189.55 USD
+6.42 (+3.51%)
189.55 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LGND. LGND was compared to 191 industry peers in the Pharmaceuticals industry. While LGND belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LGND is growing strongly while it is still valued neutral. This is a good combination! These ratings could make LGND a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
LGND had positive earnings in the past year.
In the past year LGND had a positive cash flow from operations.
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
The Return On Assets of LGND (3.29%) is better than 83.25% of its industry peers.
LGND has a better Return On Equity (5.11%) than 83.25% of its industry peers.
LGND has a Return On Invested Capital of 1.58%. This is in the better half of the industry: LGND outperforms 78.53% of its industry peers.
LGND had an Average Return On Invested Capital over the past 3 years of 1.12%. This is significantly below the industry average of 12.85%.
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
LGND has a Profit Margin of 19.34%. This is amongst the best in the industry. LGND outperforms 90.58% of its industry peers.
The Operating Margin of LGND (11.48%) is better than 84.29% of its industry peers.
In the last couple of years the Operating Margin of LGND has declined.
Looking at the Gross Margin, with a value of 94.27%, LGND belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
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 | 11.48% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LGND is destroying value.
LGND has more shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 5.62 indicates that LGND is not in any danger for bankruptcy at the moment.
LGND has a Altman-Z score of 5.62. This is in the better half of the industry: LGND outperforms 75.39% of its industry peers.
The Debt to FCF ratio of LGND is 14.48, which is on the high side as it means it would take LGND, 14.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.48, LGND is in the better half of the industry, outperforming 76.96% of the companies in the same industry.
LGND has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
LGND's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. LGND is outperformed by 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 14.48 | ||
| Altman-Z | 5.62 |
ROIC/WACC0.17
WACC9.43%
2.3 Liquidity
LGND has a Current Ratio of 24.69. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
LGND's Current ratio of 24.69 is amongst the best of the industry. LGND outperforms 93.72% of its industry peers.
LGND has a Quick Ratio of 24.30. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LGND (24.30) is better than 92.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.26% over the past year.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
Looking at the last year, LGND shows a very strong growth in Revenue. 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
LGND is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.25% yearly.
LGND is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.75% yearly.
EPS Next Y35.02%
EPS Next 2Y18.34%
EPS Next 3Y20.06%
EPS Next 5Y16.25%
Revenue Next Year57.16%
Revenue Next 2Y25.98%
Revenue Next 3Y23.91%
Revenue Next 5Y21.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.00, the valuation of LGND can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LGND indicates a somewhat cheap valuation: LGND is cheaper than 78.53% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LGND to the average of the S&P500 Index (26.56), we can say LGND is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.70, LGND is valued on the expensive side.
LGND's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LGND is cheaper than 73.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, LGND is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 23.7 |
4.2 Price Multiples
76.96% 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 74.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 121.27 | ||
| EV/EBITDA | 47.37 |
4.3 Compensation for Growth
LGND's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LGND has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LGND's earnings are expected to grow with 20.06% in the coming years.
PEG (NY)0.74
PEG (5Y)1.94
EPS Next 2Y18.34%
EPS Next 3Y20.06%
5. Dividend
5.1 Amount
LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
189.55
+6.42 (+3.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners106.5%
Inst Owner Change87.96%
Ins Owners1.62%
Ins Owner Change-1.35%
Market Cap3.73B
Revenue(TTM)251.23M
Net Income(TTM)48.58M
Analysts84.62
Price Target242.25 (27.8%)
Short Float %5.46%
Short Ratio5.67
Dividend
| Industry Rank | Sector 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)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)29.69%
PT rev (3m)29.69%
EPS NQ rev (1m)-15.09%
EPS NQ rev (3m)-27.62%
EPS NY rev (1m)10.1%
EPS NY rev (3m)10.15%
Revenue NQ rev (1m)-6.35%
Revenue NQ rev (3m)-10.84%
Revenue NY rev (1m)19.55%
Revenue NY rev (3m)19.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 23.7 | ||
| P/S | 14.85 | ||
| P/FCF | 121.27 | ||
| P/OCF | 116.88 | ||
| P/B | 3.93 | ||
| P/tB | 9.13 | ||
| EV/EBITDA | 47.37 |
EPS(TTM)7.29
EY3.85%
EPS(NY)8
Fwd EY4.22%
FCF(TTM)1.56
FCFY0.82%
OCF(TTM)1.62
OCFY0.86%
SpS12.77
BVpS48.28
TBVpS20.77
PEG (NY)0.74
PEG (5Y)1.94
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 | 5.62 |
F-Score5
WACC9.43%
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 Y35.02%
EPS Next 2Y18.34%
EPS Next 3Y20.06%
EPS Next 5Y16.25%
Revenue 1Y (TTM)64.83%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%67.71%
Revenue Next Year57.16%
Revenue Next 2Y25.98%
Revenue Next 3Y23.91%
Revenue Next 5Y21.75%
EBIT growth 1Y64.02%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year652.88%
EBIT Next 3Y145.93%
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 26 and the Price/Book (PB) ratio is 3.93.
Can you provide the expected EPS growth for LGND stock?
The Earnings per Share (EPS) of LIGAND PHARMACEUTICALS (LGND) is expected to grow by 35.02% in the next year.