DB:LGDN

Stock Analysis Report

Executive Summary

Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide.

Rewards

PE ratio (3x) is below the German market (20.9x)

Revenue is forecast to grow 9.77% per year

Earnings grew by 339.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -162.7% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings



Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Ligand Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGDN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

LGDN

0.4%

DE Biotechs

0.2%

DE Market


1 Year Return

-11.9%

LGDN

9.0%

DE Biotechs

14.4%

DE Market

Return vs Industry: LGDN underperformed the German Biotechs industry which returned 7.2% over the past year.

Return vs Market: LGDN underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

LGDNIndustryMarket
7 Day5.1%0.4%0.2%
30 Day13.6%-2.1%0.9%
90 Day-6.6%8.0%4.6%
1 Year-11.9%-11.9%9.2%9.0%17.9%14.4%
3 Year-5.0%-5.0%45.5%43.9%15.7%5.6%
5 Year87.9%87.9%12.8%10.5%23.4%6.5%

Price Volatility Vs. Market

How volatile is Ligand Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ligand Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

3.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LGDN (€92) is trading above our estimate of fair value (€56.34)

Significantly Below Fair Value: LGDN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LGDN is good value based on its PE Ratio (3x) compared to the Biotechs industry average (43.8x).

PE vs Market: LGDN is good value based on its PE Ratio (3x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: LGDN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LGDN is good value based on its PB Ratio (2.2x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Ligand Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-156.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGDN's earnings are forecast to decline over the next 3 years (-162.7% per year).

Earnings vs Market: LGDN's earnings are forecast to decline over the next 3 years (-162.7% per year).

High Growth Earnings: LGDN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LGDN's revenue (9.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: LGDN's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LGDN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ligand Pharmaceuticals performed over the past 5 years?

50.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGDN has a high level of non-cash earnings.

Growing Profit Margin: LGDN's current net profit margins are higher than last year (57%).


Past Earnings Growth Analysis

Earnings Trend: LGDN's earnings have grown significantly by 50.7% per year over the past 5 years.

Accelerating Growth: LGDN's earnings growth over the past year (339.1%) exceeds its 5-year average (50.7% per year).

Earnings vs Industry: LGDN earnings growth over the past year (339.1%) exceeded the Biotechs industry -4.7%.


Return on Equity

High ROE: LGDN's Return on Equity (82%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ligand Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: LGDN's short term assets ($1.1B) exceed its short term liabilities ($17.0M).

Long Term Liabilities: LGDN's short term assets ($1.1B) exceed its long term liabilities ($685.1M).


Debt to Equity History and Analysis

Debt Level: LGDN's debt to equity ratio (83.2%) is considered high.

Reducing Debt: LGDN's debt to equity ratio has reduced from 799.9% to 83.2% over the past 5 years.

Debt Coverage: LGDN's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: Insufficient data to determine if LGDN's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: LGDN has a low level of unsold assets or inventory.

Debt Coverage by Assets: LGDN's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Ligand Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LGDN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LGDN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LGDN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LGDN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LGDN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

John Higgins (49yo)

13.1yrs

Tenure

US$6,306,803

Compensation

Mr. John L. Higgins has been the Chief Executive Officer at Ligand Pharmaceuticals Incorporated since January 16, 2007. He serves as the President and Chief Executive Officer of Moonstone Acquisition, Inc. ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.31M) is above average for companies of similar size in the German market ($USD1.47M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Higgins
CEO & Executive Director13.1yrsUS$6.31m1.17% $19.3m
Matthew Foehr
President & COO5.1yrsUS$3.32m0.88% $14.4m
Matthew Korenberg
Executive VP of Finance & CFO4.5yrsUS$2.67m0.15% $2.5m
Charles Berkman
Senior VP12.8yrsUS$1.74m0.30% $4.9m
Patrick O'Brien
Senior Vice President of Investor Relations0yrsno datano data
Todd Pettingill
Director of Corporate Development0yrsno datano data
Audrey Warfield-Graham
Senior VP of Human Resources13.1yrsno datano data
Keith Marschke
Senior Vice President of Biology & Scientific Affairs2.1yrsno datano data
Vincent Antle
Senior VP of Technical Operations - CAPTISOL2.1yrsno datano data

5.1yrs

Average Tenure

49yo

Average Age

Experienced Management: LGDN's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Higgins
CEO & Executive Director13.1yrsUS$6.31m1.17% $19.3m
John Kozarich
Independent Chairman12.9yrsUS$363.37k0.15% $2.5m
Todd Davis
Independent Director12.9yrsUS$343.37k0.28% $4.6m
John LaMattina
Independent Director9yrsUS$335.87k0.14% $2.2m
Sunil Patel
Independent Director9.3yrsUS$338.37k0.15% $2.5m
Stephen Sabba
Independent Director11.5yrsUS$353.37k0.13% $2.2m
Jason Aryeh
Independent Director13.4yrsUS$345.87k0.41% $6.8m
Shalendar Bhasin
Scientific Advisor0yrsno datano data
Sarah Boyce
Director0.3yrsno data0.0081% $134.5k
Nancy Gray
Independent Director2.5yrsUS$338.37k0.013% $210.5k

11.5yrs

Average Tenure

58yo

Average Age

Experienced Board: LGDN's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ligand Pharmaceuticals Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ligand Pharmaceuticals Incorporated
  • Ticker: LGDN
  • Exchange: DB
  • Founded: 1987
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.781b
  • Listing Market Cap: US$1.650b
  • Shares outstanding: 17.56m
  • Website: https://www.ligand.com

Number of Employees


Location

  • Ligand Pharmaceuticals Incorporated
  • 3911 Sorrento Valley Boulevard
  • Suite 110
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGNDNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 1994
LGDNDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1994

Biography

Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. Its commercial programs include Promacta, an oral medicine that increases the number of platelets in the blood; Kyprolis and Evomela, which are used to treat multiple myeloma; Baxdela, a captisol-enabled delafloxacin-IV for the treatment of acute bacterial skin and skin structure infections; Nexterone, a captisol-enabled formulation of amiodarone; Noxafil-IV, a captisol-enabled formulation of posaconazole for IV use; Carnexiv, which is indicated as replacement therapy for oral carbamazepine formulations; bazedoxifene for the treatment of postmenopausal osteoporosis; Aziyo portfolio of commercial pericardial repair and CanGaroo envelope extracellular matrix products; Exemptia for autoimmune diseases; Vivitra for breast cancer; and Bryxta for non-small cell lung cancer. The company’s partners programs, which are in clinical development used for the treatment of seizure, coma, cancer, diabetes, cardiovascular diseases, muscle wasting, liver and kidney diseases, and others. It is also developing a small molecule glucagon receptor antagonist for the treatment of Type 2 diabetes mellitus. In addition, the company is involved in the sale of Captisol materials. Ligand Pharmaceuticals Incorporated was founded in 1987 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:35
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.