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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2351
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$491M
Lonnel Coats
Lexicon Pharmaceuticals, Inc. 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.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$LXRX LEXICON PHARMACEUTICALS, INC. | 48 | 48 | 37 | 70 | - | - | -82.9% | -48.4% | 98.3% | -1436.8% | -1446.7% | 761.1% | 0.0% | 71.0x | $491M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
LEXICON PHARMACEUTICALS, INC. (LXRX) receives a "Reduce" rating with a composite score of 47.8/100. It ranks #2351 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for LXRX.
View All RatingsROIC -140.5% vs WACC 9.3% (spread -149.8%)
GM 98% vs sector 44%, OM -1437% vs sector 3%
Capital turnover 2.07x, R&D intensity 112.4%
Rev growth 761%, 10yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate LEXICON PHARMACEUTICALS, INC. (LXRX) as a Reduce with a composite score of 47.8/100 at a current price of $1.49. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
LEXICON PHARMACEUTICALS, INC. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 47.8/100 places it at rank #2351 in our full universe.
The near-term outlook is constructive, with revenue growing at 761% and momentum in the 70th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
High
Poor
Fair Value
Gross margins of 98% signal strong pricing power.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
LEXICON PHARMACEUTICALS, INC. represents a reduce based on multi-factor quantitative performance.
LEXICON PHARMACEUTICALS, INC. receives a Reduce rating from our analysis, with a composite score of 47.8/100 and 2 out of 5 stars, ranking #2351 out of 7,333 stocks. LXRX's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 48/100, LXRX shows adequate but unremarkable business quality. The company reports a return on equity of -82.9% (sector avg: -1.9%), gross margins of 98.3% (sector avg: 44.1%), net margins of -1446.7% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 37/100, LXRX appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 5.11x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
LEXICON PHARMACEUTICALS, INC.'s investment score of 21/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 761.1% vs. a sector average of 6.7% and a return on assets of -48.4% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
LXRX shows strong momentum characteristics with a score of 70/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 761.1% year-over-year, while a beta of 0.78 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
LXRX's stability score of 32/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 0.78 and a debt-to-equity ratio of 71.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 46/100 for LXRX suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 71.00x), small-cap liquidity risk. With a $491M market cap (small-cap), LEXICON PHARMACEUTICALS, INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
LEXICON PHARMACEUTICALS, INC. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2351 of 7,333 overall (68th percentile). Key comparisons include ROE of -82.9% trailing the -1.9% sector median and operating margins of -1436.8% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While LXRX currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Investment (21) would have the largest impact on the composite score.
ROE 4264% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 123% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 57345% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
U.S. stock futures fell on Monday after three consecutive days of decline. Goldman Sachs has increased its U.S. recession probability from 20% to 35% and warned that the risk of further market correction is still looming.
Three small-cap stocks, Argan, Lightwave Logic, and Lexicon Pharmaceuticals, posted significant gains last week despite broader market uncertainty, with Lexicon surging 58% on a licensing deal with Novo Nordisk.
Lexicon Pharmaceuticals (LXRX) stock rises as chairman Raymond Debbane buys $350K+ shares of the company. Read more here.
LOS ANGELES, February 23, 2026--Pelage Pharmaceuticals, a clinical-stage regenerative medicine biotechnology company, today announced the appointment of Maykin Ho, Ph.D., to its board of directors, and the promotions of Nathan Wheeler to Chief Operating Officer and Lisa Sherman to Vice President, Head of Clinical Operations.
Lexicon Pharmaceuticals just saw its price target nudged higher by $0.20, a move that reflects updated assumptions rather than a wholesale rethink of the story. Analysts describe this change as the result of fine tuning, using it to highlight what they believe could go right or wrong from here. As you read on, you will see how these incremental shifts feed into the broader narrative and how you can track those changes over time. Stay updated as the Fair Value for Lexicon Pharmaceuticals...