Ligand Pharmaceuticals Incorporated
Ligand Pharmaceuticals Incorporated Fundamental Analysis
Ligand Pharmaceuticals Incorporated (LGND) shows moderate financial fundamentals with a PE ratio of 73.43, profit margin of 19.34%, and ROE of 5.71%. The company generates $0.3B in annual revenue with strong year-over-year growth of 27.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.8/100 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 LGND's fundamental strength across five key dimensions:
Efficiency Score
WeakLGND struggles to generate sufficient returns from assets.
Valuation Score
ModerateLGND shows balanced valuation metrics.
Growth Score
ModerateLGND shows steady but slowing expansion.
Financial Health Score
ExcellentLGND maintains a strong and stable balance sheet.
Profitability Score
ModerateLGND maintains healthy but balanced margins.
Key Financial Metrics
Is LGND Expensive or Cheap?
P/E Ratio
LGND trades at 73.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LGND's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values Ligand Pharmaceuticals Incorporated at 3.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 33.17 times EBITDA. This signals the market has high growth expectations.
How Well Does LGND Make Money?
Net Profit Margin
For every $100 in sales, Ligand Pharmaceuticals Incorporated keeps $19.34 as profit after all expenses.
Operating Margin
Core operations generate 6.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.71 in profit for every $100 of shareholder equity.
ROA
Ligand Pharmaceuticals Incorporated generates $3.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ligand Pharmaceuticals Incorporated produces operating cash flow of $32.43M, showing steady but balanced cash generation.
Free Cash Flow
Ligand Pharmaceuticals Incorporated generates strong free cash flow of $31.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.59 in free cash annually.
FCF Yield
LGND converts 0.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
73.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
24.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How LGND Stacks Against Its Sector Peers
| Metric | LGND Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 73.43 | 29.43 | Worse (Expensive) |
| ROE | 5.71% | 800.00% | Weak |
| Net Margin | 19.34% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.47 | 0.30 | Weak (High Leverage) |
| Current Ratio | 24.69 | 4.64 | Strong Liquidity |
| ROA | 3.29% | -17936.00% (disorted) | Weak |
LGND outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ligand Pharmaceuticals Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.31%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-100.67%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
443.56%
Industry Style: Defensive, Growth, Innovation
High Growth