Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
In this section, we usually try to help investors determine whether Lexicon Pharmaceuticals is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Lexicon Pharmaceuticals has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.
This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.
Show me the analysis anyway
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Lexicon Pharmaceuticals. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Lexicon Pharmaceuticals's earnings available for a low price, and how does
this compare to other companies in the same industry?
When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Lexicon Pharmaceuticals's regulatory filings and announcements.
Lexicon Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
Lexicon Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Lexicon Pharmaceuticals's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Lexicon Pharmaceuticals's finances.
The net worth of a company is the difference between its assets and liabilities.
Lexicon Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Lexicon Pharmaceuticals's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Lexicon Pharmaceuticals's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Lexicon Pharmaceuticals has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Lonnel Coats has been the Chief Executive Officer and President of Lexicon Pharmaceuticals, Inc., since July 7, 2014. Mr. Coats served as an Executive Vice President, President of Americas Region at Eisai Inc. He served as the Chief Executive Officer of Eisai Inc from June 18, 2010 to April 1, 2014 and President of Eisai Inc from 2004 to April 1, 2014 and served as its Vice President and Senior Vice President. He was Executive Officer at Eisai Inc from April 1, 2014 to June 2014. He served in a series of leadership positions at Eisai Inc. and Eisai Corporation of North America, U.S. subsidiaries of Tokyo-based Eisai Co., Ltd., from 1996 to June 2014. Mr. Coats also previously held a variety of sales and management positions at Janssen Pharmaceuticals, Inc., a division of Johnson & Johnson, from 1988 to 1996. Mr. Coats served as Chief Executive Officer and President of Eisai, Inc. until April 1, 2014. He served as Chief Operating Officer at Eisai Corporation of North America, Inc until June 2010 and President. He served as Executive Vice President at Eisai Co., Ltd. and its Senior Vice President since June 2010. He served as Vice President at Eisai Co., Ltd. until June 2010. He served as the Chief Operating Officer of Eisai Inc from 2004 to June 18, 2010. Mr. Coats has been a Director of Blueprint Medicines Corporation since February 4, 2016 and Lexicon Pharmaceuticals, Inc. since July 2014. Mr. Coats served as a Director of MGI Pharma, Inc. since January 2008. He serves as Member of Board of Governors at Hackensack University Medical Center. He holds a B.S. in Public Administration from Oakland University in Michigan. Eisai
Lonnel's compensation has increased whilst company is loss making.
Lonnel's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Lexicon Pharmaceuticals management team is over 5 years, this suggests they are a seasoned and experienced team.
Executive VP of Corporate & Administrative Affairs and CFO
Executive VP & Chief Medical Officer
Executive Vice President of Research & Development
Executive VP & Chief Commercial Officer
Consultant & Director
Vice President of Finance & Accounting
Head of Investor Relations & Corporate Strategy
Executive Director of Corporate Communications & Patient Advocacy
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Lexicon Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Chairman of the Board
Consultant & Director
Chairman of Medical Advisory Board & Independent Director
Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products. The company offers XERMELO, an orally-delivered small molecule drug candidate for the treatment of carcinoid syndrome diarrhea in combination with somatostatin analog therapy in adults. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that is in Phase III clinical trials for the treatment of type 1 and type 2 diabetes; LX9211, which is in Phase Ib clinical development for the treatment of neuropathic pain; and LX2761 that is in Phase I clinical development for the treatment of diabetes. The company has strategic collaboration and license agreements with Sanofi; Ipsen Pharma SAS; Bristol-Myers Squibb Company; and Genentech, Inc. Lexicon Pharmaceuticals, Inc. was founded in 1995 and is headquartered in The Woodlands, Texas.
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