Ligand Pharmaceuticals Incorporated (LGND) — Stock Score Summary

Ligand Pharmaceuticals Incorporated (LGND) has a MoatMap StockRank of 83/100 based on Quality (69/100), Value (27/100), and Momentum (73/100) factor scores. The current signal is STRONG BUY. Ligand operates an exceptional, asset-light royalty model centered on its Captisol technology and partner programs. By acting as a high-margin gatekeeper for drug formulations, it captures the upside of biotech innovation and manufacturing scale without the heavy capital expenditure or clinical trial risk of traditional drug developers, aligning perfectly with our Terry Smith and Buffett lenses.

Ligand Pharmaceuticals Incorporated operates a unique royalty-based business model, focusing on developing and licensing proprietary drug discovery and development platforms to pharmaceutical partners. Its primary competitive moat is built around its patented Captisol® technology, which significantly enhances drug solubility and stability, making it a crucial component in numerous approved and pipeline drug products. This intellectual property-centric approach generates revenue through royalties on partners' sales rather than costly direct drug development.

Key Financial Metrics

Price$243.28
Market Cap$4.7B
P/E (TTM)30.80
P/E (Forward)20.85
Price/Book4.74
Return on Equity17.1%
Return on Invested Capital10.7%
Debt/Equity45.32
Gross Margin83.2%
Operating Margin33.6%
Revenue Growth14.1%
Free Cash Flow$142M

Ligand Pharmaceuticals Incorporated operates in the Biotechnology industry, part of the Healthcare sector (United States).

Frequently Asked Questions

What is Ligand Pharmaceuticals Incorporated’s (LGND) StockRank?
MoatMap’s StockRank for Ligand Pharmaceuticals Incorporated (LGND) is 83/100, with a Strong Buy signal. It is a composite of Quality (69), Value (27), and Momentum (73) factor ranks across MoatMap’s 19,000+ stock universe.
Does Ligand Pharmaceuticals Incorporated have an economic moat?
Ligand Pharmaceuticals Incorporated (LGND) has a Quality factor score of 69/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Ligand Pharmaceuticals Incorporated a buy, hold, or sell?
MoatMap’s current signal for Ligand Pharmaceuticals Incorporated (LGND) is Strong Buy, based on a StockRank of 83/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Ligand Pharmaceuticals Incorporated in?
Ligand Pharmaceuticals Incorporated (LGND) operates in the Healthcare sector, specifically the Biotechnology industry (United States).
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