TAKEDA PHARMACEUTIC-SP ADR (TAK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TAK - US8740602052 - ADR
16.61 USD
+0.32 (+1.96%)
16.61 USD
0 (0%)
Overall TAK gets a fundamental rating of 5 out of 10. We evaluated TAK against 190 industry peers in the Pharmaceuticals industry. While TAK belongs to the best of the industry regarding profitability, there are concerns on its financial health. TAK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TAK was profitable.
- In the past year TAK had a positive cash flow from operations.
- TAK had positive earnings in each of the past 5 years.
- Each year in the past 5 years TAK had a positive operating cash flow.
1.2 Ratios
- TAK's Return On Assets of 0.23% is fine compared to the rest of the industry. TAK outperforms 77.89% of its industry peers.
- The Return On Equity of TAK (0.46%) is better than 79.47% of its industry peers.
- With a decent Return On Invested Capital value of 1.87%, TAK is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TAK is significantly below the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.46% | ||
| ROIC | 1.87% |
ROA(3y)1.33%
ROA(5y)1.73%
ROE(3y)2.84%
ROE(5y)3.97%
ROIC(3y)2.62%
ROIC(5y)2.55%
1.3 Margins
- TAK's Profit Margin of 0.75% is fine compared to the rest of the industry. TAK outperforms 77.89% of its industry peers.
- TAK's Profit Margin has improved in the last couple of years.
- The Operating Margin of TAK (8.46%) is better than 80.00% of its industry peers.
- In the last couple of years the Operating Margin of TAK has grown nicely.
- Looking at the Gross Margin, with a value of 64.60%, TAK is in the better half of the industry, outperforming 74.21% of the companies in the same industry.
- TAK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 0.75% | ||
| GM | 64.6% |
OM growth 3Y-8.47%
OM growth 5Y6.13%
PM growth 3Y-28.5%
PM growth 5Y11.87%
GM growth 3Y-1.71%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
- TAK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- TAK has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TAK has more shares outstanding
- TAK has a better debt/assets ratio than last year.
2.2 Solvency
- TAK has an Altman-Z score of 1.23. This is a bad value and indicates that TAK is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of TAK (1.23) is comparable to the rest of the industry.
- The Debt to FCF ratio of TAK is 5.04, which is a neutral value as it means it would take TAK, 5.04 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TAK (5.04) is better than 83.16% of its industry peers.
- TAK has a Debt/Equity ratio of 0.61. This is a neutral value indicating TAK is somewhat dependend on debt financing.
- TAK has a worse Debt to Equity ratio (0.61) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.16
WACC1.62%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that TAK should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.36, TAK is doing worse than 73.68% of the companies in the same industry.
- TAK has a Quick Ratio of 1.36. This is a bad value and indicates that TAK is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.76, TAK is not doing good in the industry: 84.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- TAK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.38%.
- The Earnings Per Share has been growing by 19.20% on average over the past years. This is quite good.
- The Revenue has decreased by -2.84% in the past year.
- The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)-88.38%
EPS 3Y-22.57%
EPS 5Y19.2%
EPS Q2Q%-112.87%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y8.68%
Revenue growth 5Y6.84%
Sales Q2Q%-5.38%
3.2 Future
- The Earnings Per Share is expected to grow by 45.21% on average over the next years. This is a very strong growth
- Based on estimates for the next years, TAK will show a decrease in Revenue. The Revenue will decrease by -0.03% on average per year.
EPS Next Y74.27%
EPS Next 2Y67.89%
EPS Next 3Y45.21%
EPS Next 5YN/A
Revenue Next Year-1.77%
Revenue Next 2Y-0.66%
Revenue Next 3Y-0.03%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 237.29, which means the current valuation is very expensive for TAK.
- Compared to the rest of the industry, the Price/Earnings ratio of TAK indicates a somewhat cheap valuation: TAK is cheaper than 75.79% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, TAK is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 26.62, the valuation of TAK can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TAK indicates a somewhat cheap valuation: TAK is cheaper than 73.68% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of TAK to the average of the S&P500 Index (25.98), we can say TAK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 237.29 | ||
| Fwd PE | 26.62 |
4.2 Price Multiples
- 87.37% of the companies in the same industry are more expensive than TAK, based on the Enterprise Value to EBITDA ratio.
- 92.11% of the companies in the same industry are more expensive than TAK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.77 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TAK does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of TAK may justify a higher PE ratio.
- A more expensive valuation may be justified as TAK's earnings are expected to grow with 45.21% in the coming years.
PEG (NY)3.19
PEG (5Y)12.36
EPS Next 2Y67.89%
EPS Next 3Y45.21%
5. Dividend
5.1 Amount
- TAK has a Yearly Dividend Yield of 3.98%.
- TAK's Dividend Yield is rather good when compared to the industry average which is at 0.46. TAK pays more dividend than 96.84% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TAK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
- The dividend of TAK has a limited annual growth rate of 1.18%.
- TAK has paid a dividend for at least 10 years, which is a reliable track record.
- TAK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.18%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- 935.06% of the earnings are spent on dividend by TAK. This is not a sustainable payout ratio.
- The dividend of TAK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP935.06%
EPS Next 2Y67.89%
EPS Next 3Y45.21%
TAKEDA PHARMACEUTIC-SP ADR / TAK FAQ
What is the fundamental rating for TAK stock?
ChartMill assigns a fundamental rating of 5 / 10 to TAK.
What is the valuation status for TAK stock?
ChartMill assigns a valuation rating of 5 / 10 to TAKEDA PHARMACEUTIC-SP ADR (TAK). This can be considered as Fairly Valued.
What is the profitability of TAK stock?
TAKEDA PHARMACEUTIC-SP ADR (TAK) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for TAK stock?
The Price/Earnings (PE) ratio for TAKEDA PHARMACEUTIC-SP ADR (TAK) is 237.29 and the Price/Book (PB) ratio is 1.13.
How financially healthy is TAKEDA PHARMACEUTIC-SP ADR?
The financial health rating of TAKEDA PHARMACEUTIC-SP ADR (TAK) is 3 / 10.