LIGAND PHARMACEUTICALS (LGND)
US53220K5048 - Common Stock
Overall LGND gets a fundamental rating of 6 out of 10. We evaluated LGND against 193 industry peers in the Pharmaceuticals industry. LGND has an excellent financial health rating, but there are some minor concerns on its profitability. LGND has a decent growth rate and is not valued too expensively.
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.
LGND had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LGND has a Return On Assets of 4.74%. This is amongst the best in the industry. LGND outperforms 87.37% of its industry peers.
With an excellent Return On Equity value of 5.38%, LGND belongs to the best of the industry, outperforming 86.32% of the companies in the same industry.
LGND's Return On Invested Capital of 1.53% is fine compared to the rest of the industry. LGND outperforms 77.89% 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 43.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 5.38% | ||
| ROIC | 1.53% |
ROA(3y)2.22%
ROA(5y)9.7%
ROE(3y)2.93%
ROE(5y)18.08%
ROIC(3y)2.11%
ROIC(5y)N/A
1.3 Margins
LGND has a better Profit Margin (29.68%) than 95.79% of its industry peers.
In the last couple of years the Profit Margin of LGND has declined.
Looking at the Operating Margin, with a value of 11.79%, LGND belongs to the top of the industry, outperforming 83.16% of the companies in the same industry.
LGND's Operating Margin has declined in the last couple of years.
The Gross Margin of LGND (93.52%) is better than 97.37% of its industry peers.
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 | 11.79% | ||
| PM (TTM) | 29.68% | ||
| GM | 93.52% |
OM growth 3Y17.02%
OM growth 5Y-35.13%
PM growth 3YN/A
PM growth 5Y-6.96%
GM growth 3Y3.2%
GM growth 5Y-1.15%
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.
LGND has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LGND has been reduced compared to 5 years ago.
The debt/assets ratio for LGND has been reduced compared to a year ago.
2.2 Solvency
LGND has an Altman-Z score of 12.71. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
LGND has a Altman-Z score of 12.71. This is amongst the best in the industry. LGND outperforms 88.42% of its industry peers.
There is no outstanding debt for LGND. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.71 |
ROIC/WACC0.16
WACC9.73%
2.3 Liquidity
A Current Ratio of 12.49 indicates that LGND has no problem at all paying its short term obligations.
The Current ratio of LGND (12.49) is better than 85.79% of its industry peers.
LGND has a Quick Ratio of 11.81. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 11.81, LGND belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.49 | ||
| Quick Ratio | 11.81 |
3. Growth
3.1 Past
The earnings per share for LGND have decreased by -4.28% in the last year.
Measured over the past years, LGND shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.15% on average per year.
Looking at the last year, LGND shows a quite strong growth in Revenue. The Revenue has grown by 17.00% in the last year.
Measured over the past years, LGND shows a very negative growth in Revenue. The Revenue has been decreasing by -12.19% on average per year.
EPS 1Y (TTM)-4.28%
EPS 3Y10.27%
EPS 5Y-3.15%
EPS Q2Q%80.39%
Revenue 1Y (TTM)17%
Revenue growth 3Y-11.02%
Revenue growth 5Y-12.19%
Sales Q2Q%57.64%
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 12.74% on average per year.
The Revenue is expected to grow by 20.03% on average over the next years. This is a very strong growth
EPS Next Y-5.84%
EPS Next 2Y-0.24%
EPS Next 3Y4.68%
EPS Next 5Y12.74%
Revenue Next Year26.49%
Revenue Next 2Y20.37%
Revenue Next 3Y19.6%
Revenue Next 5Y20.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.48 indicates a rather 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 82.63% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. LGND is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.68 indicates a rather expensive valuation of LGND.
80.00% of the companies in the same industry are more expensive than LGND, based on the Price/Forward Earnings ratio.
LGND is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
LGND's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LGND is cheaper than 78.42% of the companies in the same industry.
