LIGAND PHARMACEUTICALS (LGND) Fundamental Analysis & Valuation

NASDAQ:LGND • US53220K5048

Current stock price

233.68 USD
+4.23 (+1.84%)
Last:

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's Return On Assets of 7.97% is amongst the best of the industry. LGND outperforms 88.48% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.23%, LGND belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
  • The Return On Invested Capital of LGND (2.45%) is better than 80.10% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 13.07%.
  • 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

  • The Profit Margin of LGND (46.42%) is better than 96.34% of its industry peers.
  • LGND's Operating Margin of 17.61% is amongst the best of the industry. LGND outperforms 86.39% of its industry peers.
  • LGND's Operating Margin has improved in the last couple of years.
  • LGND has a better Gross Margin (94.57%) than 96.34% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The debt/assets ratio for LGND is higher compared to a year ago.
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 6.48. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
  • LGND's Altman-Z score of 6.48 is fine compared to the rest of the industry. LGND outperforms 78.53% 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.
  • Looking at the Debt to FCF ratio, with a value of 9.12, LGND is in the better half of the industry, outperforming 79.06% of the companies in the same industry.
  • 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 65.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 9.12
Altman-Z 6.48
ROIC/WACC0.26
WACC9.45%
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.
  • With an excellent Current ratio value of 22.23, LGND belongs to the best of the industry, outperforming 93.19% 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.
  • The Quick ratio of LGND (21.98) is better than 93.19% 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.
  • The Revenue has grown by 60.40% in the past year. This is a very strong growth!
  • 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 Y19.24%
EPS Next 2Y21.59%
EPS Next 3Y24.36%
EPS Next 5Y12.98%
Revenue Next Year9.95%
Revenue Next 2Y14.58%
Revenue Next 3Y13.85%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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5

4. LGND Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.06, which means the current valuation is very expensive for LGND.
  • 80.10% of the companies in the same industry are more expensive than LGND, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, LGND is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 24.38, the valuation of LGND can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, LGND is valued a bit cheaper than 75.92% of the companies in the same industry.
  • LGND is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.06
Fwd PE 24.38
LGND Price Earnings VS Forward Price EarningsLGND Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • LGND's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LGND is cheaper than 76.44% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LGND is valued a bit cheaper than 75.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF 95.27
EV/EBITDA 46.06
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of LGND may justify a higher PE ratio.
  • A more expensive valuation may be justified as LGND's earnings are expected to grow with 24.36% in the coming years.
PEG (NY)1.51
PEG (5Y)2.41
EPS Next 2Y21.59%
EPS Next 3Y24.36%

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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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Find the best dividend stocksShow peers with best dividend

LGND Fundamentals: All Metrics, Ratios and Statistics

LIGAND PHARMACEUTICALS

NASDAQ:LGND (5/1/2026, 12:57:55 PM)

233.68

+4.23 (+1.84%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry Strength65.84
Industry Growth15.53
Earnings (Last)02-26
Earnings (Next)05-07
Inst Owners105.43%
Inst Owner Change0.01%
Ins Owners1.83%
Ins Owner Change2.62%
Market Cap4.66B
Revenue(TTM)268.09M
Net Income(TTM)124.45M
Analysts86.67
Price Target250 (6.98%)
Short Float %7.23%
Short Ratio6.37
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)11.15%
EPS NQ rev (3m)9.14%
EPS NY rev (1m)12.9%
EPS NY rev (3m)13.32%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 29.06
Fwd PE 24.38
P/S 17.38
P/FCF 95.27
P/OCF 94.4
P/B 4.58
P/tB 9.44
EV/EBITDA 46.06
EPS(TTM)8.04
EY3.44%
EPS(NY)9.59
Fwd EY4.1%
FCF(TTM)2.45
FCFY1.05%
OCF(TTM)2.48
OCFY1.06%
SpS13.44
BVpS51.01
TBVpS24.74
PEG (NY)1.51
PEG (5Y)2.41
Graham Number96.0644 (-58.89%)
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 6.48
F-Score5
WACC9.45%
ROIC/WACC0.26
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 Y19.24%
EPS Next 2Y21.59%
EPS Next 3Y24.36%
EPS Next 5Y12.98%
Revenue 1Y (TTM)60.4%
Revenue growth 3Y10.97%
Revenue growth 5Y7.54%
Sales Q2Q%39.37%
Revenue Next Year9.95%
Revenue Next 2Y14.58%
Revenue Next 3Y13.85%
Revenue Next 5Y13.58%
EBIT growth 1Y108.55%
EBIT growth 3Y150.57%
EBIT growth 5Y40.24%
EBIT Next Year212.26%
EBIT Next 3Y59.73%
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 5 / 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 19.24% in the next year.