LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis
NASDAQ:LGND • US53220K5048
183.65 USD
-0.33 (-0.18%)
At close: Feb 23, 2026
183.65 USD
0 (0%)
After Hours: 2/23/2026, 4:30:02 PM
LGND gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. LGND scores excellent on profitability, but there are some minor concerns on its financial health. LGND is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make LGND a good candidate for growth investing.
1. Profitability
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.
1.2 Ratios
- LGND has a better Return On Assets (3.29%) than 82.81% of its industry peers.
- Looking at the Return On Equity, with a value of 5.11%, LGND belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
- LGND has a better Return On Invested Capital (1.58%) than 79.17% 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 12.95%.
- The last Return On Invested Capital (1.58%) for LGND is above the 3 year average (1.12%), which is a sign of increasing profitability.
| 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
- The Profit Margin of LGND (19.34%) is better than 90.63% of its industry peers.
- With an excellent Operating Margin value of 11.48%, LGND belongs to the best of the industry, outperforming 84.90% of the companies in the same industry.
- 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 96.35% 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.
- Compared to 1 year ago, LGND has more shares outstanding
- LGND has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for LGND is higher compared to a year ago.
2.2 Solvency
- LGND has an Altman-Z score of 5.50. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of LGND (5.50) is better than 78.13% 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.
- LGND has a better Debt to FCF ratio (14.48) than 78.65% of its industry peers.
- LGND has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.47, LGND is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 14.48 | ||
| Altman-Z | 5.5 |
ROIC/WACC0.17
WACC9.28%
2.3 Liquidity
- A Current Ratio of 24.69 indicates that LGND has no problem at all paying its short term obligations.
- LGND's Current ratio of 24.69 is amongst the best of the industry. LGND outperforms 94.27% 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.
- LGND has a better Quick ratio (24.30) than 93.23% of its industry peers.
| 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.
- Measured over the past years, LGND shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.44% on average per year.
- Looking at the last year, LGND shows a very strong growth in Revenue. The Revenue has grown by 64.83%.
- Measured over the past years, LGND shows a small growth in Revenue. The Revenue has been growing by 6.80% on average per year.
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 15.28% yearly.
- The Revenue is expected to grow by 20.13% on average over the next years. This is a very strong growth
EPS Next Y35.4%
EPS Next 2Y21.72%
EPS Next 3Y19.77%
EPS Next 5Y15.28%
Revenue Next Year48.19%
Revenue Next 2Y27.54%
Revenue Next 3Y24.22%
Revenue Next 5Y20.13%
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 stable.
- 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
- LGND is valuated quite expensively with a Price/Earnings ratio of 25.19.
- Based on the Price/Earnings ratio, LGND is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
- LGND is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.71, which indicates a rather expensive current valuation of LGND.
- LGND's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LGND is cheaper than 77.08% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.02. LGND is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 21.71 |
4.2 Price Multiples
- LGND's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LGND is cheaper than 77.08% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LGND is valued a bit cheaper than 76.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 117.5 | ||
| EV/EBITDA | 45.63 |
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.
- LGND's earnings are expected to grow with 19.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)1.87
EPS Next 2Y21.72%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
- LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
183.65
-0.33 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-26 2026-02-26/bmo
Inst Owners106.73%
Inst Owner Change-42.51%
Ins Owners1.62%
Ins Owner Change1.93%
Market Cap3.61B
Revenue(TTM)251.23M
Net Income(TTM)48.58M
Analysts85.71
Price Target248.31 (35.21%)
Short Float %6.67%
Short Ratio5.87
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)0%
PT rev (3m)6.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.7%
EPS NY rev (1m)0%
EPS NY rev (3m)10.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 21.71 | ||
| P/S | 14.39 | ||
| P/FCF | 117.5 | ||
| P/OCF | 113.25 | ||
| P/B | 3.8 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 45.63 |
EPS(TTM)7.29
EY3.97%
EPS(NY)8.46
Fwd EY4.61%
FCF(TTM)1.56
FCFY0.85%
OCF(TTM)1.62
OCFY0.88%
SpS12.77
BVpS48.28
TBVpS20.77
PEG (NY)0.71
PEG (5Y)1.87
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 | 5.5 |
F-Score5
WACC9.28%
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 Y35.4%
EPS Next 2Y21.72%
EPS Next 3Y19.77%
EPS Next 5Y15.28%
Revenue 1Y (TTM)64.83%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%67.71%
Revenue Next Year48.19%
Revenue Next 2Y27.54%
Revenue Next 3Y24.22%
Revenue Next 5Y20.13%
EBIT growth 1Y64.02%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year674.52%
EBIT Next 3Y155.59%
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.
What is the valuation status of LIGAND PHARMACEUTICALS (LGND) stock?
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 financial health of LIGAND PHARMACEUTICALS (LGND) stock?
The financial health rating of LIGAND PHARMACEUTICALS (LGND) is 6 / 10.