Galapagos NV
Galapagos NV Fundamental Analysis
Galapagos NV (GLPGF) shows strong financial fundamentals with a PE ratio of 5.92, profit margin of 28.83%, and ROE of 11.15%. The company generates $1.1B in annual revenue with strong year-over-year growth of 14.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GLPGF's fundamental strength across five key dimensions:
Efficiency Score
WeakGLPGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGLPGF trades at attractive valuation levels.
Growth Score
ModerateGLPGF shows steady but slowing expansion.
Financial Health Score
ExcellentGLPGF maintains a strong and stable balance sheet.
Profitability Score
WeakGLPGF struggles to sustain strong margins.
Key Financial Metrics
Is GLPGF Expensive or Cheap?
P/E Ratio
GLPGF trades at 5.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GLPGF's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Galapagos NV at 0.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.60 times EBITDA. This is generally considered low.
How Well Does GLPGF Make Money?
Net Profit Margin
For every $100 in sales, Galapagos NV keeps $28.83 as profit after all expenses.
Operating Margin
Core operations generate 25.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.15 in profit for every $100 of shareholder equity.
ROA
Galapagos NV generates $9.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Galapagos NV generates limited operating cash flow of $-252.38M, signaling weaker underlying cash strength.
Free Cash Flow
Galapagos NV generates weak or negative free cash flow of $-266.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.04 in free cash annually.
FCF Yield
GLPGF converts -14.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
20.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GLPGF Stacks Against Its Sector Peers
| Metric | GLPGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.92 | 29.45 | Better (Cheaper) |
| ROE | 11.15% | 779.00% | Weak |
| Net Margin | 28.83% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 20.15 | 4.65 | Strong Liquidity |
| ROA | 9.41% | -19344.00% (disorted) | Weak |
GLPGF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Galapagos NV's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-71.48%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-56.78%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-108.72%
Industry Style: Defensive, Growth, Innovation
Declining