Legend Biotech shares fell by -2.6% during the day's afternoon session, and are now trading at a price of $34.0. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Legend Biotech's P/B and P/E Ratios Are Higher Than Average:
Legend Biotech Corporation, through its subsidiaries, operates as a biopharmaceutical company that discovers, develops, manufactures, and commercializes novel cell therapies for oncology and other indications in the United States, China, and Europe. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Legend Biotech has a trailing 12 month P/E ratio of -28.8 and a P/B ratio of 6.15.
Legend Biotech has moved -21.1% over the last year compared to 9.5% for the S&P 500 — a difference of -30.6%. Legend Biotech has a 52 week high of $60.87 and a 52 week low of $27.34.
An Excellent Current Ratio but Negative Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $59,980 | $75,000 | $68,826 | $117,005 | $285,143 | $440,719 |
| Net Margins | -169% | -355% | -586% | -381% | -182% | -46% |
| Net Income (k) | -$101,590 | -$266,373 | -$403,582 | -$446,349 | -$518,254 | -$203,310 |
| Earnings Per Share | -$0.51 | -$1.13 | -$1.43 | -$1.4 | -$1.47 | -$0.56 |
| EPS Growth | n/a | -121.57% | -26.55% | 2.1% | -5.0% | 61.9% |
| Free Cash Flow (k) | -$83,065 | -$223,005 | -$198,465 | -$201,281 | -$393,276 | -$61,955 |
| Total Debt (k) | $9,586 | $5,238 | $120,462 | $260,932 | $281,328 | $296,623 |
| Current Ratio | 1.62 | 5.14 | 4.14 | 3.69 | 6.92 | 4.98 |
