184.87 USD
-3.63 (-1.93%)
184.87 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LGND. LGND was compared to 192 industry peers in the Pharmaceuticals industry. LGND has an excellent profitability rating, but there are some minor concerns on its financial health. LGND is growing strongly while it is still valued neutral. This is a good combination! This makes LGND very considerable for growth investing!
1. Profitability
1.1 Basic Checks
LGND had positive earnings in the past year.
LGND had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LGND reported negative net income in multiple years.
LGND had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.29%, LGND belongs to the top of the industry, outperforming 83.85% 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 84.38% of its industry peers.
LGND has a better Return On Invested Capital (1.58%) than 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 12.71%.
The 3 year average ROIC (1.12%) for LGND is below the current ROIC(1.58%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 19.34%, LGND belongs to the top of the industry, outperforming 91.15% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.48%, LGND belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
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 95.83% of the companies in the same industry.
LGND's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for LGND has been increased compared to 1 year ago.
Compared to 5 years ago, LGND has more shares outstanding
Compared to 1 year ago, LGND has a worse debt to assets ratio.
2.2 Solvency
LGND has an Altman-Z score of 5.60. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
LGND has a Altman-Z score of 5.60. This is in the better half of the industry: LGND outperforms 75.52% of its industry peers.
LGND has a debt to FCF ratio of 14.48. This is a negative value and a sign of low solvency as LGND would need 14.48 years to pay back of all of its debts.
LGND's Debt to FCF ratio of 14.48 is fine compared to the rest of the industry. LGND outperforms 76.04% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that LGND is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, LGND is not doing good in the industry: 61.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 14.48 | ||
| Altman-Z | 5.6 |
ROIC/WACC0.17
WACC9.12%
2.3 Liquidity
A Current Ratio of 24.69 indicates that LGND has no problem at all paying its short term obligations.
The Current ratio of LGND (24.69) is better than 93.23% of its industry peers.
A Quick Ratio of 24.30 indicates that LGND has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 24.30, LGND belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 13.44% 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 64.83%.
LGND shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.80% yearly.
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
The Earnings Per Share is expected to grow by 16.25% on average over the next years. This is quite good.
Based on estimates for the next years, LGND will show a very strong growth in Revenue. The Revenue will grow by 21.75% on average per year.
EPS Next Y22.63%
EPS Next 2Y16.57%
EPS Next 3Y15.36%
EPS Next 5Y16.25%
Revenue Next Year31.46%
Revenue Next 2Y22.03%
Revenue Next 3Y20.53%
Revenue Next 5Y21.75%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.36 indicates a quite expensive valuation of LGND.
Compared to the rest of the industry, the Price/Earnings ratio of LGND indicates a somewhat cheap valuation: LGND is cheaper than 78.13% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LGND to the average of the S&P500 Index (26.46), we can say LGND is valued inline with the index average.
LGND is valuated rather expensively with a Price/Forward Earnings ratio of 23.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LGND indicates a somewhat cheap valuation: LGND is cheaper than 74.48% 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 (36.10), we can say LGND is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.36 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
77.60% of the companies in the same industry are more expensive than LGND, based on the Enterprise Value to EBITDA ratio.
LGND's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LGND is cheaper than 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 118.28 | ||
| EV/EBITDA | 47.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)1.89
EPS Next 2Y16.57%
EPS Next 3Y15.36%
5. Dividend
5.1 Amount
No dividends for LGND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
184.87
-3.63 (-1.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change87.96%
Ins Owners1.69%
Ins Owner Change-0.52%
Market Cap3.64B
Revenue(TTM)251.23M
Net Income(TTM)48.58M
Analysts84.62
Price Target232.69 (25.87%)
Short Float %5.46%
Short Ratio5.67
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)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)24.57%
PT rev (3m)36.4%
EPS NQ rev (1m)-27.62%
EPS NQ rev (3m)-26.8%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-10.8%
Revenue NQ rev (3m)-10.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.36 | ||
| Fwd PE | 23.83 | ||
| P/S | 14.48 | ||
| P/FCF | 118.28 | ||
| P/OCF | 114 | ||
| P/B | 3.83 | ||
| P/tB | 8.9 | ||
| EV/EBITDA | 47.05 |
EPS(TTM)7.29
EY3.94%
EPS(NY)7.76
Fwd EY4.2%
FCF(TTM)1.56
FCFY0.85%
OCF(TTM)1.62
OCFY0.88%
SpS12.77
BVpS48.28
TBVpS20.77
PEG (NY)1.12
PEG (5Y)1.89
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 | 5.6 |
F-Score5
WACC9.12%
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 Y22.63%
EPS Next 2Y16.57%
EPS Next 3Y15.36%
EPS Next 5Y16.25%
Revenue 1Y (TTM)64.83%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%67.71%
Revenue Next Year31.46%
Revenue Next 2Y22.03%
Revenue Next 3Y20.53%
Revenue Next 5Y21.75%
EBIT growth 1Y64.02%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year478.11%
EBIT Next 3Y137.22%
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.
Can you provide the valuation status for LIGAND PHARMACEUTICALS?
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 valuation of LIGAND PHARMACEUTICALS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LIGAND PHARMACEUTICALS (LGND) is 25.36 and the Price/Book (PB) ratio is 3.83.
Can you provide the expected EPS growth for LGND stock?
The Earnings per Share (EPS) of LIGAND PHARMACEUTICALS (LGND) is expected to grow by 22.63% in the next year.