Price/Earnings ratio is 19.62, which indicates a rather expensive current valuation of LGND.
Based on the Price/Earnings ratio, LGND is valued cheaper than 82.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of LGND to the average of the S&P500 Index (27.45), we can say LGND is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.07, which indicates a correct valuation of LGND.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LGND indicates a somewhat cheap valuation: LGND is cheaper than 77.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LGND to the average of the S&P500 Index (21.90), we can say LGND is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 16.07 |
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 75.90% 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 78.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.13 | ||
| EV/EBITDA | 100.19 |
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.
A more expensive valuation may be justified as LGND's earnings are expected to grow with 12.90% in the coming years.
PEG (NY)2.2
PEG (5Y)1.46
EPS Next 2Y11.74%
EPS Next 3Y12.9%
5. Dividend
5.1 Amount
LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.58
+0.92 (+0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners99.56%
Inst Owner Change2.02%
Ins Owners1.68%
Ins Owner Change5.29%
Market Cap2.21B
Analysts84.62
Price Target146.75 (28.08%)
Short Float %6.13%
Short Ratio9.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.65%
Min EPS beat(2)4.63%
Max EPS beat(2)8.66%
EPS beat(4)4
Avg EPS beat(4)19.31%
Min EPS beat(4)4.63%
Max EPS beat(4)33.98%
EPS beat(8)8
Avg EPS beat(8)51.82%
EPS beat(12)12
Avg EPS beat(12)75.71%
EPS beat(16)15
Avg EPS beat(16)61.92%
Revenue beat(2)2
Avg Revenue beat(2)11.2%
Min Revenue beat(2)7.56%
Max Revenue beat(2)14.84%
Revenue beat(4)4
Avg Revenue beat(4)17.81%
Min Revenue beat(4)7.56%
Max Revenue beat(4)24.96%
Revenue beat(8)8
Avg Revenue beat(8)13.27%
Revenue beat(12)11
Avg Revenue beat(12)16.78%
Revenue beat(16)14
Avg Revenue beat(16)15.04%
PT rev (1m)0.26%
PT rev (3m)-1.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.22%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 16.07 | ||
| P/S | 12.18 | ||
| P/FCF | 44.13 | ||
| P/OCF | 42.5 | ||
| P/B | 2.78 | ||
| P/tB | 8.98 | ||
| EV/EBITDA | 100.19 |
EPS(TTM)5.84
EY5.1%
EPS(NY)7.13
Fwd EY6.22%
FCF(TTM)2.6
FCFY2.27%
OCF(TTM)2.7
OCFY2.35%
SpS9.41
BVpS41.21
TBVpS12.75
PEG (NY)2.2
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.6% | ||
| ROE | -16.6% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 92.81% | ||
| FCFM | 27.59% |
ROA(3y)0.6%
ROA(5y)1.2%
ROE(3y)0.45%
ROE(5y)1.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)1.42%
ROCE(5y)2.25%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-21.46%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.37%
GM growth 5Y0.62%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 5.49% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 285.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.24 | ||
| Quick Ratio | 4.98 | ||
| Altman-Z | 13.14 |
F-Score5
WACC9.76%
ROIC/WACCN/A
Cap/Depr(3y)70.98%
Cap/Depr(5y)49.53%
Cap/Sales(3y)19.65%
Cap/Sales(5y)12.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.33%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%10.83%
EPS Next Y8.94%
EPS Next 2Y11.74%
EPS Next 3Y12.9%
EPS Next 5Y12.04%
Revenue 1Y (TTM)53.39%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%46.34%
Revenue Next Year18.79%
Revenue Next 2Y18.83%
Revenue Next 3Y18.39%
Revenue Next 5Y17.4%
EBIT growth 1Y-1110.95%
EBIT growth 3Y-33.64%
EBIT growth 5YN/A
EBIT Next Year454.88%
EBIT Next 3Y133.64%
EBIT Next 5YN/A
FCF growth 1Y-52.03%
FCF growth 3Y10.79%
FCF growth 5YN/A
OCF growth 1Y-56.59%
OCF growth 3Y7.17%
OCF growth 5YN/A