Ligand Pharmaceuticals, Inc.
Ligand Pharmaceuticals, Inc. Fundamental Analysis
Ligand Pharmaceuticals, Inc. (LGNZZ) shows strong financial fundamentals with a PE ratio of 0.01, profit margin of 46.42%, and ROE of 13.86%. 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 78.1/100 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 LGNZZ's fundamental strength across five key dimensions:
Efficiency Score
WeakLGNZZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLGNZZ trades at attractive valuation levels.
Growth Score
ModerateLGNZZ shows steady but slowing expansion.
Financial Health Score
ExcellentLGNZZ maintains a strong and stable balance sheet.
Profitability Score
ModerateLGNZZ maintains healthy but balanced margins.
Key Financial Metrics
Is LGNZZ Expensive or Cheap?
P/E Ratio
LGNZZ trades at 0.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LGNZZ's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ligand Pharmaceuticals, Inc. at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.46 times EBITDA. This is generally considered low.
How Well Does LGNZZ Make Money?
Net Profit Margin
For every $100 in sales, Ligand Pharmaceuticals, Inc. keeps $46.42 as profit after all expenses.
Operating Margin
Core operations generate 17.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.86 in profit for every $100 of shareholder equity.
ROA
Ligand Pharmaceuticals, Inc. generates $7.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ligand Pharmaceuticals, Inc. produces operating cash flow of $49.90M, showing steady but balanced cash generation.
Free Cash Flow
Ligand Pharmaceuticals, Inc. generates strong free cash flow of $49.44M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.48 in free cash annually.
FCF Yield
LGNZZ converts 33.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.01
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
0.005
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
22.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How LGNZZ Stacks Against Its Sector Peers
| Metric | LGNZZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.01 | 28.45 | Better (Cheaper) |
| ROE | 13.86% | 763.00% | Weak |
| Net Margin | 46.42% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 0.34 | Weak (High Leverage) |
| Current Ratio | 22.23 | 2795.60 | Strong Liquidity |
| ROA | 7.97% | -16588.00% (disorted) | Weak |
LGNZZ 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, Inc.'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