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 198 industry peers in the Pharmaceuticals industry. While LGND has a great health rating, its profitability is only average at the moment. LGND has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of -0.43%, LGND belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
With an excellent Return On Equity value of -0.49%, LGND belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
LGND has a Return On Invested Capital of 2.01%. This is in the better half of the industry: LGND outperforms 77.27% 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 41.62%.
The last Return On Invested Capital (2.01%) for LGND is above the 3 year average (1.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -0.49% | ||
| ROIC | 2.01% |
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 better Operating Margin (13.77%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of LGND has declined.
The Gross Margin of LGND (93.37%) is better than 95.96% of its industry peers.
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 | 13.77% | ||
| PM (TTM) | N/A | ||
| GM | 93.37% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGND is destroying value.
Compared to 1 year ago, LGND has more shares outstanding
The number of shares outstanding for LGND has been increased compared to 5 years ago.
Compared to 1 year ago, LGND has a worse debt to assets ratio.
2.2 Solvency
LGND has an Altman-Z score of 12.74. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
LGND has a better Altman-Z score (12.74) than 90.40% 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 | 12.74 |
ROIC/WACC0.21
WACC9.8%
2.3 Liquidity
LGND has a Current Ratio of 8.93. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.93, LGND belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
A Quick Ratio of 8.55 indicates that LGND has no problem at all paying its short term obligations.
LGND's Quick ratio of 8.55 is amongst the best of the industry. LGND outperforms 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.93 | ||
| Quick Ratio | 8.55 |
3. Growth
3.1 Past
The earnings per share for LGND have decreased by -6.39% in the last 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 27.27%.
LGND shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.80% yearly.
EPS 1Y (TTM)-6.39%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%-7.97%
Revenue 1Y (TTM)27.27%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%52.35%
3.2 Future
Based on estimates for the next years, LGND will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.18% on average per year.
LGND is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.24% yearly.
EPS Next Y9.32%
EPS Next 2Y11.74%
EPS Next 3Y11.95%
EPS Next 5Y11.18%
Revenue Next Year16.85%
Revenue Next 2Y18.14%
Revenue Next 3Y18.66%
Revenue Next 5Y16.24%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.63, LGND is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LGND indicates a rather cheap valuation: LGND is cheaper than 83.84% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LGND to the average of the S&P500 Index (28.10), we can say LGND is valued slightly cheaper.
LGND is valuated rather expensively with a Price/Forward Earnings ratio of 17.04.
Based on the Price/Forward Earnings ratio, LGND is valued cheaper than 81.82% of the companies in the same industry.
LGND's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LGND is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LGND is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.53 | ||
| EV/EBITDA | 25.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LGND does not grow enough to justify the current Price/Earnings ratio.
LGND has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)1.39
EPS Next 2Y11.74%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
No dividends for LGND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.35
-3.04 (-2.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.24%
Inst Owner Change-0.75%
Ins Owners1.4%
Ins Owner Change3.53%
Market Cap2.05B
Analysts84.62
Price Target146.37 (37.63%)
Short Float %6.07%
Short Ratio9.03
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)19.3%
Min EPS beat(2)4.63%
Max EPS beat(2)33.98%
EPS beat(4)4
Avg EPS beat(4)29.89%
Min EPS beat(4)4.63%
Max EPS beat(4)50.98%
EPS beat(8)8
Avg EPS beat(8)69.49%
EPS beat(12)11
Avg EPS beat(12)73.88%
EPS beat(16)15
Avg EPS beat(16)62.81%
Revenue beat(2)2
Avg Revenue beat(2)16.26%
Min Revenue beat(2)7.56%
Max Revenue beat(2)24.96%
Revenue beat(4)4
Avg Revenue beat(4)16.29%
Min Revenue beat(4)7.56%
Max Revenue beat(4)24.96%
Revenue beat(8)8
Avg Revenue beat(8)14.75%
Revenue beat(12)10
Avg Revenue beat(12)15.42%
Revenue beat(16)13
Avg Revenue beat(16)13.24%
PT rev (1m)-1.46%
PT rev (3m)-0.35%
EPS NQ rev (1m)4.96%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)6.57%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 17.04 | ||
| P/S | 12.27 | ||
| P/FCF | 21.53 | ||
| P/OCF | 21.13 | ||
| P/B | 2.47 | ||
| P/tB | 7.5 | ||
| EV/EBITDA | 25.49 |
EPS(TTM)5.71
EY5.37%
EPS(NY)6.24
Fwd EY5.87%
FCF(TTM)4.94
FCFY4.64%
OCF(TTM)5.03
OCFY4.73%
SpS8.67
BVpS43.07
TBVpS14.19
PEG (NY)2
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -0.49% | ||
| ROCE | 2.54% | ||
| ROIC | 2.01% | ||
| ROICexc | 3.91% | ||
| ROICexgc | N/A | ||
| OM | 13.77% | ||
| PM (TTM) | N/A | ||
| GM | 93.37% | ||
| FCFM | 56.98% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 5.17% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 87.53 | ||
| Cash Conversion | 166.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 8.93 | ||
| Quick Ratio | 8.55 | ||
| Altman-Z | 12.74 |
F-Score5
WACC9.8%
ROIC/WACC0.21
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)-6.39%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%-7.97%
EPS Next Y9.32%
EPS Next 2Y11.74%
EPS Next 3Y11.95%
EPS Next 5Y11.18%
Revenue 1Y (TTM)27.27%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%52.35%
Revenue Next Year16.85%
Revenue Next 2Y18.14%
Revenue Next 3Y18.66%
Revenue Next 5Y16.24%
EBIT growth 1Y134.14%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year44395.9%
EBIT Next 3Y756.53%
EBIT Next 5YN/A
FCF growth 1Y748.81%
FCF growth 3Y10.8%
FCF growth 5YN/A
OCF growth 1Y95.75%
OCF growth 3Y7.19%
OCF growth 5YN/A