Ligand Pharmaceuticals Incorporated
Ligand Pharmaceuticals Incorporated Fundamental Analysis
Ligand Pharmaceuticals Incorporated (LGNYZ) shows strong financial fundamentals with a PE ratio of 0.00, 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 80.4/100 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 LGNYZ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLGNYZ demonstrates superior asset utilization.
Valuation Score
ExcellentLGNYZ trades at attractive valuation levels.
Growth Score
ExcellentLGNYZ delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLGNYZ maintains a strong and stable balance sheet.
Profitability Score
ExcellentLGNYZ achieves industry-leading margins.
Key Financial Metrics
Is LGNYZ Expensive or Cheap?
P/E Ratio
LGNYZ trades at 0.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LGNYZ's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ligand Pharmaceuticals Incorporated at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.95 times EBITDA. This is generally considered low.
How Well Does LGNYZ 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 36.88 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 produces operating cash flow of $49.50M, showing steady but balanced cash generation.
Free Cash Flow
Ligand Pharmaceuticals Incorporated generates strong free cash flow of $49.05M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.46 in free cash annually.
FCF Yield
LGNYZ converts 66.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.005
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.001
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.003
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 LGNYZ Stacks Against Its Sector Peers
| Metric | LGNYZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.00 | 29.94 | Better (Cheaper) |
| ROE | 16.19% | 738.00% | Weak |
| Net Margin | 55.95% | -575975.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.44 | Neutral |
| Current Ratio | 21.28 | 4.49 | Strong Liquidity |
| ROA | 10.02% | -15756.00% (disorted) | Strong |
LGNYZ 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 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