LIGAND PHARMACEUTICALS (LGND)
US53220K5048 - Common Stock
We assign a fundamental rating of 6 out of 10 to LGND. LGND was compared to 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 correct valuation and a medium growth rate.
1. Profitability
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.
Of the past 5 years LGND 4 years had a positive operating cash flow.
1.2 Ratios
LGND has a better Return On Assets (6.63%) than 89.74% of its industry peers.
With an excellent Return On Equity value of 7.44%, LGND belongs to the best of the industry, outperforming 88.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.01%, LGND is in the better half of the industry, outperforming 77.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LGND is significantly below the industry average of 16.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 7.44% | ||
| ROIC | 1.01% |
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
Looking at the Profit Margin, with a value of 39.72%, LGND belongs to the top of the industry, outperforming 96.41% of the companies in the same industry.
LGND's Profit Margin has declined in the last couple of years.
LGND has a Operating Margin of 7.49%. This is amongst the best in the industry. LGND outperforms 81.03% of its industry peers.
LGND's Operating Margin has declined in the last couple of years.
The Gross Margin of LGND (91.99%) is better than 94.36% of its industry peers.
LGND's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.49% | ||
| PM (TTM) | 39.72% | ||
| GM | 91.99% |
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
LGND has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LGND has more shares outstanding
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 10.13. This indicates that LGND is financially healthy and has little risk of bankruptcy at the moment.
LGND has a Altman-Z score of 10.13. This is amongst the best in the industry. LGND outperforms 87.69% 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 | N/A | ||
| Altman-Z | 10.13 |
ROIC/WACC0.11
WACC9.05%
2.3 Liquidity
A Current Ratio of 14.15 indicates that LGND has no problem at all paying its short term obligations.
The Current ratio of LGND (14.15) is better than 90.77% of its industry peers.
LGND has a Quick Ratio of 12.72. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 12.72, LGND belongs to the best of the industry, outperforming 88.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.15 | ||
| Quick Ratio | 12.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.52% over the past year.
The Earnings Per Share has been decreasing by -3.15% on average over the past years.
The Revenue for LGND has decreased by -27.13% in the past year. This is quite bad
Measured over the past years, LGND shows a very negative growth in Revenue. The Revenue has been decreasing by -12.19% on average per year.
EPS 1Y (TTM)42.52%
EPS 3Y10.27%
EPS 5Y-3.15%
EPS growth Q2Q1.47%
Revenue 1Y (TTM)-27.13%
Revenue growth 3Y-11.02%
Revenue growth 5Y-12.19%
Revenue growth Q2Q3.89%
3.2 Future
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
Based on estimates for the next years, LGND will show a very strong growth in Revenue. The Revenue will grow by 21.37% on average per year.
EPS Next Y-25.51%
EPS Next 2Y-3.2%
EPS Next 3Y8.46%
EPS Next 5YN/A
Revenue Next Year6.63%
Revenue Next 2Y11.57%
Revenue Next 3Y19.55%
Revenue Next 5Y21.37%
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
The Price/Earnings ratio is 11.57, which indicates a very decent valuation of LGND.
Compared to the rest of the industry, the Price/Earnings ratio of LGND indicates a rather cheap valuation: LGND is cheaper than 90.26% of the companies listed in the same industry.
LGND's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.84.
A Price/Forward Earnings ratio of 15.53 indicates a correct valuation of LGND.
Based on the Price/Forward Earnings ratio, LGND is valued cheaper than 84.62% of the companies in the same industry.
LGND's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
LGND's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LGND is cheaper than 78.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.11 |
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 2Y-3.2%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
No dividends for LGND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIGAND PHARMACEUTICALS
NASDAQ:LGND (4/26/2024, 7:01:09 PM)
After market: 70.57 0 (0%)70.57
+0.2 (+0.28%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 15.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 7.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.49% | ||
| PM (TTM) | 39.72% | ||
| GM | 91.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 14.15 | ||
| Quick Ratio | 12.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)42.52%
EPS 3Y10.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y-25.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-27.13%
Revenue growth 3Y-11.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y