LIGAND PHARMACEUTICALS (LGND) Fundamental Analysis & Valuation

NASDAQ:LGND • US53220K5048

Current stock price

195.48 USD
-8.22 (-4.03%)
At close:
195.48 USD
0 (0%)
After Hours:

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.
  • 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.
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

  • The Return On Assets of LGND (7.97%) is better than 89.12% of its industry peers.
  • With an excellent Return On Equity value of 12.23%, LGND belongs to the best of the industry, outperforming 86.53% of the companies in the same industry.
  • LGND's Return On Invested Capital of 2.45% is fine compared to the rest of the industry. LGND outperforms 79.79% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 13.06%.
  • The last Return On Invested Capital (2.45%) for LGND is above the 3 year average (1.82%), which is a sign of increasing profitability.
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

  • LGND has a Profit Margin of 46.42%. This is amongst the best in the industry. LGND outperforms 96.89% of its industry peers.
  • The Operating Margin of LGND (17.61%) is better than 86.01% of its industry peers.
  • LGND's Operating Margin has improved in the last couple of years.
  • The Gross Margin of LGND (94.57%) is better than 95.85% of its industry peers.
  • In the last couple of years the Gross Margin of LGND has grown nicely.
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

  • 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.
  • Compared to 5 years ago, LGND has more shares outstanding
  • 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 5.91. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.91, LGND belongs to the best of the industry, outperforming 80.83% of the companies in the same industry.
  • 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.
  • LGND has a Debt to FCF ratio of 9.12. This is in the better half of the industry: LGND outperforms 79.27% of its industry peers.
  • A Debt/Equity ratio of 0.44 indicates that LGND is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.44, LGND is not doing good in the industry: 60.10% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 9.12
Altman-Z 5.91
ROIC/WACC0.27
WACC9.22%
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.
  • Looking at the Current ratio, with a value of 22.23, LGND belongs to the top of the industry, outperforming 92.75% 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.
  • With an excellent Quick ratio value of 21.98, LGND belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an impressive 40.81% over the past year.
  • 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

  • LGND is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.98% yearly.
  • 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 Y5.61%
EPS Next 2Y10.48%
EPS Next 3Y9.34%
EPS Next 5Y12.98%
Revenue Next Year10.22%
Revenue Next 2Y14.18%
Revenue Next 3Y13.08%
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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4

4. LGND Valuation Analysis

4.1 Price/Earnings Ratio

  • LGND is valuated rather expensively with a Price/Earnings ratio of 24.31.
  • 80.31% of the companies in the same industry are more expensive than LGND, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of LGND to the average of the S&P500 Index (24.88), we can say LGND is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 23.02, LGND is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LGND indicates a somewhat cheap valuation: LGND is cheaper than 75.65% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, LGND is valued at the same level.
Industry RankSector Rank
PE 24.31
Fwd PE 23.02
LGND Price Earnings VS Forward Price EarningsLGND Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 76.17% 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 75.13% of the companies in the same industry.
Industry RankSector Rank
P/FCF 79.7
EV/EBITDA 39.71
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of LGND may justify a higher PE ratio.
PEG (NY)4.33
PEG (5Y)2.02
EPS Next 2Y10.48%
EPS Next 3Y9.34%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LGND Dividend Analysis

5.1 Amount

  • LGND does not give a dividend.
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 (3/27/2026, 8:00:03 PM)

After market: 195.48 0 (0%)

195.48

-8.22 (-4.03%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners106.63%
Inst Owner Change-42.5%
Ins Owners1.81%
Ins Owner Change1.91%
Market Cap3.90B
Revenue(TTM)268.09M
Net Income(TTM)124.45M
Analysts85.71
Price Target248.31 (27.03%)
Short Float %7.09%
Short Ratio6.28
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%
PT rev (3m)2.5%
EPS NQ rev (1m)-5.1%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)0.38%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2.92%
Valuation
Industry RankSector Rank
PE 24.31
Fwd PE 23.02
P/S 14.54
P/FCF 79.7
P/OCF 78.97
P/B 3.83
P/tB 7.9
EV/EBITDA 39.71
EPS(TTM)8.04
EY4.11%
EPS(NY)8.49
Fwd EY4.34%
FCF(TTM)2.45
FCFY1.25%
OCF(TTM)2.48
OCFY1.27%
SpS13.44
BVpS51.01
TBVpS24.74
PEG (NY)4.33
PEG (5Y)2.02
Graham Number96.06
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 5.91
F-Score5
WACC9.22%
ROIC/WACC0.27
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 Y5.61%
EPS Next 2Y10.48%
EPS Next 3Y9.34%
EPS Next 5Y12.98%
Revenue 1Y (TTM)60.4%
Revenue growth 3Y10.97%
Revenue growth 5Y7.54%
Sales Q2Q%39.37%
Revenue Next Year10.22%
Revenue Next 2Y14.18%
Revenue Next 3Y13.08%
Revenue Next 5Y13.58%
EBIT growth 1Y108.55%
EBIT growth 3Y150.57%
EBIT growth 5Y40.24%
EBIT Next Year256.46%
EBIT Next 3Y62.3%
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 of LIGAND PHARMACEUTICALS (LGND) stock?

ChartMill assigns a valuation rating of 4 / 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 8 / 10.


What is the financial health of LIGAND PHARMACEUTICALS (LGND) stock?

The financial health rating of LIGAND PHARMACEUTICALS (LGND) is 6 / 10.