Ligand Pharmaceuticals Inc.

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LGND : NASDAQ : Health Technology
$153.81 | %
Today's Range: 151.3001 - 155.49
Avg. Daily Volume: 230300.0
02/23/18 - 4:00 PM ET

Financial Analysis


LIGAND PHARMACEUTICAL INC's gross profit margin for the third quarter of its fiscal year 2017 has decreased 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 has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 14.67% 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.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)33.3821.62
EBITDA ($mil)18.518.65
EBIT ($mil)16.495.71
Net Income ($mil)8.431.05


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)202.26124.12
Total Assets ($mil)662.34600.87
Total Debt ($mil)221.56210.12
Equity ($mil)424.76370.39


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin90.7996.43
EBITDA Margin55.4639.98
Operating Margin49.4226.42
Sales Turnover0.190.15
Return on Assets2.481.3
Return on Equity3.871.91
Debt Q3 FY17 Q3 FY16
Current Ratio0.970.62
Debt/Capital0.340.36
Interest Expense2.823.12
Interest Coverage5.841.83


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)21.120.9
Div / share0.00.0
EPS0.360.05
Book value / share20.1417.72
Institutional Own % n/a n/a
Avg Daily Volume255343.0240720.0

Valuation


BUY. LIGAND PHARMACEUTICAL INC's P/E ratio indicates a significant premium compared to an average of 46.82 for the Biotechnology industry and a significant premium compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 7.81 indicates a significant premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 15.63. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LGND 227.80 Peers 46.82   LGND 39.75 Peers 41.91

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

LGND is trading at a significant premium to its peers.

 

Average. 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 valuation on par 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 39.69 Peers 28.60   LGND NM Peers 0.35

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.

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 7.81 Peers 15.63   LGND 130.00 Peers 2.21

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 25.74 Peers 87.22   LGND 40.05 Peers 120.94

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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