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LEGN, Legend Biotech Corporation

Pharmaceuticals consumer brand Unprofitable

A pharmaceutical business, where patents grant a temporary monopoly the pipeline must keep refilling.

Latest annual: FY2025 20-F · 1 ADS = 2 ordinary shares

LEGN · Legend Biotech Corporation

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.0B

+64.0% YoY · 69% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.0B 5-yr avg $425M

Gross margin 61% 5-yr avg 55%

Operating margin −13.3% 5-yr avg −242.0%

ROIC −93% 5-yr avg −120%

Owner-earnings margin −11% 5-yr avg −132%

Free cash flow margin −13% 5-yr avg −144%

The business in brief

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
What moves the needle: Operating margin has run around −212% through the cycle on a 61% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Capital spending runs about 18% of sales, well above depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. Read this kind of business on the pipeline against the patent cliff, and pricing.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −125%, above 15% in 0 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2018–2025

realized figures from each filing · older years to the left

2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
									Income statement
$49M	$60M	$75M	$69M	$117M	$285M	$627M	$1.0B	$1.0B	RevenueRevenue
—	—	—	—	44%	49%	65%	61%	61%	Gross marginGross mgn
($2M)	($127M)	($304M)	($406M)	($435M)	($528M)	($310M)	($137M)	($137M)	Operating incomeOp. inc.
−3.1%	−211.9%	−405.4%	−590.3%	−371.7%	−185.2%	−49.3%	−13.3%	−13.3%	Operating marginOp. mgn
($3M)	($102M)	($266M)	($404M)	($446M)	($518M)	($177M)	($297M)	($218M)	Net incomeNet inc.
									Cash flow & returns
$308M	($83M)	($223M)	($198M)	($201M)	($393M)	($144M)	($100M)	($100M)	Operating cash flowOp. cash
$845K	$3M	$6M	$8M	$10M	$11M	$11M	$9M	$9M	DepreciationDeprec.
$310M	$15M	$37M	$197M	$235M	$114M	$22M	$187M	$109M	Working capital & otherWC & other
$21M	$27M	$26M	$42M	$21M	$20M	$14M	$29M	$29M	CapexCapex
42.7%	44.6%	35.0%	61.3%	17.9%	7.0%	2.2%	2.8%	2.8%	Capex / revenueCapex/rev
$307M	($86M)	($229M)	($207M)	($211M)	($404M)	($155M)	($110M)	($110M)	Owner earningsOwner earn.
624.5%	−143.8%	−305.7%	−300.2%	−180.7%	−141.7%	−24.7%	−10.7%	−10.7%	Owner earnings marginOE mgn
$287M	($110M)	($249M)	($241M)	($222M)	($413M)	($158M)	($129M)	($129M)	Free cash flowFCF
583.6%	−183.1%	−332.3%	−349.7%	−189.9%	−145.0%	−25.2%	−12.5%	−12.5%	Free cash flow marginFCF mgn
-3%	—	—	-163%	-157%	-164%	-23%	-93%	-93%	ROICROIC
-1%	—	-176%	-53%	-60%	-41%	-17%	-29%	-21%	Return on equityROE
−1%	—	−176%	−53%	−60%	−41%	−17%	−29%	−21%	Retained to equityRetained/eq
									Balance sheet
$210M	$83M	$456M	$689M	$786M	$1.3B	$287M	$902M	$902M	Cash & investmentsCash+inv
—	$30M	$30M	$50M	$90K	$100M	$6M	$13M	$13M	ReceivablesReceiv.
—	$1M	$1M	$2M	$10M	$19M	$24M	$32M	$32M	InventoryInvent.
—	$31M	$31M	$52M	$10M	$119M	$30M	$45M	$45M	Operating working capitalOper. WC
—	$207M	$212M	$950M	$1.1B	$1.5B	$1.3B	$1.2B	$1.2B	Current assetsCur. assets
—	$128M	$94M	$229M	$298M	$216M	$278M	$636M	$636M	Current liabilitiesCur. liab.
—	1.6×	2.2×	4.1×	3.7×	6.9×	4.6×	2.0×	2.0×	Current ratioCurr. ratio
—	$288M	$293M	$1.1B	$1.3B	$1.8B	$1.7B	$1.7B	$1.7B	Total assetsAssets
—	—	—	$120M	$261M	$281M	$301M	$0	$0	Total debtDebt
—	—	—	($568M)	($525M)	($996M)	$15M	($902M)	($902M)	Net debt / (cash)Net debt
-18.7×	-569.9×	-72.2×	-451.4×	-40.3×	-24.2×	-14.3×	-6.4×	-6.4×	Interest coverageInt. cov.
$253M	($123M)	$151M	$766M	$744M	$1.3B	$1.0B	$1.0B	$1.0B	Shareholders’ equityEquity
									Per share
200M	200M	236M	282M	318M	352M	366M	369M	369M	Shares out (diluted)Shares
$0.25	$0.30	$0.32	$0.24	$0.37	$0.81	$1.72	$2.79	$2.79	Revenue / shareRev/sh
$-0.01	$-0.51	$-1.13	$-1.43	$-1.40	$-1.47	$-0.48	$-0.81	$-0.59	EPS (diluted)EPS
$1.53	$-0.43	$-0.97	$-0.73	$-0.66	$-1.15	$-0.42	$-0.30	$-0.30	Owner earnings / shareOE/sh
$1.43	$-0.55	$-1.05	$-0.85	$-0.70	$-1.17	$-0.43	$-0.35	$-0.35	Free cash flow / shareFCF/sh
$0.10	$0.13	$0.11	$0.15	$0.07	$0.06	$0.04	$0.08	$0.08	Cap. spending / shareCapex/sh
$1.26	$-0.61	$0.64	$2.72	$2.34	$3.55	$2.85	$2.76	$2.76	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	7-yr	5-yr
Revenue / share	+41.5%/yr	+54.5%/yr
Capital spending / share	−4.2%/yr	−6.9%/yr
Book value / share	+11.8%/yr	+33.9%/yr

The record, charted

FY2018–2025

Each measure over its full record; the current point and the worst year marked.

