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Galapagos (NL:GLPG)
:GLPG
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Galapagos (GLPG) AI Stock Analysis

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NL:GLPG

Galapagos

(LSE:GLPG)

Rating:58Neutral
Price Target:
€29.00
▲(13.64%Upside)
The overall stock score for Galapagos is primarily influenced by strong technical indicators suggesting a bullish market trend, tempered by financial performance concerns due to ongoing losses and cash flow challenges. Valuation remains weak due to negative earnings, typical for growth-phase biotech companies.

Galapagos (GLPG) vs. iShares MSCI Netherlands ETF (EWN)

Galapagos Business Overview & Revenue Model

Company DescriptionGalapagos NV is a biotechnology company headquartered in Belgium, primarily focused on discovering and developing small molecule medicines with novel modes of action. The company operates in the pharmaceutical and biotechnology sectors, targeting diseases with unmet medical needs. Its core products include a range of drug candidates in various stages of clinical development, particularly for inflammatory diseases, fibrosis, and other conditions.
How the Company Makes MoneyGalapagos NV makes money through a combination of strategic partnerships, research and development collaborations, and licensing agreements with larger pharmaceutical companies. These collaborations often involve upfront payments, milestone payments based on development progress, and royalties on sales of successfully developed drugs. Additionally, Galapagos may receive funding from governmental and non-governmental research grants to support its development programs. The company's earnings are significantly influenced by the success of its clinical trials, regulatory approvals, and its ability to bring new products to market.

Galapagos Financial Statement Overview

Summary
Galapagos demonstrates strong gross margins and a robust cash reserve, which are positive indicators of financial health. However, the continued operational losses, negative net income, and cash flow issues significantly weigh down the financial performance score. The substantial cash position provides some stability, but strategic changes are needed to address profitability challenges.
Income Statement
30
Negative
Galapagos has experienced fluctuating revenues with a current TTM (Trailing-Twelve-Months) revenue of $288M, a slight increase from the previous year. However, the company continues to face significant challenges in achieving profitability, as evidenced by negative EBIT and net income margins. The gross profit margin remains strong at around 84%, indicating a high efficiency in managing production costs, but operating losses overshadow these strengths. Revenue growth is inconsistent, and the trend of negative net income poses a risk to financial stability.
Balance Sheet
55
Neutral
The company's balance sheet shows a healthy equity ratio at approximately 68% and a low debt-to-equity ratio, reflecting financial stability and a conservative approach to leverage. However, there is a declining trend in stockholders' equity. Despite this, the cash position remains robust with over $3.2 billion in cash and equivalents, which provides a buffer against operational losses and financial flexibility.
Cash Flow
40
Negative
Galapagos faces challenges in cash flow management with consistent negative operating cash flow and free cash flow, indicative of cash burn issues. The company's free cash flow has seen some improvement, with a reduction in the negative figure over time. However, the operating cash flow to net income ratio is concerning, highlighting inefficiencies in converting income into cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue275.65M239.72M505.28M484.85M478.05M
Gross Profit240.79M203.74M493.20M483.22M-45.61M
EBITDA43.33M44.23M-33.37M-100.93M-294.52M
Net Income74.08M211.70M-217.99M-125.42M-311.00M
Balance Sheet
Total Assets4.14B4.36B4.73B5.19B5.72B
Cash, Cash Equivalents and Short-Term Investments3.12B3.68B4.09B4.70B5.16B
Total Debt11.72M9.60M21.90M26.86M29.44M
Total Liabilities1.24B1.56B2.21B2.55B3.05B
Stockholders Equity2.90B2.80B2.53B2.64B2.67B
Cash Flow
Free Cash Flow-402.14M-425.24M-537.49M-561.71M-518.65M
Operating Cash Flow-320.03M-405.97M-500.54M-503.83M-427.34M
Investing Cash Flow220.60M71.19M-1.25B541.24M757.29M
Financing Cash Flow-4.92M-5.00M-1.49M-3.88M22.04M

Galapagos Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.52
Price Trends
50DMA
25.14
Positive
100DMA
24.15
Positive
200DMA
24.68
Positive
Market Momentum
MACD
0.83
Negative
RSI
76.68
Negative
STOCH
85.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:GLPG, the sentiment is Positive. The current price of 25.52 is above the 20-day moving average (MA) of 25.51, above the 50-day MA of 25.14, and above the 200-day MA of 24.68, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 76.68 is Negative, neither overbought nor oversold. The STOCH value of 85.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:GLPG.

Galapagos Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
£4.85B6.57-62.36%101.97%34.03%6.31%
58
Neutral
€1.87B19.98-6.36%
56
Neutral
€589.91M-6.31%25.41%-31.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:GLPG
Galapagos
25.52
0.38
1.51%
NL:PHARM
Pharming Group
0.87
0.10
12.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025