Ligand Pharmaceuticals Inc

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LGND : NASDAQ : Health Care
$105.71 | %
Today's Range: 103.395 - 107.06
Avg. Daily Volume: 282500.0
02/17/17 - 4:00 PM ET

Financial Analysis


LIGAND PHARMACEUTICAL INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. LIGAND PHARMACEUTICAL INC has weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 26.76% 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 FY16 Q3 FY15
Net Sales ($mil)21.6217.7
EBITDA ($mil)8.659.59
EBIT ($mil)5.718.94
Net Income ($mil)1.05199.17


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)124.12187.9
Total Assets ($mil)600.87521.7
Total Debt ($mil)210.12202.95
Equity ($mil)370.39292.18


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin96.4393.23
EBITDA Margin39.9854.15
Operating Margin26.4250.52
Sales Turnover0.150.14
Return on Assets1.344.18
Return on Equity1.9178.9
Debt Q3 FY16 Q3 FY15
Current Ratio0.6212.94
Debt/Capital0.360.41
Interest Expense3.122.93
Interest Coverage1.833.05


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)20.919.92
Div / share0.00.0
EPS0.059.28
Book value / share17.7214.67
Institutional Own % n/a n/a
Avg Daily Volume281090.0407124.0

Valuation


HOLD. LIGAND PHARMACEUTICAL INC's P/E ratio indicates a significant premium compared to an average of 37.42 for the Biotechnology industry and a significant premium compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 5.94 indicates a significant premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 11.06. 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 351.10 Peers 37.42   LGND 39.11 Peers 19.90

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.

 

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 21.02 Peers 41.46   LGND NM Peers 0.53

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 5.94 Peers 11.06   LGND -97.22 Peers 125.26

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 23.93 Peers 146.34   LGND 24.76 Peers 626.06

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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