Ligand Pharmaceuticals Inc

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LGND : NASDAQ : Health Care
$136.07 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 374,400
07/27/16 - 4:00 PM ET

Financial Analysis


LIGAND PHARMACEUTICAL INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. LIGAND PHARMACEUTICAL INC is extremely liquid. Currently, the Quick Ratio is 10.64 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 1,015.50% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)29.6514.6
EBITDA ($mil)17.924.22
EBIT ($mil)15.343.57
Net Income ($mil)6.610.75


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)113.2177.23
Total Assets ($mil)613.44263.22
Total Debt ($mil)204.65198.57
Equity ($mil)392.0835.15


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin96.9593.03
EBITDA Margin60.4228.91
Operating Margin51.7424.46
Sales Turnover0.140.24
Return on Assets42.894.05
Return on Equity66.9330.38
Debt Q1 FY16 Q1 FY15
Current Ratio10.8710.56
Debt/Capital0.340.85
Interest Expense3.012.97
Interest Coverage5.11.2


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)20.8219.66
Div / share0.00.0
EPS0.260.04
Book value / share18.841.79
Institutional Own % n/a n/a
Avg Daily Volume385341.0426711.0

Valuation


BUY. LIGAND PHARMACEUTICAL INC's P/E ratio indicates a significant discount compared to an average of 40.39 for the Biotechnology industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 7.01 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.16. 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 10.80 Peers 40.39   LGND 56.49 Peers 21.72

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 significant 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 26.23 Peers 122.62   LGND NM Peers 1.15

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

LGND is trading at a significant discount to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LGND 7.01 Peers 11.16   LGND 2296.07 Peers -19.12

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 31.59 Peers 425.82   LGND 37.63 Peers 40.81

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

LGND is keeping pace with its peers on the basis of sales growth.

 

 

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