LGND's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LGND is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.44 | ||
| EV/EBITDA | 33.18 |
4.3 Compensation for Growth
LGND has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.24%
EPS Next 3Y4.68%
5. Dividend
5.1 Amount
No dividends for LGND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIGAND PHARMACEUTICALS
NASDAQ:LGND (12/24/2024, 8:25:14 PM)
113.38
-0.42 (-0.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners98.19%
Inst Owner Change8.97%
Ins Owners1.46%
Ins Owner Change-2.83%
Market Cap2.14B
Analysts83.08
Price Target126.95 (11.97%)
Short Float %4.24%
Short Ratio6.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)31.98%
Min EPS beat(2)29.98%
Max EPS beat(2)33.98%
EPS beat(4)4
Avg EPS beat(4)54.92%
Min EPS beat(4)29.98%
Max EPS beat(4)104.76%
EPS beat(8)8
Avg EPS beat(8)70.38%
EPS beat(12)11
Avg EPS beat(12)75.89%
EPS beat(16)15
Avg EPS beat(16)66.3%
Revenue beat(2)2
Avg Revenue beat(2)24.43%
Min Revenue beat(2)23.89%
Max Revenue beat(2)24.96%
Revenue beat(4)4
Avg Revenue beat(4)16.19%
Min Revenue beat(4)7.13%
Max Revenue beat(4)24.96%
Revenue beat(8)7
Avg Revenue beat(8)9.76%
Revenue beat(12)10
Avg Revenue beat(12)15.53%
Revenue beat(16)13
Avg Revenue beat(16)14.45%
PT rev (1m)-2.39%
PT rev (3m)0.37%
EPS NQ rev (1m)-3.95%
EPS NQ rev (3m)-7.34%
EPS NY rev (1m)4.46%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)2.99%
Revenue NY rev (3m)6.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.68 | ||
| P/S | 14.06 | ||
| P/FCF | 86.44 | ||
| P/OCF | 27.96 | ||
| P/B | 2.55 | ||
| P/tB | 8.19 | ||
| EV/EBITDA | 33.18 |
EPS(TTM)5.82
EY5.13%
EPS(NY)6.07
Fwd EY5.35%
FCF(TTM)1.31
FCFY1.16%
OCF(TTM)4.06
OCFY3.58%
SpS8.06
BVpS44.51
TBVpS13.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 5.38% | ||
| ROCE | 1.93% | ||
| ROIC | 1.53% | ||
| ROICexc | 2% | ||
| ROICexgc | 10.84% | ||
| OM | 11.79% | ||
| PM (TTM) | 29.68% | ||
| GM | 93.52% | ||
| FCFM | 16.26% |
ROA(3y)2.22%
ROA(5y)9.7%
ROE(3y)2.93%
ROE(5y)18.08%
ROIC(3y)2.11%
ROIC(5y)N/A
ROICexc(3y)2.88%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.67%
ROCE(5y)N/A
ROICexcg growth 3Y-21.81%
ROICexcg growth 5Y-50.12%
ROICexc growth 3Y16.98%
ROICexc growth 5Y-47.35%
OM growth 3Y17.02%
OM growth 5Y-35.13%
PM growth 3YN/A
PM growth 5Y-6.96%
GM growth 3Y3.2%
GM growth 5Y-1.15%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 145.96% | ||
| Cap/Sales | 34.03% | ||
| Interest Coverage | 71.9 | ||
| Cash Conversion | 143.25% | ||
| Profit Quality | 54.79% | ||
| Current Ratio | 12.49 | ||
| Quick Ratio | 11.81 | ||
| Altman-Z | 12.71 |
F-Score6
WACC9.73%
ROIC/WACC0.16
Cap/Depr(3y)75.97%
Cap/Depr(5y)51.91%
Cap/Sales(3y)20.41%
Cap/Sales(5y)13.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.28%
EPS 3Y10.27%
EPS 5Y-3.15%
EPS Q2Q%80.39%
EPS Next Y-5.84%
EPS Next 2Y-0.24%
EPS Next 3Y4.68%
EPS Next 5Y12.74%
Revenue 1Y (TTM)17%
Revenue growth 3Y-11.02%
Revenue growth 5Y-12.19%
Sales Q2Q%57.64%
Revenue Next Year26.49%
Revenue Next 2Y20.37%
Revenue Next 3Y19.6%
Revenue Next 5Y20.03%
EBIT growth 1Y-29.14%
EBIT growth 3Y4.12%
EBIT growth 5Y-43.03%
EBIT Next Year87.81%
EBIT Next 3Y62.07%
EBIT Next 5YN/A
FCF growth 1Y-73.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.56%
OCF growth 3Y-3.17%
OCF growth 5Y-23.89%