Galapagos (GLPG) AI Stock Analysis

• Market Cap: €1.72B
• Dividend Yield: N/A
• Average Volume (3M): 132.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 704
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.07
• Shares Outstanding: 65,897,070
• 10 Day Avg. Volume: 76,560
• 30 Day Avg. Volume: 132,014
• PEG Ratio: -0.36
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 6.34
• P/FCF Ratio: -4.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €23.50
• Price Target Upside: -20.66% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €27.00 ▼(-8.85% Downside)

Galapagos' overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio. These factors collectively result in a lower score.

Galapagos Business Overview & Revenue Model

Company Description

Galapagos NV (GLPG) is a biotechnology company based in Belgium, specializing in the discovery and development of innovative medicines for patients with severe diseases. The company primarily operates in the fields of inflammation, oncology, and fibrosis, focusing on the development of small molecule therapies and biologics. Galapagos’ core products include its proprietary drug candidates, which are designed to address unmet medical needs across various therapeutic areas, as well as collaborations with pharmaceutical companies to enhance its research and development capabilities.

How the Company Makes Money

Galapagos generates revenue through a combination of product sales, milestone payments, and research collaborations. The company's primary revenue stream comes from its partnership agreements with larger pharmaceutical companies, which involve co-development and commercialization of its drug candidates. These partnerships often include upfront payments, milestone payments tied to the achievement of specific development objectives, and royalties on future product sales. Additionally, Galapagos may generate revenue from the sale of its own approved therapies, once they reach the market. The company is also focused on expanding its pipeline of drug candidates through ongoing research and development investments, which can lead to further strategic collaborations and revenue opportunities.

Galapagos Financial Statement Overview

Summary

Galapagos faces significant profitability and cash flow challenges, with negative net profit and EBIT margins, and negative operating cash flow. However, it maintains a strong gross profit margin and a solid equity base with low leverage, indicating efficient cost management and financial stability.

Income Statement

Galapagos has experienced a decline in revenue growth, with a negative growth rate of -4.37% in the TTM period. The company is facing significant profitability challenges, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains strong at 87.59%, suggesting efficient cost management at the production level.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.0032, indicating minimal leverage. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

Galapagos has a negative operating cash flow, indicating challenges in generating cash from operations. The free cash flow to net income ratio is positive, suggesting that the company is managing its cash flow relative to net income effectively. However, the overall cash flow position remains weak due to negative free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.61M	275.65M	239.72M	505.28M	484.85M	478.05M
Gross Profit	241.42M	240.79M	203.74M	493.20M	483.22M	-45.61M
EBITDA	-289.17M	43.33M	43.38M	-33.37M	-100.93M	-294.52M
Net Income	-284.27M	74.08M	211.70M	-217.99M	-125.42M	-311.00M
Balance Sheet
Total Assets	3.82B	4.14B	4.36B	4.73B	5.19B	5.72B
Cash, Cash Equivalents and Short-Term Investments	3.09B	3.12B	3.68B	4.09B	4.70B	5.16B
Total Debt	8.44M	11.72M	9.60M	21.90M	26.86M	29.44M
Total Liabilities	1.17B	1.24B	1.56B	2.21B	2.55B	3.05B
Stockholders Equity	2.64B	2.90B	2.80B	2.53B	2.64B	2.67B
Cash Flow
Free Cash Flow	-297.96M	-402.14M	-425.24M	-537.49M	-561.71M	-518.65M
Operating Cash Flow	-278.55M	-320.03M	-405.97M	-500.54M	-503.83M	-427.34M
Investing Cash Flow	284.37M	220.60M	71.19M	-1.25B	541.24M	757.29M
Financing Cash Flow	-4.30M	-4.92M	-5.00M	-1.49M	-3.88M	22.04M

Galapagos Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:GLPG, the sentiment is Negative. The current price of 29.62 is above the 20-day moving average (MA) of 27.41, above the 50-day MA of 28.27, and above the 200-day MA of 25.75, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 64.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:GLPG.

Galapagos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHARM	67 Neutral	$781.75M	-104.68	0.44%	―	24.19%	99.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	46 Neutral	€1.72B	―	-16.72%	―	―	―