ENXTAM:GLPG

Stock Analysis Report

Executive Summary

Galapagos NV, a clinical-stage biotechnology company, discovers, develops, and commercializes various small molecule medicines.

Rewards

Revenue is forecast to grow 6.48% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -2.4% per year for the next 3 years

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GLPG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

GLPG

2.9%

NL Biotechs

-1.0%

NL Market


1 Year Return

138.3%

GLPG

124.1%

NL Biotechs

14.3%

NL Market

Return vs Industry: GLPG exceeded the Dutch Biotechs industry which returned 102.2% over the past year.

Return vs Market: GLPG exceeded the Dutch Market which returned 16.2% over the past year.


Shareholder returns

GLPGIndustryMarket
7 Day3.1%2.9%-1.0%
30 Day13.3%11.7%0.3%
90 Day34.8%32.9%3.8%
1 Year138.3%138.3%124.2%124.1%19.2%14.3%
3 Year242.4%242.4%203.5%203.0%38.0%22.4%
5 Year1071.6%1071.6%72.4%68.3%60.0%28.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GLPG (€189.65) is trading above our estimate of fair value (€20.39)

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


Price To Earnings Ratio

PE vs Industry: GLPG is poor value based on its PE Ratio (37.4x) compared to the Biotechs industry average (35.3x).

PE vs Market: GLPG is poor value based on its PE Ratio (37.4x) compared to the Dutch market (20.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GLPG is overvalued based on its PB Ratio (4.6x) compared to the XE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Galapagos forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLPG's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: GLPG's earnings are forecast to decline over the next 3 years (-2.4% per year).

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

Revenue vs Market: GLPG's revenue (6.5% per year) is forecast to grow faster than the Dutch market (5.9% per year).

High Growth Revenue: GLPG's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLPG's Return on Equity is forecast to be low in 3 years time (0.5%).


Next Steps

Past Performance

How has Galapagos performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLPG has a large one-off loss of €140.5M impacting its September 30 2019 financial results.

Growing Profit Margin: GLPG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GLPG has become profitable over the past 5 years, growing earnings by 17.9% per year.

Accelerating Growth: GLPG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GLPG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: GLPG's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Galapagos's financial position?


Financial Position Analysis

Short Term Liabilities: GLPG's short term assets (€5.7B) exceed its short term liabilities (€631.3M).

Long Term Liabilities: GLPG's short term assets (€5.7B) exceed its long term liabilities (€2.7B).


Debt to Equity History and Analysis

Debt Level: GLPG is debt free.

Reducing Debt: GLPG had no debt 5 years ago.

Debt Coverage: GLPG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GLPG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: GLPG's debt is not covered by short term assets (assets are -1.5906187525666E+18x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%5.4%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GLPG'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 GLPG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GLPG'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 GLPG's dividend in 3 years as they are not forecast to pay a notable one for the Dutch market.


Next Steps

Management

What is the CEO of Galapagos's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Onno van de Stolpe (60yo)

21yrs

Tenure

€1,480,627

Compensation

Mr. Onno van de Stolpe co-founded Galapagos NV in 1999 and has been Chief Executive Officer and Managing Director since 1999. Mr. van de Stolpe served as the Managing Director Genomics at IntroGene BV. He  ...


CEO Compensation Analysis

Compensation vs Market: Onno's total compensation ($USD1.65M) is below average for companies of similar size in the Dutch market ($USD4.54M).

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


Management Age and Tenure

5.8yrs

Average Tenure

55yo

Average Age

Experienced Management: GLPG's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

Experienced Board: GLPG's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.9%.


