RIGEL PHARMACEUTICALS INC (RIGL) Stock Fundamental Analysis
NASDAQ:RIGL - Nasdaq - US7665597024 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RIGL. RIGL was compared to 562 industry peers in the Biotechnology industry. Both the profitability and the financial health of RIGL get a neutral evaluation. Nothing too spectacular is happening here. RIGL is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, RIGL could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
RIGL had positive earnings in the past year.
RIGL had a positive operating cash flow in the past year.
In the past 5 years RIGL reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: RIGL reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.13%, RIGL belongs to the top of the industry, outperforming 98.76% of the companies in the same industry.
RIGL's Return On Equity of 200.24% is amongst the best of the industry. RIGL outperforms 99.82% of its industry peers.
With an excellent Return On Invested Capital value of 31.74%, RIGL belongs to the best of the industry, outperforming 99.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.13% | ||
| ROE | 200.24% | ||
| ROIC | 31.74% |
ROA(3y)-18.12%
ROA(5y)-18.4%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RIGL has a better Profit Margin (18.31%) than 95.92% of its industry peers.
Looking at the Operating Margin, with a value of 21.63%, RIGL belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
The Gross Margin of RIGL (89.64%) is better than 91.13% of its industry peers.
In the last couple of years the Gross Margin of RIGL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.63% | ||
| PM (TTM) | 18.31% | ||
| GM | 89.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.38%
GM growth 5Y-1.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RIGL is creating value.
RIGL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RIGL has been reduced compared to 5 years ago.
RIGL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -7.17, we must say that RIGL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -7.17, RIGL is doing worse than 68.44% of the companies in the same industry.
The Debt to FCF ratio of RIGL is 1.69, which is an excellent value as it means it would take RIGL, only 1.69 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.69, RIGL belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
RIGL has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
RIGL has a worse Debt to Equity ratio (2.42) than 81.74% of its industry peers.
Although RIGL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | -7.17 |
ROIC/WACC3
WACC10.59%
2.3 Liquidity
A Current Ratio of 2.20 indicates that RIGL has no problem at all paying its short term obligations.
With a Current ratio value of 2.20, RIGL is not doing good in the industry: 73.94% of the companies in the same industry are doing better.
RIGL has a Quick Ratio of 2.13. This indicates that RIGL is financially healthy and has no problem in meeting its short term obligations.
RIGL has a worse Quick ratio (2.13) than 73.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
RIGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 162.67%, which is quite impressive.
The Revenue has grown by 68.74% in the past year. This is a very strong growth!
Measured over the past years, RIGL shows a very strong growth in Revenue. The Revenue has been growing by 24.77% on average per year.
EPS 1Y (TTM)162.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%233.84%
Revenue 1Y (TTM)68.74%
Revenue growth 3Y6.31%
Revenue growth 5Y24.77%
Sales Q2Q%80.58%
3.2 Future
Based on estimates for the next years, RIGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.07% on average per year.
Based on estimates for the next years, RIGL will show a quite strong growth in Revenue. The Revenue will grow by 11.81% on average per year.
EPS Next Y12.77%
EPS Next 2Y37%
EPS Next 3Y55.21%
EPS Next 5Y14.07%
Revenue Next Year26.13%
Revenue Next 2Y16.3%
Revenue Next 3Y14.93%
Revenue Next 5Y11.81%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
RIGL is valuated rather expensively with a Price/Earnings ratio of 19.97.
Based on the Price/Earnings ratio, RIGL is valued cheaper than 95.39% of the companies in the same industry.
RIGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable valuation of RIGL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIGL indicates a rather cheap valuation: RIGL is cheaper than 96.28% of the companies listed in the same industry.
RIGL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIGL is valued cheaply inside the industry as 99.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RIGL is valued cheaper than 98.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RIGL has a very decent profitability rating, which may justify a higher PE ratio.
RIGL's earnings are expected to grow with 55.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y37%
EPS Next 3Y55.21%
5. Dividend
5.1 Amount
No dividends for RIGL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.77
-0.13 (-0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners69.99%
Inst Owner Change-54.08%
Ins Owners2.63%
Ins Owner Change7.55%
Market Cap335.42M
Analysts76.67
Price Target34.34 (82.95%)
Short Float %10.7%
Short Ratio8.45
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)14.16%
Min Revenue beat(2)9.15%
Max Revenue beat(2)19.17%
Revenue beat(4)4
Avg Revenue beat(4)16.43%
Min Revenue beat(4)8.08%
Max Revenue beat(4)29.32%
Revenue beat(8)7
Avg Revenue beat(8)8.14%
Revenue beat(12)10
Avg Revenue beat(12)14.32%
Revenue beat(16)11
Avg Revenue beat(16)10.8%
PT rev (1m)0%
PT rev (3m)10.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)10.6%
Revenue NY rev (3m)10%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 10.64 | ||
| P/S | 1.65 | ||
| P/FCF | 9.49 | ||
| P/OCF | 9.42 | ||
| P/B | 18.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)0.94
EY5.01%
EPS(NY)1.76
Fwd EY9.4%
FCF(TTM)1.98
FCFY10.53%
OCF(TTM)1.99
OCFY10.61%
SpS11.36
BVpS1.04
TBVpS-0.44
PEG (NY)1.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.13% | ||
| ROE | 200.24% | ||
| ROCE | 40.18% | ||
| ROIC | 31.74% | ||
| ROICexc | 107.63% | ||
| ROICexgc | 605.47% | ||
| OM | 21.63% | ||
| PM (TTM) | 18.31% | ||
| GM | 89.64% | ||
| FCFM | 17.4% |
ROA(3y)-18.12%
ROA(5y)-18.4%
ROE(3y)N/A
ROE(5y)N/A
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)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.38%
GM growth 5Y-1.87%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.27 | ||
| Cash Conversion | 76.77% | ||
| Profit Quality | 95.04% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | -7.17 |
F-Score6
WACC10.59%
ROIC/WACC3
Cap/Depr(3y)424.8%
Cap/Depr(5y)301.24%
Cap/Sales(3y)4.48%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)162.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%233.84%
EPS Next Y12.77%
EPS Next 2Y37%
EPS Next 3Y55.21%
EPS Next 5Y14.07%
Revenue 1Y (TTM)68.74%
Revenue growth 3Y6.31%
Revenue growth 5Y24.77%
Sales Q2Q%80.58%
Revenue Next Year26.13%
Revenue Next 2Y16.3%
Revenue Next 3Y14.93%
Revenue Next 5Y11.81%
EBIT growth 1Y398.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.99%
EBIT Next 3Y76.86%
EBIT Next 5YN/A
FCF growth 1Y152.41%
FCF growth 3Y80.89%
FCF growth 5YN/A
OCF growth 1Y168.2%
OCF growth 3Y74.92%
OCF growth 5YN/A