Legend Biotech may be overvalued with poor growth indicators, but the 10 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $65.0 to $87.0 per share, for an average of $72.8. At today's price of $54.75, Legend Biotech is trading -24.79% away from its average target price, suggesting there is an analyst consensus of strong upside potential.
Legend Biotech Corporation, a clinical-stage biopharmaceutical company, through its subsidiaries, engages in the discovery, development, manufacturing, and commercialization of novel cell therapies for oncology and other indications in the United States, China, and internationally. Based in Somerset, NJ, the mid-cap Health Care company has 1,390 full time employees. Legend Biotech has not offered a dividend during the last year.
Legend Biotech does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -1.65. The average P/E ratio for the Health Care sector is 24.45. Furthermore, Legend Biotech is likely overvalued compared to its book value, since its P/B ratio of 12.1 is higher than the sector average of 4.16.
If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its strong cash flows. You can see for yourself in the financial summary table below:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $57,264 | $75,676 | $89,792 | $117,005 |
| Revenue Growth | n/a | 32.15% | 18.65% | 30.31% |
| Gross Margins | n/a | n/a | n/a | 44.1% |
| Gross Margins Growth | n/a | n/a | n/a | n/a |
| Operating Margins | -236.4% | -302.9% | -415.4% | -391.5% |
| Operating Margins Growth | n/a | -28.13% | -37.14% | 5.75% |
| Net Margins | -232.21% | -401.02% | -430.12% | -381.48% |
| Net Margins Growth | n/a | -72.7% | -7.26% | 11.31% |
| Earnings Per Share | -$1.33 | -$2.26 | -$2.86 | -$2.94 |
| EPS Growth | n/a | -69.92% | -26.55% | -2.8% |
| Diluted Shares (MM) | 100 | 118 | 141 | 165 |
| Free Cash Flow (k) | -$122,235 | -$223,005 | -$198,465 | -$222,304 |
| FCF Growth | n/a | -82.44% | 11.0% | -12.01% |
| Capital Expenditures (k) | -$39,170 | -$49,776 | -$47,112 | -$22,275 |
| LT Debt to Equity | nan | nan | 0.26 | 0.35 |
