Galapagos (GLPG) AI Stock Analysis

• Market Cap: €1.78B
• Dividend Yield: N/A
• Average Volume (3M): 132.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• 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: 48 Neutral
• Price Target: €27.00 ▼(-8.85% Downside)

Galapagos' overall stock score is primarily impacted by its financial performance, which is hindered by profitability and cash flow challenges despite a strong gross profit margin. Technical analysis indicates a neutral trend with bearish momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management at the production level, which can support profitability as the company scales its operations.

Low Leverage

Minimal leverage provides Galapagos with financial flexibility and reduces risk, allowing it to invest in growth opportunities without significant debt burden.

Strategic Shift

Focusing resources on more promising areas could enhance long-term growth prospects and improve operational efficiency, aligning with strategic priorities.

Negative Factors

Negative Cash Flow

Negative operating cash flow suggests challenges in generating cash from core operations, which can constrain financial flexibility and investment capacity.

Declining Revenue Growth

Declining revenue growth can indicate market challenges or competitive pressures, potentially impacting the company's ability to expand and capture market share.

Profitability Challenges

Ongoing profitability issues may hinder Galapagos' ability to reinvest in R&D and other growth initiatives, affecting long-term competitiveness and sustainability.

Galapagos Business Overview & Revenue Model

Company Description

Galapagos NV (GLPG) is a biotechnology company focused on the discovery and development of innovative medicines for patients with unmet medical needs. The company operates primarily in the biopharmaceutical sector, with a strong emphasis on drug discovery and development in areas such as inflammation, fibrosis, and other diseases. Galapagos is known for its proprietary platform, which integrates genetics, biology, and drug discovery to develop novel therapies, including its lead product, filgotinib, which targets inflammatory diseases.

How the Company Makes Money

Galapagos generates revenue primarily through the commercialization of its pharmaceutical products, particularly from partnerships and collaborations with larger pharmaceutical companies. The company's revenue model includes milestone payments, royalties from product sales, and upfront payments from strategic collaborations. Significant partnerships, such as the collaboration with Gilead Sciences for the development and commercialization of filgotinib, contribute substantially to its earnings through shared profits and co-development agreements. Additionally, Galapagos may receive funding from grants or research initiatives aimed at advancing its drug development pipeline.

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	286.92M	275.65M	239.72M	505.28M	484.85M	478.05M
Gross Profit	519.93M	240.79M	203.74M	493.20M	483.22M	-45.61M
EBITDA	-430.23M	43.33M	43.38M	-33.37M	-100.93M	-294.52M
Net Income	-435.95M	74.08M	211.70M	-217.99M	-125.42M	-311.00M
Balance Sheet
Total Assets	4.13B	4.14B	4.36B	4.73B	5.19B	5.72B
Cash, Cash Equivalents and Short-Term Investments	3.58B	3.12B	3.68B	4.09B	4.70B	5.16B
Total Debt	8.81M	11.72M	9.60M	21.90M	26.86M	29.44M
Total Liabilities	1.25B	1.24B	1.56B	2.21B	2.55B	3.05B
Stockholders Equity	2.88B	2.90B	2.80B	2.53B	2.64B	2.67B
Cash Flow
Free Cash Flow	-287.32M	-402.14M	-425.24M	-537.49M	-561.71M	-518.65M
Operating Cash Flow	-269.36M	-320.03M	-405.97M	-500.54M	-503.83M	-427.34M
Investing Cash Flow	284.55M	220.60M	71.19M	-1.25B	541.24M	757.29M
Financing Cash Flow	-4.47M	-4.92M	-5.00M	-1.49M	-3.88M	22.04M

Galapagos Technical Analysis

• Technical Analysis Sentiment: Positive
• 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 Positive. The current price of 29.62 is above the 20-day moving average (MA) of 26.99, above the 50-day MA of 27.93, and above the 200-day MA of 25.96, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€966.06M	-7,050.00	0.44%	―	24.19%	99.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	48 Neutral	€1.78B	-4.09	-16.72%	―	―	―