Ligand Pharmaceuticals Inc

Health Care
Biotechnology: Pharmaceutical Preparations
www.ligand.com

Earnings Score
Moat Score

Market Cap $2.18B
PE 48
Debt -
Cash $63.62M
EV -
FCF $75.12M

Earnings

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Sales & Net Margins

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Earnings	$45.24M
EBIT	$58.82M
ROE	5%
ROA	6%
FCF	$75.12M
Equity	$841.18M
Growth Stability	-15%
PE	48.11
PEG	-2.75
PB	2.59
P/FCF	28.98
P/S	14.28
Price/Cash	0.03
Net Margins	22%
Op. Margins	39%
Earnings CAGR	-4%
Sales Growth YoY	58%
Sales Growth QoQ	25%
Sales CAGR	5%
FCF CAGR	0%
Equity CAGR	17%
Earnings Stability	0.02
Earnings Growth YoY	-30%

Earnings Growth QoQ	-86%
Earnings CAGR 5Y	-17%
Sales CAGR 5Y	-1%
FCF CAGR 5Y	2%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	-27%
Sales CAGR 3Y	-27%
FCF CAGR 3Y	-23%
Equity CAGR 3Y	-0%
Market Cap	$2.18B
Revenue	$152.42M
Assets	$954.87M
Cash	$63.62M
Shares Outstanding	18.04M
Earnings Score	6%
Moat Score	79%
Working Capital	284.62M
Current Ratio	12.49
Shares Growth 3y	7%
Equity Growth QoQ	9%
Equity Growth YoY	26%

Assets & ROA

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Stockholders Equity & ROE

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Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.

SEC Filings

Direct access to Ligand Pharmaceuticals Inc (LGND) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Ligand Pharmaceuticals Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Ligand Pharmaceuticals Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -4%

Stability 2%

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Ligand Pharmaceuticals Inc Discounted Cash Flow

Fully customizable DCF calculator online for Ligand Pharmaceuticals Inc.

Years

Calculation mode

= $767M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$75M	$75M	$76M	$76M	$76M	$76M	$77M	$77M	$77M	$77M	$78M	$775M
DCF		$69M	$62M	$57M	$52M	$47M	$43M	$39M	$36M	$33M	$30M	$299M
Value	$767M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	354%	-2%	9%	57%	523%	-2%	21%	-17%	40%	22%
ROA	-	7%	11%	18%	56%	2%	6%	5%	8%	6%
ROE	-	-0%	3%	26%	82%	-0%	7%	-6%	7%	5%

Good Net Margins (21.76%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.48	2.46	3.29	-20.04	8.82	4.58	0.64	0	-
Debt over Equity	1.33	0.62	0.56	1.13	0.83	0.62	0.39	0.13	0	-
Growth Stability	-	-	-	100%	100%	-1%	22%	-15%	100%	-15%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-15%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	52%	29%	78%	-52%	55%	49%	-29%	-33%	-1%
Earnings YoY growth	-	-101%	-867%	1K%	339%	-100%	-2K%	-158%	-256%	-17%
Equity YoY growth	-	12%	17%	40%	37%	-8%	16%	-27%	17%	1%
FCF YoY growth	-	47%	49%	111%	-117%	-257%	40%	71%	-62%	2%