A Holistic Look At Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)

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Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of LGND, it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Ligand Pharmaceuticals here.

Outstanding track record with adequate balance sheet

LGND delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 71%, which is what investors like to see! LGND’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that LGND manages its cash and cost levels well, which is a key determinant of the company’s health. LGND appears to have made good use of debt, producing operating cash levels of 0.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGM:LGND Income Statement, May 7th 2019
NasdaqGM:LGND Income Statement, May 7th 2019

Next Steps:

For Ligand Pharmaceuticals, there are three essential factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for LGND’s future growth? Take a look at our free research report of analyst consensus for LGND’s outlook.
  2. Valuation: What is LGND worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LGND is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LGND? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.