Ligand Pharmaceuticals Inc

Find Ratings Reports
LGND : NASDAQ : Health Care
$119.15 -3.2 | -2.6%
Today's Range: 118.98 - 122.675
Avg. Daily Volume: 220400.0
06/27/17 - 3:59 PM ET

Financial Analysis


LIGAND PHARMACEUTICAL INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LIGAND PHARMACEUTICAL INC has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 9.37% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)29.2729.65
EBITDA ($mil)13.217.92
EBIT ($mil)10.2215.34
Net Income ($mil)5.086.61


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)159.37113.2
Total Assets ($mil)629.72585.96
Total Debt ($mil)215.75204.65
Equity ($mil)398.78364.6


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin99.7496.95
EBITDA Margin45.0860.42
Operating Margin34.9151.74
Sales Turnover0.170.15
Return on Assets-0.540.22
Return on Equity-0.7964.44
Debt Q1 FY17 Q1 FY16
Current Ratio0.7710.87
Debt/Capital0.350.36
Interest Expense2.943.01
Interest Coverage3.475.1


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)21.020.82
Div / share0.00.0
EPS0.220.26
Book value / share18.9917.52
Institutional Own % n/a n/a
Avg Daily Volume219173.0301916.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 6.48 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 11.09. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing 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 NM Peers 41.96   LGND 34.81 Peers 43.61

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

LGND's P/E is negative making this valuation measure meaningless.

 

Discount. 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 discount 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 32.40 Peers 26.44   LGND NA Peers 0.54

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.

 

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LGND 6.48 Peers 11.09   LGND -101.64 Peers -9.68

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.

 

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

However, LGND is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LGND 23.81 Peers 172.46   LGND 24.87 Peers 462.34

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

 

 

Latest Stock Upgrades/Downgrades