Ligand Pharmaceuticals Incorporated
Ligand Pharmaceuticals Incorporated Fundamental Analysis
Ligand Pharmaceuticals Incorporated (LGND) shows strong financial fundamentals with a PE ratio of 28.14, profit margin of 55.95%, and ROE of 16.19%. The company generates $0.3B in annual revenue with strong year-over-year growth of 60.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LGND's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLGND demonstrates superior asset utilization.
Valuation Score
ModerateLGND shows balanced valuation metrics.
Growth Score
ExcellentLGND delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLGND maintains a strong and stable balance sheet.
Profitability Score
ExcellentLGND achieves industry-leading margins.
Key Financial Metrics
Is LGND Expensive or Cheap?
P/E Ratio
LGND trades at 28.14 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LGND's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Ligand Pharmaceuticals Incorporated at 4.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.83 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 $55.95 as profit after all expenses.
Operating Margin
Core operations generate 36.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.19 in profit for every $100 of shareholder equity.
ROA
Ligand Pharmaceuticals Incorporated generates $10.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ligand Pharmaceuticals Incorporated generates strong operating cash flow of $124.40M, reflecting robust business health.
Free Cash Flow
Ligand Pharmaceuticals Incorporated generates strong free cash flow of $123.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.18 in free cash annually.
FCF Yield
LGND converts 2.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
21.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How LGND Stacks Against Its Sector Peers
| Metric | LGND Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.14 | 29.36 | Neutral |
| ROE | 16.19% | 733.00% | Weak |
| Net Margin | 55.95% | -46094.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.46 | Neutral |
| Current Ratio | 21.28 | 4.35 | Strong Liquidity |
| ROA | 10.02% | -21034.00% (disorted) | Strong |
LGND outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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
37.18%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
3589.49%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-24.32%
Industry Style: Defensive, Growth, Innovation
Declining