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LIGAND PHARMACEUTICALS (LGND) Stock Fundamental Analysis

NASDAQ:LGND - Nasdaq - US53220K5048 - Common Stock - Currency: USD

112.9  -1.17 (-1.03%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to LGND. LGND was compared to 195 industry peers in the Pharmaceuticals industry. LGND has an excellent financial health rating, but there are some minor concerns on its profitability. LGND has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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4

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.
LGND had a positive operating cash flow in each of the past 5 years.
LGND Yearly Net Income VS EBIT VS OCF VS FCFLGND Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

LGND has a Return On Assets of -14.60%. This is in the better half of the industry: LGND outperforms 65.64% of its industry peers.
Looking at the Return On Equity, with a value of -16.60%, LGND is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
Industry RankSector 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
LGND Yearly ROA, ROE, ROICLGND Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

In the last couple of years the Operating Margin of LGND has declined.
LGND's Gross Margin of 92.81% is amongst the best of the industry. LGND outperforms 95.90% of its industry peers.
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 RankSector 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%
LGND Yearly Profit, Operating, Gross MarginsLGND Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400 500

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7

2. Health

2.1 Basic Checks

LGND does not have a ROIC to compare to the WACC, probably because it is not profitable.
LGND has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LGND has been increased compared to 5 years ago.
The debt/assets ratio for LGND is higher compared to a year ago.
LGND Yearly Shares OutstandingLGND Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
LGND Yearly Total Debt VS Total AssetsLGND Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

2.2 Solvency

An Altman-Z score of 13.18 indicates that LGND is not in any danger for bankruptcy at the moment.
LGND's Altman-Z score of 13.18 is amongst the best of the industry. LGND outperforms 88.72% of its industry peers.
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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 13.18
ROIC/WACCN/A
WACC9.8%
LGND Yearly LT Debt VS Equity VS FCFLGND Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

LGND has a Current Ratio of 5.24. This indicates that LGND is financially healthy and has no problem in meeting its short term obligations.
LGND has a Current ratio of 5.24. This is in the better half of the industry: LGND outperforms 72.31% of its industry peers.
A Quick Ratio of 4.98 indicates that LGND has no problem at all paying its short term obligations.
With a decent Quick ratio value of 4.98, LGND is doing good in the industry, outperforming 72.31% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.24
Quick Ratio 4.98
LGND Yearly Current Assets VS Current LiabilitesLGND Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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6

3. Growth

3.1 Past

LGND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.33%, which is quite good.
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 53.39%.
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)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

LGND is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.04% yearly.
The Revenue is expected to grow by 17.40% on average over the next years. This is quite good.
EPS Next Y8.94%
EPS Next 2Y11.74%
EPS Next 3Y12.9%
EPS Next 5Y12.04%
Revenue Next Year18.79%
Revenue Next 2Y18.83%
Revenue Next 3Y18.39%
Revenue Next 5Y17.4%

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.
LGND Yearly Revenue VS EstimatesLGND Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200M 400M 600M
LGND Yearly EPS VS EstimatesLGND Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

LGND is valuated rather expensively with a Price/Earnings ratio of 19.33.
LGND's Price/Earnings ratio is rather cheap when compared to the industry. LGND is cheaper than 83.08% of the companies in the same industry.
LGND is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.83, LGND is valued correctly.
LGND's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LGND is cheaper than 77.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LGND to the average of the S&P500 Index (21.03), we can say LGND is valued slightly cheaper.
Industry RankSector Rank
PE 19.33
Fwd PE 15.83
LGND Price Earnings VS Forward Price EarningsLGND Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

LGND's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LGND is cheaper than 75.90% of the companies in the same industry.
LGND's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LGND is cheaper than 78.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.49
EV/EBITDA 100.63
LGND Per share dataLGND EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 12.90% in the coming years.
PEG (NY)2.16
PEG (5Y)1.44
EPS Next 2Y11.74%
EPS Next 3Y12.9%

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0

5. Dividend

5.1 Amount

No dividends for LGND!.
Industry RankSector Rank
Dividend Yield N/A

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LIGAND PHARMACEUTICALS

NASDAQ:LGND (6/23/2025, 1:15:38 PM)

112.9

-1.17 (-1.03%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-04 2025-08-04/amc
Inst Owners99.56%
Inst Owner Change2.02%
Ins Owners1.68%
Ins Owner Change5.16%
Market Cap2.18B
Analysts84.62
Price Target146.75 (29.98%)
Short Float %6.52%
Short Ratio10.67
Dividend
Industry RankSector 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)0.26%
PT rev (3m)-0.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)1.29%
Valuation
Industry RankSector Rank
PE 19.33
Fwd PE 15.83
P/S 12
P/FCF 43.49
P/OCF 41.88
P/B 2.74
P/tB 8.85
EV/EBITDA 100.63
EPS(TTM)5.84
EY5.17%
EPS(NY)7.13
Fwd EY6.32%
FCF(TTM)2.6
FCFY2.3%
OCF(TTM)2.7
OCFY2.39%
SpS9.41
BVpS41.21
TBVpS12.75
PEG (NY)2.16
PEG (5Y)1.44
Profitability
Industry RankSector 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 RankSector 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 13.18
F-Score5
WACC9.8%
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 Y8.94%
EPS Next 2Y11.74%
EPS Next 3Y12.9%
EPS Next 5Y12.04%
Revenue 1Y (TTM)53.39%
Revenue growth 3Y-15.51%
Revenue growth 5Y6.8%
Sales Q2Q%46.34%
Revenue Next Year18.79%
Revenue Next 2Y18.83%
Revenue Next 3Y18.39%
Revenue Next 5Y17.4%
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