Ligand Pharma (LGND) AI Stock Analysis

• Market Cap: $3.83B
• Dividend Yield: N/A
• Average Volume (3M): 228.56K
• Price to Earnings (P/E): 95.5
• Beta (1Y): 0.95
• Revenue Growth: 64.83%
• EPS Growth: -9.12%
• Country: US
• Employees: 68
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 3.09
• Shares Outstanding: 19,681,720
• 10 Day Avg. Volume: 232,099
• 30 Day Avg. Volume: 228,563
• PEG Ratio: 4.53
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 11.73
• P/FCF Ratio: 20.58
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 13.70
• Enterprise Value/Gross Profit: 15.94
• Enterprise Value/Ebitda: 34.44
• 1Y Price Target: $243.50
• Price Target Upside: 22.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $194.00 ▼(-2.22% Downside)

Ligand Pharma's overall stock score reflects a mix of strong earnings call performance and stable financial structure, offset by bearish technical indicators and high valuation concerns. The company's ability to manage cash flow and improve operational efficiency will be crucial for future performance.

Positive Factors

Revenue Growth

Ligand's strong revenue growth indicates robust demand for its technologies and successful partnerships, supporting long-term financial health.

Strategic Partnerships

Successful partnerships with major pharmaceutical companies enhance Ligand's market position and provide stable revenue streams through royalties.

Financial Stability

Extending the credit agreement maturity date ensures liquidity and financial stability, allowing Ligand to focus on strategic growth initiatives.

Negative Factors

Profitability Margins

Declining gross profit margins suggest cost management issues, which could impact long-term profitability if not addressed.

Cash Flow Challenges

A decline in free cash flow growth indicates potential liquidity constraints, which may hinder future investments and operational flexibility.

Increased Operating Expenses

Rising operating expenses can erode profitability and may require strategic adjustments to maintain financial performance.

Ligand Pharma Business Overview & Revenue Model

Company Description

Ligand Pharmaceuticals Incorporated (LGND) is a biopharmaceutical company focused on developing and commercializing technologies that enable the discovery and development of novel medicines. The company operates primarily in the pharmaceutical and biotechnology sectors, offering a variety of products and services, including specialized drug delivery platforms, antibody-drug conjugates, and various proprietary technologies that enhance drug development processes. Ligand collaborates with numerous pharmaceutical companies to leverage its innovative technologies in drug discovery and development.

How the Company Makes Money

Ligand Pharmaceuticals generates revenue through a diversified business model that includes licensing agreements, milestone payments, and royalties from its partnered programs. The company partners with large pharmaceutical firms that utilize Ligand's technologies in their drug development processes, receiving upfront payments and contingent milestone payments upon the achievement of specific regulatory or developmental milestones. Additionally, Ligand earns royalties on the sales of approved drugs that incorporate its technologies. Significant partnerships with major pharmaceutical companies bolster its revenue streams and provide a steady income reflecting the success of partnered drug candidates in the market.

Ligand Pharma Financial Statement Overview

Summary

Ligand Pharma's financial performance is mixed. Strong revenue growth is offset by inconsistent profitability margins and cash flow challenges. The balance sheet is stable with moderate leverage, but operational efficiency and cash flow management need improvement.

Income Statement

Ligand Pharma's income statement shows a mixed performance. The TTM data indicates a strong revenue growth rate of 33.93%, which is a positive sign. However, the gross profit margin has significantly decreased to 19.20% from previous years, indicating potential cost management issues. The net profit margin improved to 14.26% in the TTM, showing profitability recovery. The EBIT margin is negative, suggesting operational challenges, while the EBITDA margin is relatively low at 5.63%.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.47 in the TTM, indicating moderate leverage. The return on equity is low at 4.21%, suggesting limited efficiency in generating returns from equity. The equity ratio is not explicitly calculated, but the company's equity position appears strong relative to its assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 22.87% in the TTM, which is concerning. The operating cash flow to net income ratio is healthy at 1.81, indicating good cash generation relative to net income. However, the free cash flow to net income ratio of 0.72 suggests that a significant portion of net income is not translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.23M	167.13M	131.31M	196.25M	241.54M	163.56M
Gross Profit	215.82M	156.06M	96.27M	143.42M	179.37M	133.14M
EBITDA	99.90M	40.79M	100.84M	81.20M	142.77M	56.67M
Net Income	48.58M	-4.03M	52.15M	-33.36M	57.14M	-2.98M
Balance Sheet
Total Assets	1.48B	941.77M	787.22M	762.67M	1.30B	1.36B
Cash, Cash Equivalents and Short-Term Investments	664.52M	256.17M	170.31M	211.87M	341.11M	411.19M
Total Debt	451.00M	7.11M	6.17M	87.75M	324.39M	456.41M
Total Liabilities	526.60M	111.33M	86.30M	165.18M	476.43M	652.76M
Stockholders Equity	950.17M	830.44M	700.91M	597.49M	821.16M	709.52M
Cash Flow
Free Cash Flow	30.76M	77.41M	-4.27M	119.93M	70.04M	50.13M
Operating Cash Flow	31.91M	97.05M	49.58M	137.85M	78.80M	54.59M
Investing Cash Flow	-378.82M	-143.66M	-11.68M	163.62M	30.52M	231.65M
Financing Cash Flow	20.46M	97.14M	-59.95M	-275.99M	-137.76M	-310.55M

Ligand Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 198.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGND, the sentiment is Positive. The current price of 198.41 is above the 20-day moving average (MA) of 194.11, above the 50-day MA of 192.87, and above the 200-day MA of 144.17, indicating a bullish trend. The MACD of -0.65 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 87.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGND.

Ligand Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRNX	61 Neutral	$4.53B	-9.96	-44.42%	―	―	-21.96%
LGND	60 Neutral	$3.83B	95.50	5.42%	―	64.83%	-9.12%
KYMR	56 Neutral	$6.48B	-22.14	-32.09%	―	-50.05%	-54.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APLS	50 Neutral	$3.19B	82.45	14.10%	―	42.11%	―
SRRK	50 Neutral	$4.49B	-13.20	-218.04%	―	―	-31.71%
MLTX	41 Neutral	$995.66M	-3.98	-54.17%	―	―	-157.74%

Ligand Pharma Corporate Events

Ligand Pharma Amends Credit Agreement for Stability

On September 12, 2025, Ligand Pharmaceuticals amended its Credit Agreement to extend the maturity date to September 12, 2028, and adjusted the minimum consolidated EBITDA covenant. This amendment is expected to impact the company’s financial operations by ensuring liquidity and stability, which may influence its market positioning and reassure stakeholders about its financial health.