LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis
NASDAQ:LGND - Nasdaq - US53220K5048 - Common Stock - Currency: USD
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 is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years LGND 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LGND (4.74%) is better than 88.65% of its industry peers.
With an excellent Return On Equity value of 5.38%, LGND belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
LGND has a Return On Invested Capital of 1.53%. This is in the better half of the industry: LGND outperforms 77.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 44.06%.
| 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 96.22% of its industry peers.
In the last couple of years the Profit Margin of LGND has declined.
With an excellent Operating Margin value of 11.79%, LGND belongs to the best of the industry, outperforming 83.24% 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 93.52%, LGND belongs to the top of the industry, outperforming 97.30% 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 | 11.79% | ||
| 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
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.
LGND has less shares outstanding than it did 5 years ago.
LGND has a better debt/assets ratio than last year.
2.2 Solvency
LGND has an Altman-Z score of 13.39. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LGND (13.39) is better than 89.19% of its industry peers.
LGND has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.39 |
ROIC/WACC0.16
WACC9.68%
2.3 Liquidity
LGND has a Current Ratio of 12.49. 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 12.49, LGND belongs to the top of the industry, outperforming 85.41% of the companies in the same industry.
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.
LGND's Quick ratio of 11.81 is amongst the best of the industry. LGND outperforms 85.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.49 | ||
| Quick Ratio | 11.81 |
3. Growth
3.1 Past
LGND shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.28%.
The Earnings Per Share has been decreasing by -3.15% on average over the past years.
LGND shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.00%.
LGND shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.19% yearly.
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
LGND is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.39% yearly.
Based on estimates for the next years, LGND will show a quite strong growth in Revenue. The Revenue will grow by 19.29% on average per year.
EPS Next Y-5.43%
EPS Next 2Y1.41%
EPS Next 3Y4.68%
EPS Next 5Y7.39%
Revenue Next Year26.49%
Revenue Next 2Y20.58%
Revenue Next 3Y19.6%
Revenue Next 5Y19.29%
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 20.73, the valuation of LGND can be described as rather expensive.
LGND's Price/Earnings ratio is rather cheap when compared to the industry. LGND is cheaper than 83.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, LGND is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.24, which indicates a rather expensive current valuation of LGND.
80.54% of the companies in the same industry are more expensive than LGND, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, LGND is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 19.24 |
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 77.30% 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 77.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92 | ||
| EV/EBITDA | 35.6 |
4.3 Compensation for Growth
The decent profitability rating of LGND may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.41%
EPS Next 3Y4.68%
5. Dividend
5.1 Amount
No dividends for LGND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
120.67
-1.34 (-1.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.24%
Inst Owner Change-83.54%
Ins Owners1.4%
Ins Owner Change0.28%
Market Cap2.28B
Analysts83.08
Price Target146.88 (21.72%)
Short Float %5.13%
Short Ratio9.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)0%
PT rev (3m)15.7%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0.43%
EPS NY rev (3m)4.91%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 19.24 | ||
| P/S | 14.96 | ||
| P/FCF | 92 | ||
| P/OCF | 29.75 | ||
| P/B | 2.71 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 35.6 |
EPS(TTM)5.82
EY4.82%
EPS(NY)6.27
Fwd EY5.2%
FCF(TTM)1.31
FCFY1.09%
OCF(TTM)4.06
OCFY3.36%
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 | 13.39 |
F-Score6
WACC9.68%
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-5.43%
EPS Next 2Y1.41%
EPS Next 3Y4.68%
EPS Next 5Y7.39%
Revenue 1Y (TTM)17%
Revenue growth 3Y-11.02%
Revenue growth 5Y-12.19%
Sales Q2Q%57.64%
Revenue Next Year26.49%
Revenue Next 2Y20.58%
Revenue Next 3Y19.6%
Revenue Next 5Y19.29%
EBIT growth 1Y-29.14%
EBIT growth 3Y4.12%
EBIT growth 5Y-43.03%
EBIT Next Year87.31%
EBIT Next 3Y60.27%
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%