Ligand Pharmaceuticals Inc (LGND) stock analysis
Close on Nov 12, 2026Market cap $6.33BP/E 138.1Yield –
StockData Score
Prices as of Nov 12, 2026How the score works
Weak6 of 30 checks passed
Ligand Pharmaceuticals passes 6 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Revenue growing 10%+ a year
Revenue grew 11.0% a year over the last three fiscal years.
Low bankruptcy risk
The Altman Z-score is 3.53; above 3 is the safe zone and below 1.8 the distress zone.
Return on equity above the industry
Ligand Pharmaceuticals's return on equity of 5.4% is above the Drugs median of -58.0%.
Net margin above its 5-year average
Net margin was 20.3% over the last twelve months, against a 5-year average of 18.1%.
What to watch
Margin of safety under 20%
The price is 469% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $316.27 is above our fair value estimate of $55.55.
Return on equity under 15%
Return on equity was 5.4% over the last twelve months and averaged 4.7% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 2.6%, below the 10% that usually covers the cost of capital.
Valuation0/6
P/E above its 5-year median
Ligand Pharmaceuticals's P/E of 138.1 is above its own 5-year median of 40.6.
P/E above the industry
Ligand Pharmaceuticals's P/E of 138.1 is above the Drugs median of 25.0.
EV/EBITDA above its 5-year median
Ligand Pharmaceuticals's EV/EBITDA of 115.8 is above its 5-year median of 25.2.
P/B above the industry
Ligand Pharmaceuticals's price-to-book of 6.58 is above the Drugs median of 2.20.
Trading above fair value
The share price of $316.27 is above our fair value estimate of $55.55.
Margin of safety under 20%
The price is 469% above fair value, so there is no margin of safety.
Growth1/6
Revenue growing 10%+ a year
Revenue grew 11.0% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 1.0% over the last twelve months; the Drugs median is 7.6%.
Guidance lowered
Ligand Pharmaceuticals lowered its 2026 Contract revenue outlook on Oct 29, 2026.
Gross margin trend
This company does not report gross profit.
Past performance3/6
Return on equity under 15%
Return on equity was 5.4% over the last twelve months and averaged 4.7% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 2.6%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Ligand Pharmaceuticals's return on equity of 5.4% is above the Drugs median of -58.0%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 20.3% over the last twelve months, against a 5-year average of 18.1%.
Net margin above the industry
Ligand Pharmaceuticals's net margin of 20.3% is above the Drugs median of -53.5%.
Financial health2/6
High debt
Debt is 117% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 8.1% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense 3.1 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.22 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.53; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Ligand Pharmaceuticals has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$55.55
The share price is 469% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 32.8× | 40.6× | 25.0× | $75.13 | 40% |
| EV/EBITDA | 21.1× | 25.2× | 17.0× | $29.80 | 35% |
| P/B | 2.3× | 2.3× | 2.2× | $109.26 | 10% |
| Earnings power | 11.5% cost of equity | – | – | $27.61 | 15% |
| Fair value | $55.55 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 40.6
- Drugs median 25.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $67.35M
- Value traded per 1% price move
- $38.97M
Downside
Low risk
- Typical loss in a bad month
- 9.7%
- Volatility (annualized)
- 36%
- Sharpe ratio, 1 year
- 1.29
- Beta to the S&P 500 (5Y)
- 1.30
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +60.4% | +11.0% | +10.4% | +14.1% | |
| Operating income | – | +138.1% | +1.8% | +4.1% | |
| Net income | – | – | – | -5.9% | |
| EPS, diluted | – | – | – | -5.5% | |
| Free cash flow | -48.6% | -25.8% | -0.5% | +1.6% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -0.6% | -0.4% | 13.5% | |
| Return on assets | -0.3% | -0.2% | 9.9% | |
| Current ratio | 0.72 | 5.00 | 22.23 | |
| Interest coverage | 3.4× | 1.4× | 8.7× | |
| Inventory turnover | 3.1× | – | – | |
| Capex to revenue | 1.7% | 2.7% | 0.2% | |
| Diluted shares | 21M | 17M | 20M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Ligand Pharmaceuticals generated $412.63M from operations and spent $47.48M on capital expenditure, dividends and share buybacks. 68% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 46.4% | 0.21× | 1.35× | 13.5% |
| FY2024 | -2.4% | 0.19× | 1.13× | -0.5% |
| FY2023 | 39.7% | 0.17× | 1.19× | 8.0% |
| FY2022 | -17.0% | 0.19× | 1.45× | -4.7% |
| FY2021 | 23.7% | 0.18× | 1.74× | 7.5% |
| FY2020 | -1.8% | 0.11× | 1.93× | -0.4% |
| FY2019 | 523.2% | 0.09× | 2.07× | 94.8% |
| FY2018 | 57.0% | 0.26× | 2.01× | 29.8% |
| FY2017 | 8.9% | 0.22× | 1.72× | 3.4% |
| FY2016 | -1.5% | 0.20× | 1.91× | -0.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$124.45M
- Cash generatingOperating cash flow above zero$49.36M
- Return on assets improvedROA up on the prior year-0.5% → 13.2%
- Earnings backed by cashOperating cash flow above net income$49.36M vs $124.45M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose8.93 → 22.23
- No dilutionShare count did not rise18M → 20M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.21 → 0.28
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