Galapagos (GLPG) AI Stock Analysis

• Market Cap: €1.87B
• Dividend Yield: N/A
• Average Volume (3M): 102.75K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 704
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -1.59
• Shares Outstanding: 65,897,070
• 10 Day Avg. Volume: 124,907
• 30 Day Avg. Volume: 102,753
• PEG Ratio: 0.03
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.56
• 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: €26.13
• Price Target Upside: 2.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• 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 Business Overview & Revenue Model

Company Description

Galapagos 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 Money

Galapagos 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.65M	239.72M	505.28M	484.85M	478.05M
Gross Profit	240.79M	203.74M	493.20M	483.22M	-45.61M
EBITDA	43.33M	44.23M	-33.37M	-100.93M	-294.52M
Net Income	74.08M	211.70M	-217.99M	-125.42M	-311.00M
Balance Sheet
Total Assets	4.14B	4.36B	4.73B	5.19B	5.72B
Cash, Cash Equivalents and Short-Term Investments	3.12B	3.68B	4.09B	4.70B	5.16B
Total Debt	11.72M	9.60M	21.90M	26.86M	29.44M
Total Liabilities	1.24B	1.56B	2.21B	2.55B	3.05B
Stockholders Equity	2.90B	2.80B	2.53B	2.64B	2.67B
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 Flow	220.60M	71.19M	-1.25B	541.24M	757.29M
Financing Cash Flow	-4.92M	-5.00M	-1.49M	-3.88M	22.04M

Galapagos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	£4.85B	6.57	-62.36%	101.97%	34.03%	6.31%
GLPG	58 Neutral	€1.87B	19.98	-6.36%	―	―	―
PHARM	56 Neutral	€589.91M	―	-6.31%	―	25.41%	-31.21%