Galapagos (GLPG) AI Stock Analysis

• Market Cap: €1.97B
• Dividend Yield: N/A
• Average Volume (3M): 73.61K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.85
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 704
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.58
• Shares Outstanding: 65,897,070
• 10 Day Avg. Volume: 83,013
• 30 Day Avg. Volume: 73,610
• 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: €25.38
• Price Target Upside: -16.51% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: €28.00 ▼(-7.89% Downside)

Galapagos' overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis provides a neutral outlook, while valuation is weak due to a negative P/E ratio. The absence of earnings call data and corporate events limits further insights.

Galapagos Business Overview & Revenue Model

Company Description

Galapagos NV, an integrated biopharmaceutical company, engages in the discovery, development, and commercialization of various medicines for high unmet medical need. Its pipeline products include filgotinib, a JAK1 inhibitor that is in various phases of clinical trials for the treatment of rheumatoid arthritis, Crohn's disease, ulcerative colitis, small bowel CD, fistulizing CD, ankylosing spondylitis, psoriatic arthritis, and uveitis. The company's pipeline products also comprise GLPG1972 that has completed Phase 2b trial for treating osteoarthritis; Toledo molecules, including GLPG3970, GLPG4399, and GLPG4876 for inflammation; and GLPG4716 and Ziritaxestat to treat idiopathic pulmonary fibrosis. In addition, its other pipeline products include GLPG2737, a cystic fibrosis transmembrane conductance regulator that is in Phase 2 clinical trials to treat patients with autosomal dominant polycystic kidney disease; and GLPG0555, a JAK1 inhibitor, which is in Phase 1b for treatment of patients with osteoarthritis. The company has collaboration agreements with Gilead Sciences, Inc.; AbbVie S.à r.l.; and Novartis Pharma AG. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

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 shows strong gross margins and a robust cash reserve, but faces significant challenges with profitability and cash flow, as indicated by ongoing operational losses and a negative income trend.

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	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	44.23M	-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: Positive
• Last Price: 30.40
• 50DMA: Positive
• 100DMA: Positive
• 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 30.4 is above the 20-day moving average (MA) of 27.90, above the 50-day MA of 27.82, and above the 200-day MA of 25.11, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 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	65 Neutral	€894.12M	-119.72	-3.42%	―	21.62%	38.07%
GLPG	51 Neutral	€1.97B	19.98	-10.39%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%