LXRX

Lexicon Pharmaceuticals, Inc.

Fundamental data last updated:August 12, 2026

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company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that completed Phase III clinical trials for the for the treatment of heart failure and type 1 diabetes; and LX9211, which is in Phase II clinical development for the treatment of neuropathic pain. The company has strategic collaboration and license agreements with Bristol-Myers Squibb Company, and Genentech, Inc. Lexicon Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in The Woodlands, Texas.

 


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VALUATION

P/E

-33.90

Market Cap ($M USD)

$981.67M

Forward P/E

-82.87

PEG

-1.40

PRICE TO SALES

14.10

PRICE TO BOOK

4.36

EV / EBITDA

-49.14

5-Year Average P/E

Free Cash Flow Yield

-3.95%

DCF Value

$-10.56

Graham Number

N/A

Price to FCF

-25.30

EV to FCF

-25.80

Earnings Yield

-2.95%

FCF Yield

-3.95%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.07

Next Year EPS Growth Estimate

-$0.03

Next Year Revenue Growth Estimate

$107.82M

Return on Equity (ROE)

-18.64%

FREE CASH FLOW

Operating Margin

-34.79%

Debt-to-Equity

0.58

Piotroski F-Score

4

Altman Z-Score

-0.79

Return on Invested Capital (ROIC)

-9.36%

Current Ratio

18.79

Quick Ratio

18.77

Net Debt to EBITDA

-0.96

Interest Coverage

-4.93

Gross Profit margin

99.07%

FCF PER SHARE

$-0.10

REVENUE PER SHARE

$0.17

Analyze LXRX on TradingView

Gainseekers Quantitative Analysis

Summary

The market’s current valuation of Lexicon Pharmaceuticals seems to be a stark misalignment with its intrinsic value. With a DCF value deeply negative and a Forward P/E of -75, the stock appears to be priced for a bleak future. The Altman Z-score of -1.64 signals significant financial distress, raising red flags about its long-term viability. Despite a negative earnings yield, the company’s market cap suggests investors are still holding out hope for a turnaround. However, the lack of profitability and negative ROIC paint a grim picture of management’s ability to generate returns.

AI Exposure / Tech Reliance

Operating in the biotechnology sector, Lexicon Pharmaceuticals is inherently positioned to leverage AI for drug discovery and development. The industry's rapid adoption of AI-driven analytics could enhance their R&D efficiency. However, the company's current financial struggles may limit its ability to invest in cutting-edge technologies.

The Bull Case

For the optimistic investor, Lexicon's high current ratio of 18.79 suggests a robust liquidity position, providing a cushion against short-term liabilities. The Piotroski F-Score of 4 indicates some fundamental strength, albeit moderate. Despite negative FCF yield, the company's gross profit margin of 99% hints at potential pricing power if operational efficiencies can be improved. This could attract GARP investors looking for a turnaround story with significant upside potential.

The Bear Case

The bear case for Lexicon is compelling, with its Price/Sales ratio of 12.76 and Price/Book of 3.95 indicating a potentially overvalued stock. The negative EV to EBITDA and FCF yield highlight severe cash flow issues, exacerbated by an operating margin of -34.79%. Trading at its 52-week high, the stock appears technically overextended, leaving little room for error. The company's inability to generate positive earnings or cash flow raises serious concerns about its sustainability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$6.00

Institutional Ownership %

1-Year Beta

0.97

Insider Buying % (6 Mo)

Distance to 52-Week High

14.48%

Distance to 52-Week Low

71.95%

EARNINGS SURPRISE %

93.50%

50-DAY SMA

$1.83

200-DAY SMA

$1.46

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.