Ligand Pharmaceuticals Incorporated (LGND) AI Stock Analysis

Ligand Pharmaceuticals Incorporated is a biopharmaceutical company focused on developing and acquiring innovative technologies that help pharmaceutical partners discover and develop medicines. The company's commercial portfolio includes Kyprolis and Evomela for multiple myeloma, Veklury for COVID-19, Teriparatide for osteoporosis, Vaxneuvance for Streptococcus pneumoniae, and Pneumosil for pediatric pneumococcal pneumonia. It also offers therapies such as Rylaze, Nexterone, and Zulresso, which utilize its proprietary Captisol technology. In addition to supplying Captisol materials, Ligand provides Noxafil-IV, Duavee, and Aziyo products, while collaborating globally on treatments for cancer, seizure disorders, cardiovascular diseases, and other conditions.

Between FY2020 and FY2025, Ligand delivered a 5-year revenue compound annual growth rate of 10.4%. Annual revenue fluctuated over this period, declining 18.8% in FY2022 to $196.2M and 33.1% in FY2023 to $131.3M, before rising 27.3% to $167.1M in FY2024 and 60.4% to $268.1M in FY2025. Gross margin reached 97.5% in FY2025, with an operating margin of 17.6% and net income of $124.5M. For the trailing twelve months, revenue reached $290.5M with an operating margin of 13.5% and a profit margin of 67.9%. In the latest quarter ended June 30, 2026, quarterly revenue grew 33.7% year-over-year, while quarterly earnings grew 825.0%.

As of June 30, 2026, Ligand held $1.36B in cash and short-term investments against total debt of $1.13B, leaving net cash of $226.3M. The company reported a current ratio of 31.18 and a debt-to-equity ratio of 1.17, with shareholders' equity at $967.5M and total assets of $2.19B. In FY2025, Ligand generated $49.4M in operating cash flow and $48.9M in free cash flow. Capital expenditures were $452,000, while share buybacks totaled $15.0M for the year.

At a last close of $295.54, Ligand trades at a trailing price-to-earnings ratio of 31.1x and a forward ratio of 24.8x, both above the median of its US-listed Healthcare peers of 24.6x and 17.3x, respectively. Its enterprise value to EBITDA ratio of 20.6x and price-to-sales ratio of 20.3x also sit above peer medians of 12.0x and 4.1x. Over the past year, the stock returned 63.5%, compared to 16.8% for the S&P 500 (SPY). Over five years, Ligand returned 263.7% versus 83.0% for the index.

Wall Street sentiment is positive, with 8 Strong Buy ratings, 3 Buy ratings, and zero Hold, Sell, or Strong Sell ratings. The mean price target is $344.25, representing 16.5% upside above the last close of $295.54. For the fiscal year ending December 31, 2026, analysts estimate EPS of $9.31 on revenue of $289.6M. For next fiscal year, estimates project EPS of $11.95 and revenue of $381.5M. Ligand beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Ligand Pharmaceuticals Incorporated (LGND). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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