Share count

369Mpeak FY2025

ROIC

−93%low FY2023

Gross margin

61%low FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($110M)owner earningsvs.($297M)net incomelow FY2023

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned ($110M) of owner earnings, the operating cash left after the $9M it takes just to hold its position. It put $19M more into growth; free cash flow, after that spending, was ($129M).

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($297M)	($177M)	($518M)	($446M)	($404M)
Depreciation & amortizationnon-cash charge added back	+$9M	+$11M	+$11M	+$10M	+$8M
Working capital & othertiming of cash in and out, other non-cash items	+$187M	+$22M	+$114M	+$235M	+$197M
Cash from operations	($100M)	($144M)	($393M)	($201M)	($198M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$9M	−$11M	−$11M	−$10M	−$8M
Owner earnings	($110M)	($155M)	($404M)	($211M)	($207M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$19M	−$3M	−$9M	−$11M	−$34M
Free cash flow	($129M)	($158M)	($413M)	($222M)	($241M)
Owner-earnings marginowner earnings ÷ revenue	-11%	-25%	-142%	-181%	-300%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $9M, roughly its depreciation, the rate its assets wear out). The other $19M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -6.4×

Does not cover its interest

Operating income ($137M) ÷ interest expense $21M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$902M

Net cash, debt-free

Cash $902M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $902M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -157%

Below average through the cycle

6-yr median, range -164%–-3%; -93% latest = NOPAT ($108M) ÷ invested capital $116M

Industry peers: median -11%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran -93% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -144%

Consumes cash through the cycle

8-yr median margin, range -306%–625%; latest ($110M) = operating cash ($100M) − maintenance capex $9M

Industry peers: median -14%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -11% of revenue this year, a -144% median across 8 years. It chose to put $19M more into growth, so free cash flow this year was ($129M) — the gap is investment, not weakness.
Are earnings backed by cash? ($100M)

Loss, and burning cash

Net income ($218M) · cash from operations ($100M)

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 3.04×

Expanding

Capex $29M ÷ depreciation $9M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.0B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.96×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $0 vs $611M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (8-yr record) · 8 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.89/share (latest year $-0.59), the averaged base the calculator's gate runs on, and book value is $2.75/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2018–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 8

What this means
Lost money in 8 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 5 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −207% → −83% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −207% early to −83% lately, median −212% — pricing power intact or improving.
Reinvestment, incremental ROIC −57%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Worst year 2021 · −590.3% op. margin

What this means
Operations went underwater in 2021, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.2B

Cash & short-term investments$902M
Receivables$13M
Inventory$32M
Other current assets$300M

Current liabilities$636M

Other current liabilities$636M

Current ratio1.96×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.91×stricter: inventory excluded

Cash ratio1.42×strictest: cash alone against what's due

Working capital$611Mthe cushion left after near-term bills

Cash runway7.0 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate

Deeper floors

Tangible book value$1.0Bequity stripped of goodwill & intangibles

Net current asset value$516MGraham's net-net: current assets less all liabilities

Deferred revenue$11Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PBHPrestige Consumer Healthcare	$1.1B	56%	29.0%	8%	21%
ACADACADIA Pharmaceuticals Inc.	$1.1B	94%	-54.1%	-48%	-29%
LEGNLegend Biotech Corporation	$1.0B	55%	-198.6%	-125%	-143%
MDGLMadrigal Pharmaceuticals Inc.	$958M	99%	-276.4%	-61%	-254%
IONSIonis Pharmaceuticals	$944M	99%	-16.9%	-11%	-14%
ANIPANI Pharmaceuticals Inc.	$883M	62%	8.8%	4%	17%
HRMYHarmony Biosciences Holdings Inc.	$868M	79%	26.7%	38%	32%
ARWRArrowhead Pharmaceuticals	$829M	—	-106.8%	-51%	-77%
Group median	—	79%	-35.5%	-29%	-21%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American depositary shares, each representing two ordinary”; Legend Biotech Corporation reports in USD, so every figure in this tool is stated per ADS so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed.

Legend Biotech Corporation is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.

Today’s price $

The assumptions Required return 9% Years to get there 10 Revenue growth 0%

Revenue, delivered80%/yr’20→’25

Mature owner-earnings margin 15%

Enter a price to run it.

Owner earnings it must reach—

Margin the price demands—

Owner-earnings margin today−13%

Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.

Weigh LEGN against another business →

Cite: Owner Scorecard, "Legend Biotech Corporation (LEGN), the owner's record," https://ownerscorecard.com/c/LEGN, data as of 2026-07-09.

Manual order: ← LANV its page in the Manual LFS →

Industry order: ← KZIA the Pharmaceuticals chapter LGND →