LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis
NASDAQ:LGND - Nasdaq - US53220K5048 - Common Stock - Currency: USD
LGND gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 197 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 is not valued too expensively and it also shows a decent 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.
The reported net income has been mixed in the past 5 years: LGND reported negative net income in multiple years.
In the past 5 years LGND always reported a positive cash flow from operatings.
1.2 Ratios
LGND has a better Return On Assets (-14.60%) than 66.50% of its industry peers.
LGND has a better Return On Equity (-16.60%) than 75.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.6% | ||
| ROE | -16.6% | ||
| ROIC | N/A |
ROA(3y)0.6%
ROA(5y)1.2%
ROE(3y)0.45%
ROE(5y)1.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LGND's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 92.81%, LGND belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
LGND's Gross Margin has been stable in the last couple of years.
LGND does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 92.81% |
OM growth 3Y-21.46%
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LGND has more shares outstanding
LGND has more shares outstanding than it did 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 11.93. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
LGND's Altman-Z score of 11.93 is amongst the best of the industry. LGND outperforms 89.34% 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 | 11.93 |
ROIC/WACCN/A
WACC9.88%
2.3 Liquidity
A Current Ratio of 5.24 indicates that LGND has no problem at all paying its short term obligations.
LGND's Current ratio of 5.24 is fine compared to the rest of the industry. LGND outperforms 72.59% of its industry peers.
A Quick Ratio of 4.98 indicates that LGND has no problem at all paying its short term obligations.
LGND has a better Quick ratio (4.98) than 72.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.24 | ||
| Quick Ratio | 4.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.33% over the past year.
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 53.39%.
The Revenue has been growing slightly by 6.80% on average over the past years.
EPS 1Y (TTM)16.33%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%10.83%
Revenue 1Y (TTM)53.39%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%46.34%
3.2 Future
The Earnings Per Share is expected to grow by 11.18% 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 16.24% on average per year.
EPS Next Y9.09%
EPS Next 2Y8.29%
EPS Next 3Y12.87%
EPS Next 5Y11.18%
Revenue Next Year18.06%
Revenue Next 2Y18.37%
Revenue Next 3Y18.32%
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
A Price/Earnings ratio of 17.50 indicates a rather expensive valuation of LGND.
Based on the Price/Earnings ratio, LGND is valued cheaply inside the industry as 84.77% of the companies are valued more expensively.
LGND's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 15.26, which indicates a correct valuation of LGND.
78.68% of the companies in the same industry are more expensive than LGND, based on the Price/Forward Earnings ratio.
LGND is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LGND is valued a bit cheaper than 75.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LGND is valued a bit cheaper than the industry average as 79.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.36 | ||
| EV/EBITDA | 88.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as LGND's earnings are expected to grow with 12.87% in the coming years.
PEG (NY)1.93
PEG (5Y)1.3
EPS Next 2Y8.29%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
LGND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.19
+1.28 (+1.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.24%
Inst Owner Change1.99%
Ins Owners1.4%
Ins Owner Change4.4%
Market Cap1.97B
Analysts84.62
Price Target146.37 (43.23%)
Short Float %6.48%
Short Ratio9.8
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)6.65%
Min EPS beat(2)4.63%
Max EPS beat(2)8.66%
EPS beat(4)4
Avg EPS beat(4)19.31%
Min EPS beat(4)4.63%
Max EPS beat(4)33.98%
EPS beat(8)8
Avg EPS beat(8)51.82%
EPS beat(12)12
Avg EPS beat(12)75.71%
EPS beat(16)15
Avg EPS beat(16)61.92%
Revenue beat(2)2
Avg Revenue beat(2)11.2%
Min Revenue beat(2)7.56%
Max Revenue beat(2)14.84%
Revenue beat(4)4
Avg Revenue beat(4)17.81%
Min Revenue beat(4)7.56%
Max Revenue beat(4)24.96%
Revenue beat(8)8
Avg Revenue beat(8)13.27%
Revenue beat(12)11
Avg Revenue beat(12)16.78%
Revenue beat(16)14
Avg Revenue beat(16)15.04%
PT rev (1m)0%
PT rev (3m)-0.35%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 15.26 | ||
| P/S | 10.86 | ||
| P/FCF | 39.36 | ||
| P/OCF | 37.91 | ||
| P/B | 2.48 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 88.03 |
EPS(TTM)5.84
EY5.71%
EPS(NY)6.7
Fwd EY6.55%
FCF(TTM)2.6
FCFY2.54%
OCF(TTM)2.7
OCFY2.64%
SpS9.41
BVpS41.21
TBVpS12.75
PEG (NY)1.93
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.6% | ||
| ROE | -16.6% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 92.81% | ||
| FCFM | 27.59% |
ROA(3y)0.6%
ROA(5y)1.2%
ROE(3y)0.45%
ROE(5y)1.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
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 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-21.46%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.37%
GM growth 5Y0.62%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 5.49% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 285.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.24 | ||
| Quick Ratio | 4.98 | ||
| Altman-Z | 11.93 |
F-Score5
WACC9.88%
ROIC/WACCN/A
Cap/Depr(3y)70.98%
Cap/Depr(5y)49.53%
Cap/Sales(3y)19.65%
Cap/Sales(5y)12.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.33%
EPS 3Y-3.83%
EPS 5Y13.44%
EPS Q2Q%10.83%
EPS Next Y9.09%
EPS Next 2Y8.29%
EPS Next 3Y12.87%
EPS Next 5Y11.18%
Revenue 1Y (TTM)53.39%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%46.34%
Revenue Next Year18.06%
Revenue Next 2Y18.37%
Revenue Next 3Y18.32%
Revenue Next 5Y16.24%
EBIT growth 1Y-1110.95%
EBIT growth 3Y-33.64%
EBIT growth 5YN/A
EBIT Next Year454.88%
EBIT Next 3Y133.64%
EBIT Next 5YN/A
FCF growth 1Y-52.03%
FCF growth 3Y10.79%
FCF growth 5YN/A
OCF growth 1Y-56.59%
OCF growth 3Y7.17%
OCF growth 5YN/A