LIGAND PHARMACEUTICALS (LGND) Fundamental Analysis & Valuation
NASDAQ:LGND • US53220K5048
Current stock price
202.91 USD
-8.57 (-4.05%)
At close:
202.91 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.
1. LGND Profitability Analysis
1.1 Basic Checks
- In the past year LGND was profitable.
- In the past year LGND had a positive cash flow from operations.
- In multiple years LGND reported negative net income over the last 5 years.
- LGND had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- LGND has a better Return On Assets (3.29%) than 83.42% of its industry peers.
- LGND has a better Return On Equity (5.11%) than 83.94% of its industry peers.
- The Return On Invested Capital of LGND (1.58%) is better than 79.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 13.21%.
- 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 92.23% of its industry peers.
- LGND has a Operating Margin of 11.48%. This is amongst the best in the industry. LGND outperforms 84.97% of its industry peers.
- In the last couple of years the Operating Margin of LGND has declined.
- LGND's Gross Margin of 94.27% is amongst the best of the industry. LGND outperforms 96.37% 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 | 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. LGND Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGND is destroying value.
- There is no outstanding debt for LGND. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- LGND has an Altman-Z score of 6.18. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
- LGND has a Altman-Z score of 6.18. This is amongst the best in the industry. LGND outperforms 80.31% 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 Debt to FCF ratio of 14.48. This is in the better half of the industry: LGND outperforms 77.20% 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.
- Looking at the Debt to Equity ratio, with a value of 0.47, LGND is doing worse than 60.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 14.48 | ||
| Altman-Z | 6.18 |
ROIC/WACC0.17
WACC9.48%
2.3 Liquidity
- A Current Ratio of 24.69 indicates that LGND has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 24.69, LGND belongs to the top of the industry, outperforming 93.78% of the companies in the same industry.
- A Quick Ratio of 24.30 indicates that LGND has no problem at all paying its short term obligations.
- The Quick ratio of LGND (24.30) is better than 92.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.3 |
3. LGND Growth Analysis
3.1 Past
- LGND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.81%, which is quite impressive.
- LGND shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
EPS 1Y (TTM)40.81%
EPS 3Y23.39%
EPS 5Y12.06%
EPS Q2Q%59.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%39.37%
3.2 Future
- The Earnings Per Share is expected to grow by 12.98% on average over the next years. This is quite good.
- Based on estimates for the next years, LGND will show a quite strong growth in Revenue. The Revenue will grow by 13.58% on average per year.
EPS Next Y5.61%
EPS Next 2Y10.48%
EPS Next 3Y9.34%
EPS Next 5Y12.98%
Revenue Next Year9.39%
Revenue Next 2Y14.11%
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.
4. LGND Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.24, 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 79.27% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.70. LGND is around the same levels.
- The Price/Forward Earnings ratio is 23.90, which indicates a rather expensive current valuation of LGND.
- Based on the Price/Forward Earnings ratio, LGND is valued a bit cheaper than 76.17% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LGND to the average of the S&P500 Index (23.84), we can say LGND is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 23.9 |
4.2 Price Multiples
- 76.68% of the companies in the same industry are more expensive than LGND, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, LGND is valued a bit cheaper than the industry average as 75.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 131.54 | ||
| EV/EBITDA | 55.09 |
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)4.5
PEG (5Y)2.09
EPS Next 2Y10.48%
EPS Next 3Y9.34%
5. LGND Dividend Analysis
5.1 Amount
- LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LGND Fundamentals: All Metrics, Ratios and Statistics
202.91
-8.57 (-4.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners106.63%
Inst Owner Change-42.5%
Ins Owners1.81%
Ins Owner Change1.93%
Market Cap4.05B
Revenue(TTM)N/A
Net Income(TTM)48.58M
Analysts85.71
Price Target248.31 (22.37%)
Short Float %7.06%
Short Ratio6.67
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)0%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 23.9 | ||
| P/S | 16.1 | ||
| P/FCF | 131.54 | ||
| P/OCF | 126.78 | ||
| P/B | 4.26 | ||
| P/tB | 9.9 | ||
| EV/EBITDA | 55.09 |
EPS(TTM)8.04
EY3.96%
EPS(NY)8.49
Fwd EY4.18%
FCF(TTM)1.54
FCFY0.76%
OCF(TTM)1.6
OCFY0.79%
SpS12.6
BVpS47.65
TBVpS20.5
PEG (NY)4.5
PEG (5Y)2.09
Graham Number92.84
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 | 6.18 |
F-Score5
WACC9.48%
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%39.37%
Revenue Next Year9.39%
Revenue Next 2Y14.11%
Revenue Next 3Y13.08%
Revenue Next 5Y13.58%
EBIT growth 1Y64.02%
EBIT growth 3Y-33.67%
EBIT growth 5YN/A
EBIT Next Year674.52%
EBIT Next 3Y155.76%
EBIT Next 5Y79.51%
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 Fundamental Analysis FAQ
What is the ChartMill fundamental rating of LIGAND PHARMACEUTICALS (LGND) stock?
ChartMill assigns a fundamental rating of 5 / 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 7 / 10.
What is the financial health of LIGAND PHARMACEUTICALS (LGND) stock?
The financial health rating of LIGAND PHARMACEUTICALS (LGND) is 7 / 10.