NasdaqGS:LXRX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products. More Details


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

LXRX

-3.4%

US Biotechs

-2.4%

US Market


1 Year Return

-55.5%

LXRX

35.9%

US Biotechs

18.2%

US Market

Return vs Industry: LXRX underperformed the US Biotechs industry which returned 40.2% over the past year.

Return vs Market: LXRX underperformed the US Market which returned 19.9% over the past year.


Shareholder returns

LXRXIndustryMarket
7 Day-1.3%-3.4%-2.4%
30 Day-9.3%0.7%4.2%
90 Day-29.2%-4.7%6.3%
1 Year-55.5%-55.5%38.3%35.9%20.9%18.2%
3 Year-86.5%-86.5%18.5%12.5%41.2%31.8%
5 Year-86.3%-86.3%17.2%8.9%84.8%63.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LXRX ($1.47) is trading below our estimate of fair value ($47.08)

Significantly Below Fair Value: LXRX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LXRX is good value based on its PE Ratio (4x) compared to the US Biotechs industry average (27.2x).

PE vs Market: LXRX is good value based on its PE Ratio (4x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: LXRX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LXRX has negative assets, so we can't compare its PB Ratio to the US Biotechs industry average.


Next Steps

Future Growth

How is Lexicon Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LXRX's forecast earnings growth (5.5% per year) is above the savings rate (2.2%).

Earnings vs Market: LXRX's earnings (5.5% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: LXRX's earnings are forecast to grow, but not significantly.

Revenue vs Market: LXRX's revenue is expected to decline over the next 3 years (-28.1% per year).

High Growth Revenue: LXRX's revenue is forecast to decline over the next 3 years (-28.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LXRX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Lexicon Pharmaceuticals performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LXRX has a large one-off loss of $30.2M impacting its June 30 2020 financial results.

Growing Profit Margin: LXRX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LXRX has become profitable over the past 5 years, growing earnings by 24.8% per year.

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

Earnings vs Industry: LXRX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (-3.2%).


Return on Equity

High ROE: LXRX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Lexicon Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: LXRX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LXRX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LXRX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LXRX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: LXRX's debt is well covered by operating cash flow (39.9%).

Interest Coverage: LXRX's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Next Steps

Management

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

11.7yrs

Average management tenure


CEO

Lonnel Coats (55 yo)

6.25yrs

Tenure

US$3,870,291

Compensation

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 Ei ...


CEO Compensation Analysis

Compensation vs Market: Lonnel's total compensation ($USD3.87M) is above average for companies of similar size in the US market ($USD1.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lonnel Coats
President6.25yrsUS$3.87m0.28%
$ 439.3k
Jeffrey Wade
Executive VP of Corporate & Administrative Affairs and CFO10.42yrsUS$1.61m0.11%
$ 169.8k
Praveen Tyle
Executive Vice President of Research & Development4.42yrsUS$1.68m0.065%
$ 101.9k
Robert Lefkowitz
Consultant & Independent Director19.67yrsUS$88.76k0.015%
$ 24.1k
James Tessmer
Vice President of Finance & Accounting12.92yrsUS$508.34k0.061%
$ 95.7k
Kimberly Lee
Head of Investor Relations & Corporate Strategyno datano datano data
Brian Crum
VP, General Counsel & Secretary10.42yrsno data0.046%
$ 73.1k
Chas Schultz
Executive Director of Corporate Communications & Patient Advocacy19.75yrsno datano data
Alan Main
Executive Vice President of Commercial Supply Operations19.25yrsno data0.098%
$ 153.8k

11.7yrs

Average Tenure

60yo

Average Age

Experienced Management: LXRX's management team is seasoned and experienced (11.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lonnel Coats
President6.25yrsUS$3.87m0.28%
$ 439.3k
Robert Lefkowitz
Consultant & Independent Director19.67yrsUS$88.76k0.015%
$ 24.1k
Raymond Debbane
Independent Chairman of the Board8.67yrsUS$118.18k0.30%
$ 465.8k
Samuel Barker
Independent Director20.58yrsUS$107.18k0.052%
$ 81.8k
Philippe Amouyal
Independent Director13.17yrsUS$90.96k0.015%
$ 24.1k
Christopher Sobecki
Independent Director13.17yrsUS$84.55k0.13%
$ 206.9k
Judith Swain
Independent Director13.08yrsUS$96.87k0.015%
$ 24.1k
Alan Nies
Chairman of Medical Advisory Board & Independent Director17.58yrsUS$84.55k0.016%
$ 25.1k
Frank Palantoni
Independent Director15.92yrsUS$105.98k0.015%
$ 24.1k

13.2yrs

Average Tenure

65yo

Average Age

Experienced Board: LXRX's board of directors are seasoned and experienced ( 13.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Lexicon Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lexicon Pharmaceuticals, Inc.
  • Ticker: LXRX
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$157.446m
  • Shares outstanding: 107.11m
  • Website: https://www.lexpharma.com

Number of Employees


Location

  • Lexicon Pharmaceuticals, Inc.
  • 8800 Technology Forest Place
  • The Woodlands
  • Texas
  • 77381-1160
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LXRXNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 2000
LX31DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2000
LX31MUN (Boerse Muenchen)YesCommon SharesDEEURApr 2000

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 06:03
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
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.