Ligand Pharmaceuticals Inc

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LGND : NASDAQ : Health Care
$111.17 | %
Today's Range: 110.45 - 111.9
Avg. Daily Volume: 268000.0
04/28/17 - 4:00 PM ET

Financial Analysis

LIGAND PHARMACEUTICAL INC's gross profit margin for the fourth 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 0.70 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 33.92% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)38.1921.19
EBITDA ($mil)22.4911.94
EBIT ($mil)19.5211.25
Net Income ($mil)-3.136.34

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)141.05200.22
Total Assets ($mil)601.59503.06
Total Debt ($mil)212.91201.99
Equity ($mil)370.85276.91

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin93.0396.26
EBITDA Margin58.956.32
Operating Margin51.1353.09
Sales Turnover0.180.14
Return on Assets-0.2745.68
Return on Equity-0.6382.99
Debt Q4 FY16 Q4 FY15
Current Ratio0.720.96
Interest Expense3.012.93
Interest Coverage6.53.84

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)20.9119.95
Div / share0.00.0
Book value / share17.7413.88
Institutional Own % n/a n/a
Avg Daily Volume275829.0329445.0


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 5.93 indicates a significant premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 11.43. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LGND NM Peers 37.21   LGND 34.93 Peers 24.72

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.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
LGND 28.07 Peers 43.15   LGND NA Peers 0.49

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

LGND is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LGND 5.93 Peers 11.43   LGND -101.30 Peers 149.25

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LGND 20.20 Peers 191.95   LGND 51.53 Peers 395.13

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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