Management Team

  • Onno van de Stolpe (60yo)

    Co-Founder

    • Tenure: 21yrs
    • Compensation: €1.48m
  • Andre Hoekema (62yo)

    Chief Business Officer

    • Tenure: 2.3yrs
  • Piet Wigerinck (55yo)

    Chief Scientific Officer

    • Tenure: 8yrs
  • Bart Filius (49yo)

    CFO & COO

    • Tenure: 5.1yrs
  • Elizabeth Goodwin

    Vice President of Investor Relations

    • John Montana

      Managing Director of Argenta

      • Tenure: 6.4yrs
    • Walid Abi-Saab (54yo)

      Chief Medical Officer

      • Tenure: 2.8yrs
    • Chantal Tasset

      Head of Development

      • Ellen Aar

        Head of Development

        • Carmen Vroonen

          Senior Director Communications & Public Affairs


          Board Members

          • Raj Parekh (59yo)

            Non-Executive Chairman

            • Tenure: 16yrs
            • Compensation: €90.00k
          • Onno van de Stolpe (60yo)

            Co-Founder

            • Tenure: 21yrs
            • Compensation: €1.48m
          • Katrine Bosley (51yo)

            Independent Non-Executive Director

            • Tenure: 6.8yrs
            • Compensation: €45.00k
          • Mary Kerr (58yo)

            Independent Non-Executive Director

            • Tenure: 3.5yrs
            • Compensation: €43.75k
          • Howard Rowe (50yo)

            Independent Non-Executive Director

            • Tenure: 9.3yrs
            • Compensation: €52.50k
          • Linda Higgins

            Non-Independent Director

            • Tenure: 0.3yrs
          • Dan O'Day (55yo)

            Non-Independent Director

            • Tenure: 0.3yrs
          • Peter Guenter (57yo)

            Director

            • Tenure: 0.8yrs

          Company Information

          Galapagos NV's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Galapagos NV
          • Ticker: GLPG
          • Exchange: ENXTAM
          • Founded: 1999
          • Industry: Biotechnology
          • Sector: Pharmaceuticals & Biotech
          • Market Cap: €13.774b
          • Shares outstanding: 64.67m
          • Website: https://www.glpg.com

          Number of Employees


          Location

          • Galapagos NV
          • Generaal De Wittelaan L11 A3
          • Mechelen
          • Antwerp
          • 2800
          • Belgium

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          GLPGENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURMay 2005
          GXEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005
          0JXZLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2005
          GLPG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2005
          GLPGABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2005
          GLPGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 2005
          GXEETLX (Eurotlx)YesOrdinary SharesITEURMay 2005
          GLPGNasdaqGS (Nasdaq Global Select)SPON ADR REPR 1 ORD SHSUSUSDMay 2008
          GXEADB (Deutsche Boerse AG)SPON ADR REPR 1 ORD SHSDEEURMay 2008

          Biography

          Galapagos NV, a clinical-stage biotechnology company, discovers, develops, and commercializes various small molecule medicines. The company’s clinical stage programs include filgotinib, which is in Phase III clinical trials for the treatment of rheumatoid arthritis, Crohn’s disease, and ulcerative colitis; Phase II trials for small bowel CD, fistulizing CD, Sjögren’s syndrome, ankylosing spondylitis, psoriatic arthritis, cutaneous lupus erythematosus, lupus membranous nephropathy, and uveitis. Its clinical stage programs also comprise GLPG1690I, an autotaxin inhibitor that is in ISABELA I and II trials for idiopathic pulmonary fibrosis (IPF), and NOVESA Phase II proof of concept trial for systemic sclerosis; and GLPG1205, a GPR84 inhibitor, which is in the PINTA Phase II proof of concept trial for treating IPF. In addition, the company engages in the development of GLPG1972, which is in the ROCCELLA Phase II trial in osteoarthritis patients; MOR106 that is in Phase I and II trials in atopic dermatitis patients; and GLPG3312, a Toledo molecule, which is in Phase I clinical development for various indications. Galapagos NV has collaboration agreement with Servier for GLPG1972; Les Laboratoires Servier for GLPG1972; MorphoSys AG and Novartis Pharma AG for MOR106; AbbVie for the discovery, development, and commercialization of potentiator and corrector molecules for the treatment of cystic fibrosis; and Evotec for fibrosis, as well as a drug discovery research collaboration agreement with HitGen to identify small molecule leads. The company was founded in 1999 and is headquartered in Mechelen, Belgium. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/26 20:58
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          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.