NasdaqGS:LXRX

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (3.1x) is below the US market (18.5x)

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -11.9% per year for the next 3 years

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet and fair value.


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

38.0%

LXRX

-0.5%

US Biotechs

0.03%

US Market


1 Year Return

-31.5%

LXRX

14.9%

US Biotechs

18.6%

US Market

Return vs Industry: LXRX underperformed the US Biotechs industry which returned 14.9% over the past year.

Return vs Market: LXRX underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

LXRXIndustryMarket
7 Day38.0%-0.5%0.03%
30 Day25.5%9.0%1.7%
90 Day252.9%15.2%5.7%
1 Year-31.5%-31.5%15.9%14.9%21.1%18.6%
3 Year-68.8%-68.8%28.1%24.1%45.6%36.2%
5 Year-18.2%-18.2%6.8%1.9%71.1%52.3%

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?

3.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LXRX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LXRX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LXRX is good value based on its PE Ratio (3.1x) compared to the Biotechs industry average (17.9x).

PE vs Market: LXRX is good value based on its PE Ratio (3.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LXRX is good value based on its PB Ratio (3.1x) compared to the US Biotechs industry average (3.1x).


Next Steps

Future Growth

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

-11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LXRX's earnings are forecast to decline over the next 3 years (-11.9% per year).

Earnings vs Market: LXRX's earnings are forecast to decline over the next 3 years (-11.9% per year).

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

Revenue vs Market: LXRX's revenue is expected to decline over the next 3 years (-7.6% per year).

High Growth Revenue: LXRX's revenue is forecast to decline over the next 3 years (-7.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Lexicon Pharmaceuticals performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

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

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 4.7% 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 (103.3%).


Return on Equity

High ROE: Whilst LXRX's Return on Equity (99.86%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lexicon Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: LXRX's short term assets ($363.6M) exceed its short term liabilities ($44.8M).

Long Term Liabilities: LXRX's short term assets ($363.6M) exceed its long term liabilities ($235.1M).


Debt to Equity History and Analysis

Debt Level: LXRX's debt to equity ratio (148.8%) is considered high.

Reducing Debt: LXRX's debt to equity ratio has increased from 26.9% to 148.8% over the past 5 years.

Debt Coverage: LXRX's debt is well covered by operating cash flow (45.3%).

Interest Coverage: LXRX's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: LXRX's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate LXRX'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 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

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

7.5yrs

Average management tenure


CEO

Lonnel Coats (54yo)

5.4yrs

Tenure

US$3,123,433

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 ($USD3.12M) is above average for companies of similar size in the US market ($USD1.71M).

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


Management Age and Tenure

7.5yrs

Average Tenure

59yo

Average Age

Experienced Management: LXRX's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

12.3yrs

Average Tenure

64yo

Average Age

Experienced Board: LXRX's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

Insider Buying: LXRX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$155,00019 Sep 19
Lonnel Coats
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceUS$3.10
BuyUS$15,11519 Sep 19
Alexander Santini
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares4,500
Max PriceUS$3.52
BuyUS$156,40318 Sep 19
Lonnel Coats
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceUS$3.13
BuyUS$752,35117 Sep 19
Raymond Debbane
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares300,515
Max PriceUS$2.80
BuyUS$302,46817 Sep 19
Christopher Sobecki
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares124,249
Max PriceUS$2.75
BuyUS$54,02920 Aug 19
Lonnel Coats
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceUS$1.40
BuyUS$11,40002 Aug 19
James Tessmer
EntityIndividual
Role
Chief Accounting Officer
Vice President of Finance & Accounting
Shares10,000
Max PriceUS$1.14
BuyUS$28,20002 Aug 19
Samuel Barker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24,000
Max PriceUS$1.18

Ownership Breakdown

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


Management Team

  • Jeffrey Wade (54yo)

    Executive VP of Corporate & Administrative Affairs and CFO

    • Tenure: 9.6yrs
    • Compensation: US$1.41m
  • Robert Lefkowitz (75yo)

    Consultant & Director

    • Tenure: 18.8yrs
    • Compensation: US$96.22k
  • Praveen Tyle (59yo)

    Executive Vice President of Research & Development

    • Tenure: 3.6yrs
    • Compensation: US$1.46m
  • Lonnel Coats (54yo)

    President

    • Tenure: 5.4yrs
    • Compensation: US$3.12m
  • James Tessmer (59yo)

    Vice President of Finance & Accounting

    • Tenure: 12.1yrs
    • Compensation: US$508.34k
  • Pablo Lapuerta (56yo)

    Executive VP & Chief Medical Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.26m
  • Brian Crum

    Vice President

    • Tenure: 0yrs
  • Chas Schultz

    Executive Director of Corporate Communications & Patient Advocacy

    • Tenure: 18.9yrs
  • Alex Santini (60yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 3.1yrs
    • Compensation: US$1.23m
  • Kimberly Lee

    Head of Investor Relations & Corporate Strategy

    • Tenure: 0yrs

Board Members

  • Ray Debbane (64yo)

    Independent Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$80.39k
  • Sam Barker (76yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$69.39k
  • Philippe Amouyal (60yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$63.89k
  • Robert Lefkowitz (75yo)

    Consultant & Director

    • Tenure: 18.8yrs
    • Compensation: US$96.22k
  • Christopher Sobecki (60yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$60.39k
  • Judith Swain (70yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$65.89k
  • Alan Nies (81yo)

    Chairman of Medical Advisory Board & Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$137.05k
  • Frank Palantoni (62yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$69.39k
  • Lonnel Coats (54yo)

    President

    • Tenure: 5.4yrs
    • Compensation: US$3.12m

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$350.697m
  • Shares outstanding: 106.27m
  • Website: https://www.lexpharma.com

Number of Employees


Location

  • Lexicon Pharmaceuticals, Inc.
  • 8800 Technology Forest Place
  • The Woodlands
  • Texas
  • 77381
  • 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 Analysis2019/12/07 23:38
End of Day Share Price2019/12/06 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.