Ligand Pharmaceuticals Inc

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LGND : NASDAQ : Health Care
$115.78 | %
Today's Range: 115.72 - 118.04
Avg. Daily Volume: 409,600
09/23/16 - 4:00 PM ET

Financial Analysis

LIGAND PHARMACEUTICAL INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. LIGAND PHARMACEUTICAL INC has weak liquidity. Currently, the Quick Ratio is 0.55 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 467.55% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)19.5218.42
EBITDA ($mil)7.565.23
EBIT ($mil)4.754.58
Net Income ($mil)-5.7623.56

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)106.95182.21
Total Assets ($mil)616.8304.76
Total Debt ($mil)207.36200.57
Equity ($mil)391.9269.05

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin96.9886.17
EBITDA Margin38.7328.39
Operating Margin24.3324.89
Sales Turnover0.140.23
Return on Assets37.9110.71
Return on Equity59.4747.28
Debt Q2 FY16 Q2 FY15
Current Ratio0.5710.96
Interest Expense3.052.97
Interest Coverage1.561.54

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)20.8519.84
Div / share0.00.0
Book value / share18.793.48
Institutional Own % n/a n/a
Avg Daily Volume412366.0376586.0


BUY. LIGAND PHARMACEUTICAL INC's P/E ratio indicates a significant discount compared to an average of 44.84 for the Biotechnology industry and a significant discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 6.29 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 10.96. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LGND 10.91 Peers 44.84   LGND 50.73 Peers 22.14

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
LGND 23.31 Peers 34.20   LGND NM Peers 0.50

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.

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

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LGND 6.29 Peers 10.96   LGND 598.70 Peers 1.89

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LGND 27.98 Peers 681.73   LGND 24.04 Peers 52.29

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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