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Ligand Pharmaceuticals Inc
LGND : NASDAQ : Health Care
$89.58 up0.79 | 0.89%
Today's Range: 86.89 - 93.71
Avg. Daily Volume: 383,600
02/09/16 - 3:59 PM ET

Financial Analysis


LIGAND PHARMACEUTICAL INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LIGAND PHARMACEUTICAL INC is extremely liquid. Currently, the Quick Ratio is 12.26 which clearly shows the ability to cover any short-term cash needs. LGND managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 558.48% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)17.714.97
EBITDA ($mil)9.594.37
EBIT ($mil)8.943.71
Net Income ($mil)224.541.28


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)187.9186.59
Total Assets ($mil)521.7272.28
Total Debt ($mil)202.95193.97
Equity ($mil)292.1844.37


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin96.5894.42
EBITDA Margin54.1529.21
Operating Margin50.5224.8
Sales Turnover0.140.21
Return on Assets49.052.51
Return on Equity87.5815.41
Debt Q3 FY15 Q3 FY14
Current Ratio12.9410.77
Debt/Capital0.410.81
Interest Expense2.931.52
Interest Coverage3.052.45


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)19.9220.12
Div / share0.00.0
EPS10.460.06
Book value / share14.672.21
Institutional Own % n/a n/a
Avg Daily Volume379762.0342975.0

Valuation


BUY. LIGAND PHARMACEUTICAL INC's P/E ratio indicates a significant discount compared to an average of 38.57 for the Biotechnology industry and a significant discount compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 6.74 indicates a significant premium versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 10.43. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, LIGAND PHARMACEUTICAL INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LGND 8.28 Peers 38.57   LGND 50.83 Peers 42.62

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

LGND is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LGND is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LGND 29.53 Peers 16.42   LGND 0.02 Peers 0.40

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

LGND is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LGND trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LGND 6.74 Peers 10.43   LGND 3634.37 Peers 39.78

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LGND is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

LGND is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LGND 26.73 Peers 141.92   LGND 31.00 Peers 53.93

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LGND is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LGND significantly trails its peers on the basis of sales growth

 

 

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