Galapagos N.V. Sponsored ADR
Galapagos N.V. Sponsored ADR Fundamental Analysis
Galapagos N.V. Sponsored ADR (LKFT) shows moderate financial fundamentals with a PE ratio of 3.28, profit margin of 46.83%, and ROE of 16.88%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.5/100 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 LKFT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLKFT demonstrates superior asset utilization.
Valuation Score
ExcellentLKFT trades at attractive valuation levels.
Growth Score
ModerateLKFT shows steady but slowing expansion.
Financial Health Score
ExcellentLKFT maintains a strong and stable balance sheet.
Profitability Score
ModerateLKFT maintains healthy but balanced margins.
Key Financial Metrics
Is LKFT Expensive or Cheap?
P/E Ratio
LKFT trades at 3.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LKFT's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Galapagos N.V. Sponsored ADR at 0.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.17 times EBITDA. This is generally considered low.
How Well Does LKFT Make Money?
Net Profit Margin
For every $100 in sales, Galapagos N.V. Sponsored ADR keeps $46.83 as profit after all expenses.
Operating Margin
Core operations generate 57.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.88 in profit for every $100 of shareholder equity.
ROA
Galapagos N.V. Sponsored ADR generates $14.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Galapagos N.V. Sponsored ADR generates limited operating cash flow of $-301.71M, signaling weaker underlying cash strength.
Free Cash Flow
Galapagos N.V. Sponsored ADR generates weak or negative free cash flow of $-310.45M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.71 in free cash annually.
FCF Yield
LKFT converts -19.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
30.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How LKFT Stacks Against Its Sector Peers
| Metric | LKFT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.28 | 29.38 | Better (Cheaper) |
| ROE | 16.88% | 739.00% | Weak |
| Net Margin | 46.83% | -53619.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 30.48 | 4.03 | Strong Liquidity |
| ROA | 14.49% | -20116.00% (disorted) | Strong |
LKFT outperforms its industry in 5 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 N.V. Sponsored ADR's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation