LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis
NASDAQ:LGND - Nasdaq - US53220K5048 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LGND. LGND was compared to 198 industry peers in the Pharmaceuticals industry. LGND is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LGND has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LGND had positive earnings in the past year.
LGND had a positive operating cash flow in the past year.
In multiple years LGND reported negative net income over the last 5 years.
LGND had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LGND (-0.43%) is better than 80.90% of its industry peers.
The Return On Equity of LGND (-0.49%) is better than 82.41% of its industry peers.
The Return On Invested Capital of LGND (2.01%) is better than 77.39% of its industry peers.
LGND had an Average Return On Invested Capital over the past 3 years of 1.12%. This is significantly below the industry average of 41.51%.
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 Operating Margin of 13.77%. This is amongst the best in the industry. LGND outperforms 83.42% of its industry peers.
In the last couple of years the Operating Margin of LGND has declined.
LGND has a Gross Margin of 93.37%. This is amongst the best in the industry. LGND outperforms 95.98% of its industry peers.
LGND's Gross Margin has been stable in the last couple of years.
| 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
LGND has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LGND has been increased compared to 1 year ago.
LGND has more shares outstanding than it did 5 years ago.
LGND has a worse debt/assets ratio than last year.
2.2 Solvency
LGND has an Altman-Z score of 12.59. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.59, LGND belongs to the best of the industry, outperforming 90.45% of the companies in the same industry.
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 | 12.59 |
ROIC/WACC0.21
WACC9.59%
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 a decent Current ratio value of 8.93, LGND is doing good in the industry, outperforming 79.90% of the companies in the same industry.
LGND has a Quick Ratio of 8.55. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 8.55, LGND belongs to the top of the industry, outperforming 80.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.93 | ||
| Quick Ratio | 8.55 |
3. Growth
3.1 Past
LGND shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.39%.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
The Revenue has grown by 27.27% in the past year. This is a very strong growth!
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)-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
The Earnings Per Share is expected to grow by 11.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.24% on average over the next years. This is quite good.
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.
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
Based on the Price/Earnings ratio of 18.93, the valuation of LGND can be described as rather expensive.
82.41% of the companies in the same industry are more expensive than LGND, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.78. LGND is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.31, LGND is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LGND is valued cheaply inside the industry as 81.91% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.32. LGND is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 17.31 |
4.2 Price Multiples
77.89% 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 cheaply inside the industry as 82.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.86 | ||
| EV/EBITDA | 25.02 |
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.
The decent profitability rating of LGND may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)1.41
EPS Next 2Y11.74%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.07
-0.48 (-0.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.24%
Inst Owner Change-44.96%
Ins Owners1.4%
Ins Owner Change3.53%
Market Cap2.08B
Analysts83.33
Price Target146.37 (35.44%)
Short Float %5.35%
Short Ratio7.98
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)-0.61%
PT rev (3m)-0.35%
EPS NQ rev (1m)4.96%
EPS NQ rev (3m)-1.91%
EPS NY rev (1m)0.46%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)8.52%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 17.31 | ||
| P/S | 12.45 | ||
| P/FCF | 21.86 | ||
| P/OCF | 21.45 | ||
| P/B | 2.51 | ||
| P/tB | 7.61 | ||
| EV/EBITDA | 25.02 |
EPS(TTM)5.71
EY5.28%
EPS(NY)6.24
Fwd EY5.78%
FCF(TTM)4.94
FCFY4.58%
OCF(TTM)5.04
OCFY4.66%
SpS8.68
BVpS43.12
TBVpS14.2
PEG (NY)2.03
PEG (5Y)1.41
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 | 12.59 |
F-Score5
WACC9.59%
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 Year605.82%
EBIT Next 3Y115.21%
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